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Banking Regulation Act, 1949 · Section guide

Section 9: Disposal of non-banking assets

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 9 — Disposal of non-banking assets. Requires disposal of immovable property acquired otherwise than for the bank’s own use within the statutory holding. Period; RBI may extend the period within the statutory ceiling and the bank may deal with the property to facilitate disposal.

Official statute linkedProvision-specific anatomyPractical case + evidence file
Official text: DFS consolidated Act

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Requires disposal of immovable property acquired otherwise than for the bank’s own use within the statutory holding period.

Condition / limitation

RBI may extend the period within the statutory ceiling and the bank may deal with the property to facilitate disposal.

Source and effective-date control

Apply the wording of Section 9 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

State the holding/disposal period, extension authority and conditions; provide a dated non-banking-asset example.

Evidence / working-paper checklist

  • Section 9 evidence: board-approved business/product note.
  • Section 9 evidence: legal classification of the proposed activity.
  • Section 9 evidence: counterparty and transaction documents.
  • Section 9 evidence: any RBI approval/direction or sector-law permission relevant to the activity.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

  • For Section 9, avoid treating commercial convenience as statutory authority to conduct the activity.
  • For Section 9, avoid ignoring an express prohibition because the activity is incidental to banking.
  • For Section 9, avoid forgetting that a permitted banking activity may still require a separate sector-law licence.

Related sections inside the Act

Section 7 — Use of words “bank”, “banker”, “banking” or “banking company”Section 8 — Prohibition of tradingSection 10 — Prohibition of employment of managing agents and restrictions on certain forms of employmentSection 10A — Board of directors to include persons with professional or other experience

Use these links to read Section 9 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: Section 9 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 9 on the event date.

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.