20. Restrictions on loans and advance s.
(1)Notwithstanding anything to the contrary
contained in section 77 of the Companies Act, 1956, (1 of 1956 ) no banking company shall, - (a)grant any loans or advances on the security of its own shares, or (b)enter into any commitment for granting any loan or advance to or on behalf of - (ii)any firm in which any of its directors is interested as partner, manager, employee or
guarantor, or (iii)any company (not being a subsidiary of the banking company or a company registered
under section 25 of the Companies Act, 1956 (1 of 1956), or a Govern ment company) of which
3[, or the subsidiary or the holding comp any of which] any of the directors of the banking
company is a director, managing agent, manager, employee or guarantor or i n which he holds
substantial interest, or (iv)any individual in respect of whom any of its directors is a partner or guarantor. (2)Where any loan or advance granted by a banking company is such that a commitment for
granting it could not have been made if clause ( b) of sub -section ( 1) had been in force on the date on
which the loan or advance was made, or is granted by a banking company after the commencement of