law: Banking Regulation Act, 1949
  21. Power of Reserve Bank to control advances
  
  by banking companies
  (1) Where the Reserve Bank is satisfied that
  
  it is necessary or expedient in the public interest 86[or in the interests of
  
  depositors] 12[or banking policy] so to do, it may determine the policy in
  
  relation to advances to be followed by banking companies generally or by any
  
  banking company in particular, and when the policy has been so determined, all
  
  banking companies or the banking company concerned, as the case may be, shall
  
  be bound to follow the policy as so determined.
  (2) Without prejudice to the generality of the
  
  power vested in the Reserve Bank under sub-section (1), the Reserve Bank may
  
  give directions to banking companies, either generally or to any banking
  
  company or group of banking companies in particulars, 9[as to-
  (a) the purposes for
  
  which advances may or may not be made;
  (b) the margins to be
  
  maintained in respect of secured advances;
  (c) the maximum amount
  
  of advances or other financial accommodation which, having regard to the
  
  paid-up capital, reserves and deposits of a banking company and other relevant
  
  considerations, may be made by that banking company to any one company, firm,
  
  association to persons or individual;
  (d) the maximum amount
  
  up to which, having regard to the considerations referred to in clause (c), guarantees
  
  may be given by a banking company on behalf of any one company, firm,
  
  association of persons or individual; and
  (e) the rate of
  
  interest and other terms and conditions on which advances or other financial
  
  accommodation may be made or guarantees may be given.]
  (3) Every banking company shall be bound to
  
  comply with any directions given to it under this section.