(1) Where the Reserve Bank is satisfied that it is necessary or expedient in the public interest 1[or in the interests of depositors] 2[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 particular, 3[as to—

4[(3) Every banking company shall be bound to comply with any directions given to it under this section.]1. Ins. by s.13, ibid. (w.e.f. 1-2-1964). 2. Ins. by Act 58 of 1968, s. 6 (w.e.f. 1-2-1969). 3. Subs. by Act 55 of 1963, s. 13, for certain words (w.e.f. 1.2.1964). 4. Ins. by s. 13, ibid. (w.e.f. 1-2-1964).