Section 36A(2) of the Banking Regulation Act, 1949 deals with banking companies whose licences have been cancelled or which have been prohibited from accepting fresh deposits. Once the Reserve Bank is satisfied that such a company has repaid or made adequate provision for repaying all deposits, it may by notice published in the Official Gazette notify that the company has ceased to be a banking company. What is the effect of such a notice?

Section 36A(2), inserted by the Banking Companies (Amendment) Act, 1959 (Act 33 of 1959) with effect from 1 October 1959, provides that where the Reserve Bank is satisfied that a company whose licence was refused or cancelled or which was barred from accepting fresh deposits has repaid or made adequate provision for repaying all deposits (in full or to the maximum extent possible), the Reserve Bank may by notice published in the Official Gazette notify that the company has ceased to be a banking company within the meaning of the Act. Thereupon, all provisions of the Act applicable to that company cease to apply to it, except as respects things done or omitted to be done before such notice. This gives the company a clean exit from banking regulation once its depositor obligations are discharged.