Section 46A of the Banking Regulation Act, 1949 deems

Solution

Section 46A, inserted by the Banking Companies (Amendment) Act, 1956 (Act 95 of 1956) and amended by the Banking Regulation (Amendment) Act, 1994, provides that every chairman appointed on a whole-time basis, managing director, director, auditor, liquidator, manager and any other employee of a banking company shall be deemed to be a public servant for the purposes of Chapter IX of the Indian Penal Code (45 of 1860). Chapter IX of the IPC deals with offences by or relating to public servants, including offences such as disobeying a direction of the law by a public servant, framing an incorrect document, and corruption. The wide coverage — from the whole-time chairman down to any employee — reflects the quasi-public nature of banking and the need for high standards of conduct.