Section 49A of the Banking Regulation Act, 1949 restricts the acceptance of deposits of money withdrawable by cheque. Apart from a banking company, the Reserve Bank, the State Bank of India, and any banking institution, firm or other person notified by the Central Government on the RBI’s recommendation, the section does not apply to:

Section 49A prohibits any person, other than a banking company, the Reserve Bank, the State Bank of India, or any other banking institution, firm or person notified by the Central Government on the recommendation of the Reserve Bank, from accepting deposits of money withdrawable by cheque from the public. The proviso expressly states that nothing in the section shall apply to any savings bank scheme run by the Government. The purpose is to confine cheque-operable deposit-taking to regulated banking entities, thereby protecting the public and the integrity of the payment system, while carving out government-run savings schemes from the restriction.