Section 188 — Mode of repayment of certain loans or deposits or specified advances

(1) No branch of a banking company or co-operative bank and no other
company or co-operative society and no firm or other person shall repay—
( a) any loan or deposit made with it; or
( b) any specified advance received by it,
except through—
( i) an account payee cheque;
( ii) account payee bank draft drawn in the name of the person who has made
the loan or deposit or paid the specified advance; or
( iii) by use of electronic clearing system through a bank account, or any other
prescribed electronic mode,
if, —
( A) the loan or the deposit or specified advance, together with the interest,
if any, payable thereon; or
( B) the aggregate amount of the loans or deposits held by such person with
the branch of the banking company or co-operative bank or, as the case
may be, the other company or co-operative society or the firm or other
person (either individually or jointly) on the date of such repayment
together with interest, if any, payable thereon; or
( C) the aggregate amount of the specified advances received by such person
(either individually or jointly) on the date of such repayment together
with the interest, if any, payable thereon,
is ` 20000 or more.
(2) Irrespective of the provision in sub-section (1), a branch of a banking compa -
ny or co-operative bank, may also make the repayment by crediting such loan or
deposit to the savings bank account or current account, if any, with such branch of
the person to whom such loan or deposit has to be repaid.
(3) Sub-section (1) shall not apply to repayment of any loan, deposit, or specified
advance taken or accepted from—
( a) Government;
( b) any banking company, post office savings bank, or co-operative bank;
( c) any corporation established by a Central, State, or Provincial Act;
( d) any Government company as defined in section 2(45) of the Companies
Act, 2013 (18 of 2013);
( e) any institution, association, or body or class of institutions, associations
or bodies notified by the Central Government.
(4) In sub-section (1), “ ` 200000” shall be substituted for “ ` 20000” in the case of
any deposit or loan where—
( a) such deposit is repaid to a member by a primary agricultural credit society
or a primary co-operative agricultural and rural development bank; or
( b) such loan is repaid by a member to a primary agricultural credit society
or a primary co-operative agricultural and rural development bank.
(5) For the purposes of this section, the expression “loan or deposit” means any loan
or deposit of money which is repayable after notice or repayable after a period and,
in the case of a person other than a company, includes loan or deposit of any nature.