Section 35 of banking regulation act

Banking regulation act, 1949 bare acts law library. Section 35a of the banking regualtion act says that the rbi in public interest and to to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of. Without prejudice to the provisions of section 35a, the reserve bank may, from time to time, issue directions to the banking companies for resolution of stressed assets. The rbi under the banking regulation act, 1949 act can also impose restrictions on banks to ensure better governance and control. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Powers of rbi section 35 section 35a, powers of rbi to give. The reserve bank may specify one or more authorities or committees with such members as the reserve bank may appoint or approve for appointment to advise banking companies on resolution for stressed assets.

Use of words bank, banker, banking or banking company. Section 35a of the banking regulation act, 1949 vests power in the rbi to give directions to banks and can take action, to prevent the affairs of any banking company being conducted in a manner. Reserve bank may, on representation made to it or on its own motion, modify or cancel any direction issued under sub section 1, and in so modifying or cancelling any direction may impose such conditions as it thinks fit. Meanwhile, section 56 of the act is applicable to cooperative. Section 36 further powers and functions of reserve bank. Initially, the law was applicable only to banking companies. It can make it more specific to say you have allowed dealing with specific npas. Why rbi has imposed directions on punjab and maharashtra. Banking regulation act 1949 important sections in hindi.

Directions under section 35 a of the banking regulation act, 1949 aacs shri anand cooperative bank ltd. A copy of the directive dated september 23, 2019 is displayed at the bank s premises for perusal by interested members of public. The banking regulation act, 1949 reserve bank of india. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in. The ordinance to amend banking regulation act allows rbi to ask banks to sit down with loan defaulters and reach a settlement as part of the bad loans resolution package. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. Section 35a of the banking regulation act, 1949 vests power in the rbi to give directions to banks and can take action, to prevent the affairs of. Section 36a certain provisions of the act not to apply to certain banking companies. In 1965, the act was amended to include cooperative banks under its purview by adding the section 56. Section 351 in banking regulation act,1949 indian kanoon. The directions are imposed in exercise of powers vested in the reserve bank under subsection 1 of section 35a of the banking regulation act, 1949 read with section 56 of the said act. The directions are imposed in exercise of powers vested in the reserve bank under subsection 1 of section 35a of the banking regulation act. Section 35 in banking regulation act,1949 indian kanoon. Banking the banking regulation act 1949 section 35.

Directions under section 35a of the banking regulation act. Section 35 aa power of central government to authorize reserve bank for issuing. Power of reserve bank to appoint chairman of the board of directors appointed on a wholetime basis or a managing director of a banking company. There is a reasonable justice that comes through from the vigilance providers to make sure that people are not unnecessarily penalised. Banking regulation act, the reserve bank has power to issue directions when it is satisfied that in the public. Scrutiny by rbi under section 351 a of banking regulation act, 1949 updated on july 27, 2016 published on july 27, 2016 share.