Question

The section of Banking Regulation Act that deals with the power of the Reserve Bank to give directions

• A. Section 35 A
• B. Section 36 A
• C. Section 34 B
• D. Section 35 C

Answer 1

Answer:

A. Section 35 A

BR Act:

• The BR Act and the RBI Act empower the Reserve Bank to supervise and regulate the operations of all types of banks in India.

• Banking Companies Act 1949

• Act 10 of 1949

• Banking Companies Act was passed in : 10-3-1949

• Came into force in : 16-3-1949

• Banking Companies Act was renamed as Banking Regulation Act in : 1966

• Banking Regulation Act was applicable to Co-operative Societies in 1965 and came in to force on 1.3.1966

• Total Number Sections in BR Act - 56

• Total number of Schedules in BR Act - 5

• 5 parts

• 5 Schedules

Sec.35A. Power of the Reserve Bank to give directions: 

• Where the Reserve Bank is satisfied that; in the public interest or in the interest of the banking policy, to secure the proper management of any banking company generally, to prevent the affairs of any banking company, it is necessary to issue directions.