Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Suri Friends’ Union Co-operative Bank Ltd., Suri, West Bengal – Extension of period
Distilled Policy Brief
- The Reserve Bank of India extended directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949, for The Suri Friends’ Union Co-operative Bank Ltd., West Bengal.
- The directive's operation is extended for an additional three months from the close of business on October 22, 2026, to January 22, 2027, subject to review.
- The extension does not signify any official satisfaction with the overall financial health and position of the concerned cooperative bank.
🎯 Prelims High-Yield Examination Points
Section 35A read with Section 56 of the Banking Regulation Act, 1949 empowers the Reserve Bank of India to issue directions to cooperative banks in the public interest.
⚖️ Mains Analytical & Syllabus Linkages
Highlights the regulatory oversight exercised by the RBI over urban and rural cooperative banks to safeguard depositor interests and maintain systemic financial stability.
🎯 UPSC Prelims Practice Drill
Consider the following statements regarding the regulatory powers of the Reserve Bank of India (RBI) over cooperative banks: 1. The RBI can issue directions to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949. 2. An extension of such regulatory directions by the RBI automatically signifies its official satisfaction with the overall financial health and position of the concerned cooperative bank. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct because the RBI exercises its powers to issue directions to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Statement 2 is incorrect because the extension of such directions does not per se imply that the RBI is satisfied with the financial position of the bank.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.