Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Konark Urban Co-operative Bank Ltd., Ulhasnagar – 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, on The Konark Urban Co-operative Bank Ltd., Ulhasnagar.
- The directive's operation was extended for a further period of three months from October 23, 2026, to January 23, 2027, subject to review in public interest.
- The RBI clarified that the extension does not imply overall satisfaction with the financial position of the cooperative bank.
🎯 Prelims High-Yield Examination Points
The RBI exercises powers to issue directions to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
⚖️ Mains Analytical & Syllabus Linkages
Highlights regulatory interventions by the central bank in the urban cooperative banking sector to safeguard depositor interests and financial stability.
🎯 UPSC Prelims Practice Drill
With reference to the regulatory powers of the Reserve Bank of India (RBI) over cooperative banks, consider the following statements regarding the extension of directions under the Banking Regulation Act, 1949: 1. The RBI can issue and extend directions to urban cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949. 2. The extension of such operational directions by the RBI automatically implies that the central bank is satisfied with the overall financial improvement and position of the 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 as the RBI possesses powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949, to issue and extend directives to cooperative banks in the public interest. Statement 2 is incorrect because the RBI explicitly clarifies that the extension of such directions does not per-se imply that the central bank 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.