Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Motiram Agrawal Jalna Merchants Co-operative Bank Ltd, Jalna – 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 Motiram Agrawal Jalna Merchants Co-operative Bank Ltd, Jalna, for a further period of three months from October 10, 2026, to January 10, 2027.
🎯 Prelims High-Yield Examination Points
Under which section of the Banking Regulation Act, 1949 (as applicable to cooperative societies) does the Reserve Bank of India issue directions to cooperative banks such as Motiram Agrawal Jalna Merchants Co-operative Bank Ltd?
⚖️ Mains Analytical & Syllabus Linkages
Discuss the regulatory powers of the Reserve Bank of India over cooperative banks in India and analyze the implications of invoking Section 35A of the Banking Regulation Act, 1949.
🎯 UPSC Prelims Practice Drill
With reference to the regulatory powers of the Reserve Bank of India (RBI) over co-operative banks, consider the following statements regarding Section 35A read with Section 56 of the Banking Regulation Act, 1949: 1. The RBI can issue directions to co-operative banks in the public interest. 2. An extension of directions by the RBI under these provisions inherently implies that the central bank is satisfied with the financial position and revival of the concerned 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 is empowered under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, to issue and extend directions in the public interest. Statement 2 is incorrect because the extension or modification of directions by the RBI should not per se be construed to 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.