Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Lokapavani Mahila Sahakari Bank Niyamitha, Mandya - Extension of Period
Distilled Policy Brief
- The Reserve Bank of India extended directions issued to Lokapavani Mahila Sahakari Bank Niyamitha, Mandya under Section 35A read with Section 56 of the Banking Regulation Act, 1949 for an additional three months.
🎯 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
Examine the role of the Reserve Bank of India in regulating and supervising cooperative banks to ensure financial stability and protect depositor interests.
🎯 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 directions by the RBI inherently implies that the central bank is fully satisfied with the improved financial position 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 as the RBI derives its power to issue and extend directions to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Statement 2 is incorrect because the extension or modification of directions by the RBI 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.