Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Amanath Co-operative Bank Ltd., Bangalore - Extension of Period
Distilled Policy Brief
- The Reserve Bank of India extended the directive on The Amanath Co-operative Bank Ltd., Bangalore for three months from September 12, 2026 to December 12, 2026 under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
- The extension of the directive by the Reserve Bank of India does not imply that it is satisfied with the financial position of the 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 and extend directions to co-operative banks in the public interest.
⚖️ Mains Analytical & Syllabus Linkages
Examine the role of the Reserve Bank of India in regulating and supervising co-operative banks to ensure financial stability and protect depositor interests.
🎯 UPSC Prelims Practice Drill
With reference to the regulatory powers of the Reserve Bank of India (RBI) over co-operative banks under the Banking Regulation Act, 1949, consider the following statements regarding the extension of directives issued to a co-operative bank: 1. The RBI can issue and extend directives under Section 35A read with Section 56 of the Banking Regulation Act, 1949 in the public interest. 2. The extension of such directives by the RBI inherently implies that the central bank is satisfied with the improved financial position of the 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 possesses statutory powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to issue and extend directives concerning co-operative banks in the public interest. Statement 2 is incorrect because an extension of the directive by the RBI 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.