Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The U.P Civil Secretariat Primary Co-operative Bank Ltd., Vidhan Bhawan, Lucknow, U.P – 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 U.P Civil Secretariat Primary Co-operative Bank Ltd., Lucknow.
- The regulatory directive has been extended for a further period of three months from the close of business on September 11, 2026, to December 11, 2026.
- Such RBI directions do not amount to a certificate of financial health or cancellation of banking license, but act as corrective measures in public interest.
🎯 Prelims High-Yield Examination Points
Section 35A read with Section 56 of the Banking Regulation Act, 1949 empowers the RBI to issue directions to cooperative banks in public interest.
⚖️ Mains Analytical & Syllabus Linkages
Highlights the regulatory oversight of the RBI over cooperative banks to safeguard depositor interests and maintain financial stability, addressing the dual-regulation challenge in the cooperative banking sector.
🎯 UPSC Prelims Practice Drill
With reference to the regulatory powers of the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949, consider the following statements: 1. The issuance of directions under Section 35A of the Act implies that the RBI is satisfied with the financial health of the concerned bank. 2. Such directions do not per se amount to the cancellation of the banking license of the institution. 3. Section 56 of the Banking Regulation Act, 1949, is used to apply these regulatory provisions to co-operative banks. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is incorrect because the RBI explicitly states that the issuance or extension of directions under Section 35A should not be construed to imply satisfaction with the bank's financial position. Statement 2 is correct as these directions do not amount to the cancellation of the banking license but are corrective measures in the public interest. Statement 3 is correct because Section 56 of the Banking Regulation Act, 1949, is the provision that applies the Act's regulations to co-operative banks.
🏛️ 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.