Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Gauhati Co-operative Urban Bank Ltd., Guwahati – Extension of period
Distilled Policy Brief
- The Reserve Bank of India extended the directive issued to The Gauhati Co-operative Urban Bank Ltd. for a further period of three months from September 17, 2026, to December 17, 2026, under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
🎯 Prelims High-Yield Examination Points
Under which statutory provision does the RBI issue directions to co-operative banks? Section 35A read with Section 56 of the Banking Regulation Act, 1949.
⚖️ Mains Analytical & Syllabus Linkages
Examine the regulatory role and supervisory powers of the RBI over co-operative banks in India.
🎯 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 directives issued under the Banking Regulation Act, 1949: 1. The RBI can issue and extend directions to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949. 2. The extension of such a directive by the RBI inherently implies that the central bank is fully satisfied with the financial turnaround and stability 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 possesses the power to issue and extend directives to cooperative banks under Section 35A read with Section 56 of the Banking Regulation Act, 1949, in the public interest. Statement 2 is incorrect because the extension or modification of a directive 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.