As per Section 35A of the Banking Regulation Act, 1949, the Reserve Bank has the power to give…
Section 35A(1) of the Banking Regulation Act, 1949 empowers the Reserve Bank to issue directions to banking companies where it is satisfied that this is necessary in the…
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As per Section 35A of the Banking Regulation Act, 1949, the Reserve Bank has the power to give directions under which of the following circumstances?
(A). in public interest
(B). in the interest of public policy
(C). to secure proper management of banking companies
(D). to prevent affairs of banking companies being conducted in a manner detrimental to depositor's interest
Answer and explanation
Correct answer B
Section 35A(1) of the Banking Regulation Act, 1949 empowers the Reserve Bank to issue directions to banking companies where it is satisfied that this is necessary in the public interest, in the interest of banking policy, to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or prejudicial to the banking company, or to secure the proper management of any banking company. The statutory ground is 'banking policy', not 'public policy', so the correct combination is "(A), (C) and (D) only.".
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CUET PG Law (LL.M.)