Skip to content

CS Professional · Banking and Insurance - Laws and Practice · Control over Organization of Banks

The Reserve Bank has issued a direction under a section listed in Section 51(1), referring to 'a banking company' without stating otherwise. How is the reference read for SBI and other notified banks under Section 51(2)?

Under Section 51(2), a reference to a banking company in a rule or direction on a provision listed in sub-section (1) is construed as also covering SBI, a corresponding new bank, a Regional Rural Bank and a subsidiary bank, unless the rule or direction provides otherwise.

  1. AIt excludes SBI, corresponding new banks, Regional Rural Banks and subsidiary banks
  2. BIt is read as referring also to SBI, a corresponding new bank, a Regional Rural Bank and a subsidiary bank, unless the rule or direction provides otherwiseCorrect
  3. CIt applies to them only after a separate Central Government notification
  4. DIt applies only to subsidiary banks of SBI

Explanation

Section 51(2) says references to a banking company in any rule or direction relating to a provision listed in sub-section (1) are, except where the rule or direction provides otherwise, construed as referring also to SBI, a corresponding new bank, a Regional Rural Bank and a subsidiary bank.

Did you get it right without looking?

One question tells you little. A timed set on Control over Organization of Banks shows your real accuracy, how long you take and where you lose marks.

Practise Control over Organization of BanksFree diagnostic mock

More Control over Organization of Banks questions