Under Section 4(1) of the Banking Regulation Act, 1949, the Central Government may, on a representation by the Reserve Bank and if satisfied that it is expedient, suspend by notification the operation of all or any provisions of this Act. The period of suspension specified in such a notification shall not exceed:

Section 4(1) provides that the Central Government may, if satisfied on a representation by the Reserve Bank that it is expedient, by notification in the Official Gazette suspend, for such period not exceeding sixty days as may be specified in the notification, the operation of all or any provisions of this Act, either generally or in relation to any specified banking company. Under sub-section (3), the Central Government may extend this suspension from time to time for periods not exceeding sixty days at a time, provided the total period does not exceed one year. This is to be distinguished from the emergency power under sub-section (2), where the RBI Governor may act independently but is limited to thirty days. A copy of any extension notification must be laid on the table of Parliament under sub-section (4).