Section 54 of the Banking Regulation Act, 1949 confers a

Solution

Section 54(1) provides a general immunity from suit or legal proceedings against the Central Government, the Reserve Bank or any officer for anything done or intended to be done in good faith in pursuance of the Act. Section 54(2) extends this to cover suits or proceedings for any damage caused or likely to be caused by anything in good faith done or intended to be done in pursuance of the Act, subject to the qualification “save as otherwise expressly provided by or under this Act.” The saving clause preserves specific liability provisions elsewhere in the Act. The good faith standard is the operative criterion: actions taken honestly in pursuance of the Act, even if they cause damage, attract this statutory immunity. This protection encourages decisive regulatory action without fear of litigation from affected parties.