Section 36ACA of the Banking Regulation Act, 1949

Solution

Section 36ACA(1), inserted by the Banking Laws (Amendment) Act, 2012 (Act 4 of 2013) with effect from 18 January 2013, empowers the Reserve Bank, in consultation with the Central Government, to supersede the Board of Directors of a banking company for a period not exceeding six months. The proviso, however, allows extension from time to time, provided the total period shall not exceed twelve months. The RBI may appoint an Administrator (not being an officer of the Central or State Government) with experience in law, finance, banking, economics or accountancy. The Administrator must call a general meeting at least two months before the expiry of the supersession period to elect new directors and reconstitute the Board.