Question

Under Section 45 of the Banking Regulation Act, 1949,

Q: Answer-Under Section 45 of the Banking Regulation Act, 1949, once the Reserve Bank has prepared a scheme fo...

Section 457 provides that the scheme shall be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modifications or with such modifications as it considers necessary the scheme as sanctioned shall come into force on such date as the Central Government may specify in that behalf. The proviso to sub-section 7 adds that different dates may be specified for different provisions of the scheme, allowing a phased implementation. Under Section 457A, the sanction accorded by the Central Government is conclusive evidence that all requirements of the section have been complied with, and a certified copy of the sanctioned scheme is admissible as evidence in all legal proceedings to the same extent as the original.

once the Reserve Bank has prepared a scheme for reconstruction or amalgamation and sent it to the concerned banking companies for suggestions and objections, the scheme is thereafter placed before the Central Government for sanction. Under sub-section (7), the scheme as sanctioned by the Central Government shall come into force:

A Immediately upon the Reserve Bank’s approval of the draft scheme

B On the date of the moratorium order passed by the Central Government

C On such date as the Central Government may specify in that behalf

D Thirty days after publication of the scheme in the Official Gazette

E Only after both Houses of Parliament pass a resolution approving it

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