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RBI extends supersession of Abhyudaya Co-operative Bank's board by a year
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
One year, then another: the Section 36AAA power RBI used on Abhyudaya Bank, a GS3 banking staple
RBI extends the supersession of Abhyudaya Co-operative Bank's board under the Banking Regulation Act.
Why it matters: asked in UPSC 2024; GS-3 core; factual, Prelims-type
What you need to know
2 ನಿಮಿಷ
The Reserve Bank of India has extended by another year the supersession of the board of directors of Abhyudaya Co-operative Bank Ltd., Mumbai.
The board was first superseded for one year on 24 November 2023, and the extension is ordered under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949.
Supersession keeps a co-operative bank with governance concerns under regulatory control.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- RBI extended the supersession of the board of Abhyudaya Co-operative Bank Ltd., Mumbai, by another year
- The board was first superseded for one year on 24 November 2023
- The extension is ordered under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949
- Section 56 applies the Banking Regulation Act to co-operative banks with modifications
- Supersession keeps a co-operative bank with governance concerns under regulatory control
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- The RBI can supersede the board of a co-operative bank under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949.
- The Banking Regulation Act, 1949 applies to co-operative banks through Section 56, with modifications.
- Supersession of a board is a regulatory tool to address governance concerns in a bank, and it is time-bound but extendable.
ಮೇನ್ಸ್
GS Paper 3 (Banking / Co-operative banks). Repeated governance failures in urban co-operative banks led to RBI's power to supersede boards under the Banking Regulation Act, 1949, which protects depositors but extends regulatory control over co-operative institutions. The way forward lies in stronger board professionalisation, clearer RBI-State dual-regulation boundaries and timely resolution so that supersession does not become indefinite.
PYQ connection
A question UPSC has already asked on this
With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
- There is no minimum capital requirement for wholly owned banking subsidiaries in India.
- For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: D
Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.
Practise this PYQ →Quick recall
Answer before you reveal
ಅಭ್ಯುದಯ ಸಹಕಾರಿ ಬ್ಯಾಂಕ್ ವಿಷಯದಲ್ಲಿ ಬಳಸಿದಂತೆ, ಸಹಕಾರಿ ಬ್ಯಾಂಕಿನ ನಿರ್ದೇಶಕ ಮಂಡಳಿಯನ್ನು ಅಧಿಕ್ರಮಿಸುವ ಆರ್‌ಬಿಐ ಅಧಿಕಾರ ಯಾವ ಕಾಯ್ದೆಯಿಂದ ಬರುತ್ತದೆ?
- ಭಾರತೀಯ ರಿಸರ್ವ್ ಬ್ಯಾಂಕ್ ಕಾಯ್ದೆ, 1934
- ಕಂಪನಿಗಳ ಕಾಯ್ದೆ, 2013
- ಬಹು-ರಾಜ್ಯ ಸಹಕಾರಿ ಸಂಘಗಳ ಕಾಯ್ದೆ, 2002
- ಬ್ಯಾಂಕಿಂಗ್ ನಿಯಂತ್ರಣ ಕಾಯ್ದೆ, 1949
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: D — ಸರಿಯಾದ ಉತ್ತರ: ಬ್ಯಾಂಕಿಂಗ್ ನಿಯಂತ್ರಣ ಕಾಯ್ದೆ, 1949. ಅದರ ಸೆಕ್ಷನ್ 36AAA ಮತ್ತು ಸೆಕ್ಷನ್ 56 ಆರ್‌ಬಿಐಗೆ ಸಹಕಾರಿ ಬ್ಯಾಂಕುಗಳ ಮೇಲೆ ಈ ಅಧಿಕಾರ ನೀಡುತ್ತವೆ.
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