Economics • Banking & FinanceMedium
Under the Banking Regulation Act, 1949, which section empowers the Reserve Bank of India to issue directions to banking companies in the public interest?
A. Section 21
B. Section 35A✓ Correct Answer
C. Section 42
D. Section 45
💡 Solution & Explanation
Section 35A of the Banking Regulation Act, 1949 grants power to the RBI to issue directions to commercial banks in the interest of public policy and banking stability. Section 21 deals specifically with control over advances by banking companies.
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