Current Affairs · Section 35A Banking Regulation Act 1949
With reference to the regulatory framework invoked by the Reserve Bank of India to address operational and technical deficiencies in commercial banks, which of the following statements best articulates the statutory scope of Section 35A of the Banking Regulation Act, 1949?
- 1It provides the statutory framework for the RBI to enforce financial penalties on external IT auditors who fail to validate digital compliance reports.
- 2It authorizes the RBI to supersede a bank's Board of Directors exclusively for non-compliance with the prescribed debt-to-equity ratio in digital infrastructure financing.
- 3It mandates the RBI to strictly regulate interchange rates for credit card transactions whenever a bank faces recurring technical failures during online customer onboarding.
- 4It empowers the RBI to issue binding directions to banking companies in the public interest, to prevent affairs from being conducted detrimental to depositors, or to secure proper management.✓
Correct answer
It empowers the RBI to issue binding directions to banking companies in the public interest, to prevent affairs from being conducted detrimental to depositors, or to secure proper management.
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