Section 35AA of The Banking Regulation Act, 1949: Power of Central Government to authorise Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.

Section 35AA of The Banking Regulation Act, 1949: Power of Central Government to authorise Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.

Power of Central Government to authorise Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process. – The Central Government may, by order, authorise the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016.
Explanation. – For the purposes of this section, “default” has the same meaning assigned to it in clause (12) of section 3 of the Insolvency and Bankruptcy Code, 2016.
35AB. Power of Reserve Bank to issue directions in respect of stressed assets. – (1) Without prejudice to the provisions of section 35A, the Reserve Bank may, from time to time, issue directions to any banking company or banking companies for resolution of stressed assets.
(2) The Reserve Bank may specify one or more authorities or committees with such members as the Reserve Bank may appoint or approve for appointment to advise any banking company or banking companies on resolution of stressed assets.]

 

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