The question (15 marks)
Trace the powers of the Reserve Bank over a banking company in difficulty, from the issue of directions to winding up. (15 marks)
MU Module 2, heads 2.1 and 2.2; pack chapter on the Banking Regulation Act.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 2 · The Laws Governing Financial Institutions of Law of Banking and Negotiable Instruments.
Authorities you will need
- M/S Durga Hotel Complex v. Reserve Bank of India
- Sajjan Bank (Private) Ltd. v. Reserve Bank of India
- M/S Integrated Finance Co. Ltd. v. Reserve Bank of India
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.