Section 27 of BRA : Section 27: Monthly Returns And Power To Call For Other Returns And Information

Explanation using Example

Imagine a scenario where XYZ Bank, a banking company operating in India, is required to comply with Section 27 of The Banking Regulation Act, 1949. According to this law:

• By the end of April, XYZ Bank must submit a detailed report of its assets and liabilities as of the last Friday of March. If that Friday was a public holiday, the report should reflect the figures from the preceding working day.
• In addition, if the Reserve Bank of India (RBI) requests additional information from XYZ Bank at any point, the bank must provide the required data. For instance, the RBI may request XYZ Bank's investment details and the classification of its loan portfolio into sectors like industry, commerce, and agriculture every six months.
• Moreover, if XYZ Bank were a regional rural bank, it would also have to send a copy of this monthly return to the National Bank for Agriculture and Rural Development (NABARD), which has similar powers to the RBI in this context.

This law ensures that the RBI has timely and accurate information about the financial health of banks, which is crucial for maintaining stability in the banking sector.