Section 35B of BRA : Section 35B: Amendments Of Provisions Relating To Appointments Of Managing Directors, Etc, To Be Subject To Previous Approval Of The Reserve Bank

Explanation using Example

Imagine that XYZ Bank, a banking company, is planning to increase the number of directors on its board. The bank's board proposes to amend its articles of association to raise the maximum number of directors from 10 to 15. According to Section 35B of the Banking Regulation Act, 1949, before XYZ Bank can implement this change, it must seek and receive approval from the Reserve Bank of India (RBI).

Here’s how the application of Section 35B plays out:

• XYZ Bank drafts the proposed amendment to its a...

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