Section 45R of BRA : Section 45R: Power To Call For Returns And Information

Explanation using Example

Imagine a scenario where a banking company, 'FastTrack Bank', has gone into liquidation due to financial troubles. The Reserve Bank of India (RBI), in its role as the regulator of the banking sector, wants to monitor the liquidation process closely to ensure that it is being conducted properly and to safeguard the interests of the depositors and the financial system.

In this context, the RBI issues a written notice to the liquidator appointed for FastTrack Bank, asking for detailed returns and information about the bank's assets, liabilities, and the steps being taken to wind up the company. The liquidator is legally bound to provide the requested information within the timeframe specified by the RBI, under Section 45R of The Banking Regulation Act, 1949. Failing to comply with this requirement could have legal consequences for the liquidator.