Sections 55 and 55A of the Banking Regulation Act, 1949
Sections 55 and 55A appear near the end of Part IV of the Banking Regulation Act, 1949. Section 55 concerns amendments made to the Reserve Bank of India Act, 1934, while Section 55A contains a limited power given to the Central Government to remove difficulties in giving effect to the Banking Regulation Act.
| Section 55 | Amendment of the Reserve Bank of India Act, 1934 (Act 2 of 1934). |
|---|---|
| Section 55A | Power of the Central Government to remove implementation difficulties, subject to statutory limits. |
| Section 55A inserted by | Banking Laws (Amendment) Act, 1968 (Act 58 of 1968), section 20. |
| Effective date noted in the Act | Section 55A was inserted with effect from 1 February 1969. |
Section 55: Amendment of Act 2 of 1934
The Reserve Bank of India Act, 1934 (2 of 1934), shall be amended in the manner specified in the fourth column of the First Schedule, and the amendments to section 18 thereof as specified in the said Schedule shall be deemed to have had effect on and from the 20th day of September, 1947.
What Section 55 means
Section 55 is an amending provision. It links the Banking Regulation Act, 1949 with the Reserve Bank of India Act, 1934 and gives effect to the amendments specified in the First Schedule to the Banking Regulation Act. In relation to the amendment of section 18 of the Reserve Bank of India Act, the provision gives the amendment retrospective effect from 20 September 1947.
For the official text of the Reserve Bank of India Act, 1934, see India Code - Reserve Bank of India Act, 1934.
Section 55A: Power to remove difficulties
If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, as occasion requires, do anything (not inconsistent with the provisions of this Act) which appears to it to be necessary for the purpose of removing the difficulty:
Provided that no such power shall be exercised after the expiry of a period of three years from the commencement of section 20 of the Banking Laws (Amendment) Act, 1968 (58 of 1968).
Meaning and scope of Section 55A
Section 55A was designed as a transitional implementation provision. It allowed the Central Government to issue an order when a practical difficulty arose in giving effect to the Act, but only where the step taken was not inconsistent with the Banking Regulation Act itself.
The proviso is important. The power was expressly time-limited and could not be exercised after the expiry of three years from the commencement of section 20 of the Banking Laws (Amendment) Act, 1968. Accordingly, Section 55A should not be read as a continuing general power available indefinitely to alter or supplement the Act.
Legislative note: Section 55A was inserted by section 20 of the Banking Laws (Amendment) Act, 1968 (58 of 1968), with effect from 1 February 1969.
Official statutory source
The authoritative consolidated text should be checked on India Code. The official text of the Banking Regulation Act, 1949 includes Sections 55 and 55A and their legislative notes.
View the Banking Regulation Act, 1949 on India Code
Related provisions
Readers may also refer to Section 54 - Protection of action taken under the Act and Section 56 - Application of the Act to co-operative societies subject to modifications.