Skip to main content
Home › Indian Laws › Banking Regulation Act, 1949 › Section 35AB
Banking Regulation Act, 1949 · Section guide

Section 35AB: RBI directions in respect of stressed assets

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 35AB — RBI directions in respect of stressed assets. Allows RBI, without prejudice to section 35A, to direct banks on resolution of stressed. Assets and to specify/adopt expert authorities or committees to advise banks; the operative Prudential Framework must be read with this enabling section.

Official statute linkedProvision-specific anatomyPractical case + evidence file
Official text: DFS consolidated Act

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Allows RBI, without prejudice to section 35A, to direct banks on resolution of stressed assets and to specify/adopt expert authorities or committees to advise banks.

Condition / limitation

the operative Prudential Framework must be read with this enabling section.

Source and effective-date control

Apply the wording of Section 35AB that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Separate stressed-asset directions/advisory committees from Section 35AA insolvency directions; source the current framework.

Evidence / working-paper checklist

  • Section 35AB evidence: RBI notice/direction/inspection requisition.
  • Section 35AB evidence: books, returns and source data supplied to RBI.
  • Section 35AB evidence: management response and remediation evidence.
  • Section 35AB evidence: effective-date mapping for every operative paragraph of the RBI instrument.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

  • For Section 35AB, avoid treating an RBI direction as advisory.
  • For Section 35AB, avoid answering an inspection request from summary data that cannot be reconciled to books.
  • For Section 35AB, avoid implementing a circular without checking applicability, effective date and supersession.

Linked Rules, RBI directions, notifications and forms

Linked instruments keep their own legal basis; they are not attributed to Section 35AB unless the official instrument says so.

Related sections inside the Act

Section 35A — Power of the Reserve Bank to give directionsSection 35AA — Central Government authorisation for RBI directions to initiate insolvency resolutionSection 35B — Appointments of managing directors, etc. subject to previous RBI approvalSection 36 — Further powers and functions of Reserve Bank

Use these links to read Section 35AB in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: Section 35AB is anchored to the official DFS consolidated text; later changes require separate Gazette verification.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 35AB on the event date.

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.