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Home › Indian Laws › Banking Regulation Act, 1949 › Section 36AA
Banking Regulation Act, 1949 · Section guide

Section 36AA: RBI power to remove managerial and other persons from office

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 36AA — RBI power to remove managerial and other persons from office. Allows RBI to remove specified managerial/other persons where the statutory public-interest/depositor/proper-management. Grounds are satisfied, after the prescribed opportunity; the removal order carries consequential disqualification/appointment effects.

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 to remove specified managerial/other persons where the statutory public-interest/depositor/proper-management grounds are satisfied, after the prescribed opportunity.

Condition / limitation

the removal order carries consequential disqualification/appointment effects.

Source and effective-date control

Apply the wording of Section 36AA that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Explain removal grounds, hearing, interim restrictions, appeal and consequences with exact timelines.

Evidence / working-paper checklist

  • Section 36AA evidence: board and committee composition register.
  • Section 36AA evidence: fit-and-proper / experience / conflict declarations.
  • Section 36AA evidence: appointment, removal or RBI approval correspondence.
  • Section 36AA evidence: minutes recording abstention, approval and effective dates.

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

Common mistakes to avoid

  • For Section 36AA, avoid counting titles instead of checking statutory experience/independence conditions.
  • For Section 36AA, avoid implementing an appointment before a required RBI approval takes effect.
  • For Section 36AA, avoid failing to record conflicts, abstentions or tenure calculations.

Related sections inside the Act

Section 36AB — RBI power to appoint additional directorsSection 36AC — Part IIA to override other lawsSection 36ACA — Supersession of Board of Directors in certain casesSection 36 — Further powers and functions of Reserve BankSection 36A — Certain provisions not to apply to certain banking companies

Use these links to read Section 36AA 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 36AA 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 36AA 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.