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

Section 36AC: Part IIA to override other laws

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 36AC — Part IIA to override other laws. Makes Part IIA prevail over inconsistent laws, contracts, memorandum/articles and resolutions so that RBI management-control. Action cannot be defeated by private governance arrangements.

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

Makes Part IIA prevail over inconsistent laws, contracts, memorandum/articles and resolutions so that RBI management-control action cannot be defeated by private governance arrangements.

Condition / limitation

How to read the provisionSection 36AC: read the operative proposition with its defined terms and cross-references in the official Act.

Timing / amount / process

Boundary of the ruleDo not expand Section 36AC by analogy; distinguish statutory text from stricter policy or later RBI requirements.

Professional application

Identify the exact Part IIA overriding effect and compensation consequences.

Evidence / working-paper checklist

  • Section 36AC evidence: board and committee composition register.
  • Section 36AC evidence: fit-and-proper / experience / conflict declarations.
  • Section 36AC evidence: appointment, removal or RBI approval correspondence.
  • Section 36AC 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 36AC, avoid counting titles instead of checking statutory experience/independence conditions.
  • For Section 36AC, avoid implementing an appointment before a required RBI approval takes effect.
  • For Section 36AC, avoid failing to record conflicts, abstentions or tenure calculations.

Related sections inside the Act

Section 36AA — RBI power to remove managerial and other persons from officeSection 36AB — RBI power to appoint additional directorsSection 36ACA — Supersession of Board of Directors in certain casesSection 36AD — Punishments for certain activities in relation to banking companies

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