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

Section 36AF: Central Government power to make scheme

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 36AF — Central Government power to make scheme. Authorises the Central Government to frame a scheme following acquisition, including transfer/vesting, management, capital and other consequential matters; the scheme instrument determines implementation detail.

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

Authorises the Central Government to frame a scheme following acquisition, including transfer/vesting, management, capital and other consequential matters.

Condition / limitation

the scheme instrument determines implementation detail.

Source and effective-date control

Apply the wording of Section 36AF 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 the scheme-making power and each material scheme topic, publication and Parliamentary control.

Working flow

Identify the bank/entity class, event date and the factual trigger for Central Government power to make scheme.
Apply the core Section 36AF rule: Authorises the Central Government to frame a scheme following acquisition, including transfer/vesting, management, capital and other consequential matters.
Test the next condition or limitation: the scheme instrument determines implementation detail.
Reconcile any amount, period, approval, filing or return mentioned in Section 36AF with the supporting record.
Record the conclusion, official source used, effective date and evidence that proves the statutory condition was met or not met.

Evidence / working-paper checklist

  • Section 36AF evidence: RBI/Central Government order or scheme.
  • Section 36AF evidence: service/hearing record and reasons.
  • Section 36AF evidence: board/management handover or acquisition documents.
  • Section 36AF evidence: consequential appointment, compensation or tribunal records.

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

Common mistakes to avoid

  • For Section 36AF, avoid treating an intervention power as an ordinary governance power.
  • For Section 36AF, avoid missing the opportunity/hearing or service step specified by the Act.
  • For Section 36AF, avoid failing to implement the consequential disqualification/vesting/management effects.

Related sections inside the Act

Section 36AD — Punishments for certain activities in relation to banking companiesSection 36AE — Central Government power to acquire undertakings of banking companies in certain casesSection 36AG — Compensation to shareholders of acquired bankSection 36AH — Constitution of Tribunal

Use these links to read Section 36AF 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 36AF 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 36AF on the event date.

Professional reading note

Professional reading note — Section 36AF should be applied as a sequence, not as an isolated heading. Start with the factual trigger

for central government power to make scheme, then test the operative proposition: Authorises the Central Government to frame a scheme following acquisition,

including transfer/vesting, management, capital and other consequential matters. Next confirm the limiting or interaction point: the scheme instrument determines implementation detail. The

working file should be capable of showing why the section applies to the relevant bank or person, which statutory version governs the

event date, and which documentary record proves the conclusion. Useful evidence on this page includes Section 36AF evidence: RBI/Central Government order or

scheme and Section 36AF evidence: service/hearing record and reasons. Read the provision in sequence with Section 36AD — Punishments for certain activities

in relation to banking companies and Section 36AE — Central Government power to acquire undertakings of banking companies in certain cases. This

method keeps the legal answer tied to the provision itself while allowing RBI directions, rules and later instruments to be layered on

only where their own scope actually applies.

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.