Banking Regulation Act, 1949 · Section guide
Section 56: Act to apply to co-operative societies subject to modifications
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 56 — Act to apply to co-operative societies subject to modifications. Applies the Act to co-operative banks through an extensive set of substitutions,. omissions and adaptations; it must be read line-by-line for co-operative-bank advice. The 2025 amendment also updates the section 18/fortnight adaptation from 15 December 2025. And makes connected definition changes.
Official statute linkedProvision-specific anatomyPractical case + evidence file2025 amendment mapped
Effective-date control — 15 December 2025. Co-operative-bank adaptations updated for definition/cash-reserve fortnight mechanics. For an event that straddles this date, the working paper should show the pre/post amendment position rather than treating the current wording as historically universal.
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Applies the Act to co-operative banks through an extensive set of substitutions, omissions and adaptations.
Condition / limitation
it must be read line-by-line for co-operative-bank advice. The 2025 amendment also updates the section 18/fortnight adaptation from 15 December 2025 and makes connected definition changes.
Source and effective-date control
Apply the wording of Section 56 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.
Professional application
S05/S06 with a full cooperative adaptation matrix and bank-class-specific operational sources.
Evidence / working-paper checklist
- Section 56 evidence: legal classification and co-operative registration details.
- Section 56 evidence: section 56 substitution/omission mapping.
- Section 56 evidence: applicable co-operative-bank Rule/RBI direction.
- Section 56 evidence: return, approval or board evidence required under the modified provision.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 56, avoid copying the commercial-bank text without applying section 56.
- For Section 56, avoid using a commercial-bank rule where the co-operative-bank rule modifies the process.
- For Section 56, avoid failing to identify the bank class and competent supervisory authority.
Linked Rules, RBI directions, notifications and forms
Linked instruments keep their own legal basis; they are not attributed to Section 56 unless the official instrument says so.
Related sections inside the Act
Use these links to read Section 56 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: read Section 56 in the DFS/India Code text together with the mapped 2025 amending Act and commencement date.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 56 on the event date.
Primary official sources
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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.