Power to suspend operation of Act (Banking Regulation Act, 1949)
Power to suspend operation of Act is a part of Banking Regulation Act, 1949. The banking regulation act 1949 extends to the entire nation. Other acts are used as secondary to this act e.g. negotiable instrument act, Companies Act 1956. Passed as the Banking Companies Act 1949, it came into force wef 16 May 1949 and changed to Banking Regulations Act 1949 wef 01 March 1966, it was made applicable to Jammu & Kashmir in the year 1956.
Power to suspend operation of Act includes the following:
(1) The Central Government, if on a representation made by the Reserve Bank in this behalf, is satisfied that it is expedient so to do, may by notification in the Official Gazette suspend for such period, not exceeding sixty days, as may be specified in the notification, the operation of all or any of the provisions of this Act, either generally or in relation to any specified banking company.
(2) In a case of special emergency, the Governor of the Reserve Bank of India, or in his absence a Deputy Governor of the Reserve Bank of India nominated by him in this behalf may, by order in writing, exercise the powers of the Central Government under sub-section (1), so however that the period of suspension shall not exceed thirty days, and where the Governor or the Deputy Governor, as the case may be, does so, he shall report the matter to the Central Government forthwith, and the order shall, as soon as may be, be published in the Gazette of India.
(3) The Central Government may, by notification in the Official Gazette, extend from time to time the period of any suspension ordered under sub-section (1) or sub-section (2) for such period, not exceeding sixty days at any one time, as it thinks fit, so however that the total period does not exceed one year.
(4) A copy of any notification issued under sub-section (2) shall be laid on the table of 2 [Parliament] as soon as may be after it is issued.