What is Power of Bank to determine policy and issue directions? Section 45 JA of Reserve Bank of India Act 1934
(1) If the Bank is satisfied that, in the public interest or to regulate the financial system of the country to its advantage or to prevent the affairs of any non-banking financial company being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of the non-banking financial company, it is necessary or expedient so to do, it may determine the policy and give directions to all or any of the non-banking financial companies relating to income recognition, accounting standards, making of proper provision for bad and doubtful debts, capital adequacy based on risk weights for assets and credit conversion factors for off balance-sheet items and also relating to deployment of funds by a non-banking financial company or a class of non-banking financial companies or non-banking financial companies generally, as the case may be, and such non-banking financial companies shall be bound to follow the policy so determined and the directions so issued.
(2) Without prejudice to the generality of the powers vested under sub-section (1), the Bank may give directions to non-banking financial companies generally or to a class of non-banking financial companies or to any non-banking financial company in particular as to-
(a) the purpose for which advances or other fund based or non-fund based accommodation may not be made ; and
(b) the maximum amount of advances or other financial accommodation or investment in shares and other securities which, having regard to the paid-up capital, reserves and deposits of the non-banking financial company and other relevant considerations, may be made by that non-banking financial company to any person or a company or to a group of companies.
Section 42 - Cash reserves of scheduled banks to be kept with the Bank
Section 43 - Publication of consolidated statement by the Bank
Section 43A - Protection of action taken in good faith
Section 45 - Appointment of agents
CHAPTER IIIA COLLECTION AND FURNISHING OF CREDIT INFORMATION
Section 45B - Power of Bank to collect credit information
Section 45C - Power to call for returns containing credit information
Section 45D - Procedure for furnishing credit information to banking companies
Section 45E - Disclosure of information prohibited
Section 45F - Certain claims for compensation barred
Section 45H Chapter IIIB not to apply in certain cases
Section 45IA - Requirement of registration and net owned fund
Section 45 IB - Maintenance of percentage of assets
Section 45ID - Power of Bank to remove directors from office
Section 45 JA - Power of Bank to determine policy and issue directions
Section 45 M - Duty of non-banking institutions to furnish statements, etc., required by Bank
Section 45 MA - Powers and duties of auditors
Section 45 MB - Power of bank to prohibit acceptance of deposit and alienation of assets