Whether RBI has powers to supersede the Board of directors of a Banking Company? If so, what are the powers and duties of Administrator ?

Under Section 36 ACA of Banking Regulations Act, 1949, Reserve Bank of India (RBI) has powers to supersede the Board of Directors of a Banking Company in certain cases. If RBI is of the opinion that it is necessary in the interests of a banking company or its depositors and in consultation with Central Government, through a written order, supersede the Board of Directors of such banking company for a period of not exceeding six months (subject to a maximum period of 12 months) or as specified in the order. Appointment of Administrator Upon superseding the Board of Directors, the RBI (after due consultation with the Central Government) will appoint, an Administrator (not an officer of the Central Government or a State Government) who has experience in law, finance, banking, economics or accountancy for such period as it determines. The Administrator so appointed, is bound to follow directions issued by the RBI in this regard. Consequent to the supersession of the Board of Directors, the Chairman, Managing Director and other Directors have to vacate their offices. No person shall be entitled to claim any compensation for the loss or termination of his office. Powers and Duties of Administrator The Administrator will exercise all powers, discharge functions and perform duties that are applicable under the provisions of the Companies Act or the Banking Regulation Act or any other applicable law in force, until the Board of Directors is reconstituted. The Administrator appointed shall vacate office immediately after the Board of Directors of such banking company has been reconstituted. Committee to assist the Administrator The RBI in consultation with Central government may also appoint a committee of three or more persons who holding meetings. The RBI will specify salary and allowances payable to the Administrator and the members of the committee constituted and the same to be borne by the concerned banking company.