(1)The Reserve Bank may—(a)caution or prohibit banking companies generally or any banking company in particular against entering into any particular transaction or class of transactions, and generally give advice to any banking company;(b)on a request by the companies concerned and subject to the provisions of section 45, assist, as intermediary or otherwise, in proposals for the amalgamation of such banking companies;(c)give assistance to any banking company by means of the grant of a loan or advance to it under clause (3) of sub section (1) of section 18 of the Reserve Bank of India Act, 1934;(d)during the course, or after the completion, of any inspection of a banking company under section 35, by order in writing, require the company—(i)to call a meeting of its directors for the purpose of considering any matter arising in the course of or out of such inspection or of meeting an officer of the Reserve Bank to discuss any such matter;(ii)to make, within such time as may be specified in the order, such changes in its management as the Reserve Bank may consider necessary in consequence of the state of affairs disclosed during or by the inspection.(2)The Reserve Bank shall make an annual report to the Central Government on the trend and progress of banking in the country svith particular reference to its activities under clause (2) of section 17 of the Reserve Bank of India Act, 1934, including in such report its suggestions, if any, for the strengthening of banking business throughout the country.(3)The Reserve Bank may appoint such staff at such places as it considers necessary for the scrutiny of the returns, statements and information furnished by banking companies under this Act, and generally to ensure the efficient performance of its functions under this Act.
