law: Banking Regulation Act, 1949
  36. Further powers and functions of Reserve
  
  Bank
  (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 44A, 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 (2 of 1934)
  [(d) at any time, if it satisfied that in the
  
  public interest or in the interest of banking company or its depositors it is
  
  necessary so to do,] by order in writing and on such terms and conditions as
  
  may be specified therein:
  (i) require the
  
  banking company to call a meeting of its Directors for the purpose, of considering
  
  any matter relating to or arising out of the affairs of the banking company, or
  
  require an officer of the banking company to discuss any such matter with an
  
  officer of the Reserve Bank.
  (ii) depute one or
  
  more of its officers to watch the proceedings at any meeting of the Board of
  
  Directors of the banking company or of any committee or of any other body
  
  constituted by it; require the banking company to give an opportunity to the
  
  officers so deputed to be heard at such meetings and also require such officers
  
  to send a report of such proceedings to the Reserve Bank;
  (iii) require the
  
  Board of Directors of the banking company or any committee or any other body
  
  constituted by it to give in writing to any officer specified by the Reserve
  
  Bank in this behalf at his usual address all notices of, and other
  
  communications relating to, any meeting of the Board, committee or other body
  
  constituted by it;
  (iv) appoint one or
  
  more of its officers to observe the manner in which the affairs of the banking
  
  company or of its officers or branches are being conducted and make a report
  
  thereon;
  (v) require the
  
  banking company to make, within such time as may be specified in the order,
  
  such changes in the management as the Reserve Bank may consider necessary
  (2) The Reserve Bank shall make an annual
  
  report of the Central Government on the trend and progress of banking in the
  
  country, with particular reference to its activities under clause (2) of
  
  section 17 of the Reserve Bank of India Act, 1934 (2 of 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.