law: Banking Regulation Act, 1949
  35. Inspection
  (1) Notwithstanding anything to the contrary
  
  contained in [section 235 of the Companies Act, 1956 (1 of 1956),] the Reserve
  
  Bank at any time may, and on being directed so to do by the Central Government
  
  shall, cause an inspection to be made by one or more of its officers of any
  
  banking company and its books and accounts; and the Reserve Bank shall supply
  
  to the banking company a copy of its report on such inspection.
  [(1A) (a)
  
  Notwithstanding anything to the contrary contained in any law for the time
  
  being in force and without prejudice to the provisions of sub-section (1), the
  
  Reserve Bank, at any time, may also cause a scrutiny to be made by any or more
  
  of its officers, of the affairs of any banking company and its books and
  
  accounts; and
  (b) A copy of the
  
  report of the scrutiny shall be furnished to the banking company if the banking
  
  company makes a request for the same or if any adverse action is contemplated
  
  against the banking company on the basis of the scrutiny.]
  (2) It shall be the duty of every Director or
  
  other officer 140[or employee] of the banking company to produce to any officer
  
  making an inspection under sub-section (1) 134[or a scrutiny under sub-section
  
  (1A)1 all such books, accounts and other documents in his custody or power and
  
  to furnish him with any statements and information relating to the affairs of
  
  the banking company as the said officer may require of him within such time as
  
  the said officer may specify.
  (3) Any person making an inspection under
  
  sub-section(1) [or a scrutiny under sub-section (1A)] may examine on oath any
  
  Director or other officer [or employee] of the banking company in relation to
  
  its business, and may administer any oath accordingly.
  (4) The Reserve Bank shall, if it has been
  
  directed by the Central Government to cause an inspection to be made, and may,
  
  in any other case, report to the Central Government on any inspection [or
  
  scrutiny] made under this section, and the Central Government, if it is of
  
  opinion after considering the report that the affairs of the company are being
  
  conducted to the detriment of the interests of its depositors, may, after
  
  giving such opportunity to the banking company to make a representation in
  
  connection with the report as, in the opinion of the Central Government, seems
  
  reasonable, by order in writing-
  (a) prohibit the
  
  banking company from receiving fresh deposits;
  (b) direct the Reserve
  
  Bank to apply under section 38 for the winding up of the banking company:
  PROVIDED that the Central Government may defer,
  
  for such period as it may think fit, the passing of an order under this
  
  sub-section, or cancel or modify any such order, upon such terms and conditions
  
  as it may think fit to impose.
  (5) The Central Government may, after giving
  
  reasonable notice to the banking company, publish the report submitted by the
  
  Reserve Bank or such portion thereof as may appear necessary.
  Explanation: For the purposes of this section, the
  
  expression "banking company" shall include-
  (i) in the case of a banking company
  
  incorporated outside India , all its branches in India ; and
  (ii) in the case of a banking company
  
  incorporated in  India-
  (a) all its
  
  subsidiaries formed for the purposes of carrying on the business of banking
  
  exclusively outside India ; and
  (b) all its branches
  
  whether situated in India or outside India .] 110[(6) The powers
  
  exercisable by the Reserve Bank under this section in relation to Regional
  
  Rural Banks may (without prejudice to the exercise of such powers by the Reserve
  
  Bank in relation to any Regional Rural Bank whenever it considers necessary so
  
  to do) be exercised by the National Bank in relation to the Regional Rural
  
  Banks, and accordingly, sub-sections (1) to (5) shall apply in relation to
  
  Regional Rural Banks as if every reference therein to the Reserve Bank included
  
  also a reference to the National Bank.]