Can the Reserve Bank of India (‘RBI’) issue instructions to any banking company to file a CIRP application against a corporate debtor?
Section 35AA, Banking Regulation Act, 1949 states that the Central Government can by order authorize RBI ‘to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default.’ And RBI’s instructions to banking companies under the Banking Regulation Act, 1949 are generally understood to be binding.