CENTRAL REGISTRYCentral

Section 20B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

1[20B. Delegation of powers.--The Central Government may, by notification, delegate its powers and functions under this Chapter, in relation to establishment, operations and regulation of the Central Registry to the Reserve Bank, subject to such terms and conditions as may be prescribed.]

Summary

The Central Government has the authority to hand over its powers related to the Central Registry.
It can delegate the tasks of establishing, operating, and regulating the Central Registry.
This delegation of power is given specifically to the Reserve Bank of India.
The delegation is done through an official notification and comes with specific prescribed terms and conditions.

Practical examples

1The Central Government decides it does not want to manage the day-to-day operations of the Central Registry. It issues a notification shifting this responsibility to the Reserve Bank of India, provided the Bank sends them an annual operations report.

2The Reserve Bank of India creates new software rules for the Central Registry's database, relying on the regulatory powers delegated to it by the Central Government under this provision.

FAQ

1. To which organisation can the Central Government delegate its Central Registry powers?

The Central Government delegates its powers and functions to the Reserve Bank of India.

2. How does the Central Government transfer these powers?

The Central Government delegates its powers by issuing an official notification.

3. Can the Reserve Bank exercise these powers without any restrictions?

No, the delegation is subject to such terms and conditions as may be prescribed by the Central Government.

Test yourself

Q1.Under Section 20B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which entity is granted the delegated powers to operate the Central Registry?

Q2.Under Section 20B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what specific functions concerning the Central Registry can be delegated?

Q3.Under Section 20B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what method must the Central Government use to delegate its powers?

Q4.Section 20B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 allows delegation of powers found in Chapter IV. If the government delegates its powers to the Reserve Bank, how does this affect the Central Registry established under Section 20?

20APreviousSection 20A Integration of registration systems with Central Registry.21NextSection 21 Central Registrar.

←Section 20A Section 21→