Legal Question in Banking Law in India

As per RBI guidelines the definition of relative means as follows:2.2.7 The 'relative' of a director of the bank shall mean any relative of a director of the bank as indicated hereunder :

A person shall be deemed to be relative of another if and only if, :

(a) they are members of a Hindu Undivided Family; or

(b) they are husband and wife; or

(c) the one is related to the other in any manner indicated below :

i) Father

ii) Mother (including step-mother)

iii) Son (including step-son)

iv) Son's wife

v) Daughter (including step-daughter)

vi) Daughter's husband

vii) Brother (including step-brother)

viii) Brother's wife

ix) Sister (including step-sister)

x) Sister's husband

But as per the Andhra Pradesh Co-Op Societies Act 1964 (APSCS Act 1964) a near relative difinition is:

�Near relative� means father, mother, brother, sister, husband, wife,

son, son-in-law, daughter, daughter-in-law, father-in-law, mother-in-law,

brother-in-law, sister-in-law, nephew and niece;]

Please clarify that can the RBI directives override the APSCS Act 1964 ?


Asked on 12/15/15, 10:55 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

16.12.2015

Dear Sir / Madam,

No, the Reserve Bank of India (RBI) guidelines cannot override the APSCS Act, 1964 because the RBI guidelines apply to the whole of INDIA, whereas the APSCS Act\, 1964 is a State controlled and governed Act.

Regards,

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Answered on 12/16/15, 2:57 am


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