Section 12. Power of Reserve Bank to determine policy and issue directions

12. Power of Reserve Bank to determine policy and issue directions.— (1) If the Reserve Bank is satisfied that in the public interest or to regulate financial system of the country to its advantage or to prevent the affairs of any[1] [asset reconstruction company] from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such[1] [asset reconstruction company], it is necessary or expedient so to do, it may determine the policy and give directions to all or any[1] [asset reconstruction company] in matters relating to income recognition, accounting standards, making provisions for bad and doubtful debts, capital adequacy based on risk weights for assets and also 1. Subs. by Act 44 of 2016, s. 3, for "securitisation company or reconstruction company" (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid ., for "securitisation company" (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid ., for "reconstruction company" (w.e.f. 1-9-2016). 4. Subs. by s. 3, ibid ., for "qualified institutional buyer" (w.e.f. 1-9-2016). relating to deployment of funds by the[1] [asset reconstruction company], as the case may be, and such company shall be bound to follow the policy so determined and the directions so issued. (2) Without prejudice to the generality of the power vested under sub-section (1), the Reserve Bank may give directions to any[1] [asset reconstruction company] generally or to a class of[2] [asset reconstruction — companies] or to any[1] [asset reconstruction company] in particular as to (a) the type of financial asset of a bank or financial institution which can be acquired and procedure for acquisition of such assets and valuation thereof; (b) the aggregate value of financial assets which may be acquired by any[1] [asset reconstruction company]; 3 [(c) the fee and other charges which may be charged or incurred for management of financial assets acquired by any asset reconstruction company; (d) transfer of security receipts issued to qualified buyers.] 4 `[` 12A. Power of Reserve Bank to call for statements and information . — The Reserve Bank may at any time direct a[1] [asset reconstruction company] to furnish it within such time as may be specified by the Reserve Bank, with such statements and information relating to the business or affairs of such[1] [asset reconstruction company] (including any business or affairs with which such company is concerned) as the Reserve Bank may consider necessary or expedient to obtain for the purposes of this Act.]