Question

A person is a shareholder (without management control) in a leasing company. Can they be appointed as a director in a PSB?

A No, as leasing is a prohibited activity Correct Answer Incorrect Answer
B Yes, as mere investment without managerial control is allowed Correct Answer Incorrect Answer
C No, unless RBI permits Correct Answer Incorrect Answer
D Yes, only if holding is below 10% Correct Answer Incorrect Answer
E No, as all para-banking involvement is prohibited Correct Answer Incorrect Answer

Solution

The provision clearly distinguishes between active involvement and passive investment. • Managerial control → Disqualified • Only investor → Not disqualified

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