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      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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