Question

    Under what circumstances may the Bank make an order for

    the vesting of a Government security in a person representing a minor or insane individual, according to the Government Securities Ac?
    A When the outstanding principal value of the Government security exceeds rupees one crore Correct Answer Incorrect Answer
    B When the outstanding principal value of the Government security exceeds rupees one lakh Correct Answer Incorrect Answer
    C When the outstanding principal value does not exceed rupees one crore or a lower amount as fixed by the Central Government Correct Answer Incorrect Answer
    D When the outstanding principal value exceeds rupees one crore or a lower amount as fixed by the Central Government Correct Answer Incorrect Answer
    E When the outstanding principal value does not exceed rupees one lakh or a higher amount as fixed by the Central Government Correct Answer Incorrect Answer

    Solution

    Section 10. Government securities belonging to minor or insane person: (2) When a Government security belongs to a minor or a person who is insane and incapable of managing his affairs and the outstanding principal value of the Government security does not in the aggregate exceed rupees one lakh or such higher amount not exceeding rupees one crore as the Central Government may, by a notification in the Official Gazette from time to time, fix, the Bank may make such order as it thinks fit for the vesting of such Government security in such person as it considers represents the minor or insane person.

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