Under Section 36AA(4) of the Banking Regulation Act,

Solution

Section 36AA(4) provides that where an order of removal is made under sub-section (1), the removed person shall cease to be chairman, director, chief executive officer or other officer or employee of the banking company and shall not, directly or indirectly, be concerned with or take part in the management of any banking company for such period not exceeding five years as may be specified in the order. The three-year figure appears separately in sub-section (7)(a), which sets the initial term for a person appointed by the Reserve Bank as replacement, extendable by further periods not exceeding three years at a time. The RBI must afford the person a reasonable opportunity to make a representation before passing the removal order under sub-section (1).