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      Question

      Section 36AD of the Banking Regulation Act, 1949

      prescribes punishment for certain activities in relation to banking companies, such as obstructing persons from entering a bank, holding violent demonstrations within a bank, or undermining depositor confidence. A person contravening sub-section (1) without reasonable excuse is punishable with imprisonment which may extend to:
      A Three years Correct Answer Incorrect Answer
      B One year Correct Answer Incorrect Answer
      C Six months, or with fine which may extend to one thousand rupees, or with both Correct Answer Incorrect Answer
      D Two years, or with fine, or with both Correct Answer Incorrect Answer
      E Five years and fine Correct Answer Incorrect Answer

      Solution

      Section 36AD(2) provides that whoever contravenes any provision of sub-section (1) without any reasonable excuse shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. Sub-section (1) prohibits obstructing any person from lawfully entering or leaving a bank’s premises, holding violent demonstrations within bank premises that prevent normal business, and acting in any manner calculated to undermine depositor confidence. The provision protects the orderly functioning of banks and the public’s confidence in them, and its definition of “banking company” is extended to include institutions such as the RBI, EXIM Bank and others.

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