📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Section 30A of the SARFAESI Act (inserted by the 2016

      Amendment) empowers the adjudicating authority to impose penalties on an ARC or person failing to comply with RBI directions. What is the maximum penalty that can be imposed under Section 30A(1)?
      A Rs. 50 lakh or twice the amount involved, whichever is more Correct Answer Incorrect Answer
      B Rs. 10 lakh as a flat penalty only Correct Answer Incorrect Answer
      C Rs. 5 crore with continuing penalty of Rs. 5 lakh per day Correct Answer Incorrect Answer
      D Rs. 25 lakh or thrice the amount involved, whichever is more Correct Answer Incorrect Answer
      E Rs. 1 crore or twice the amount involved where quantifiable, whichever is more; plus Rs. 1 lakh per day for continuing default Correct Answer Incorrect Answer

      Solution

      Section 30A(1) provides that where an ARC or person fails to comply with any direction issued by the RBI under the Act, the adjudicating authority may impose a penalty not exceeding Rs. 1 crore or twice the amount involved in such failure (where the amount is quantifiable), whichever is more. Where the failure is a continuing one, a further penalty not exceeding Rs. 1 lakh per day (after the first day) may be imposed during which the default continues. The penalty must be paid within 30 days from the notice. If an ARC fails to pay within the specified period, the adjudicating authority may cancel its registration after giving an opportunity to be heard.

      Practice Next
      More Banking Related Laws Questions
      ask-question