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

      Question

      Under Section 45-ID of the RBI Act, 1934, a director

      removed from office may be barred from being concerned with the management of any non-banking financial company for a period not exceeding how long at a time?
      A Five years Correct Answer Incorrect Answer
      B Three years Correct Answer Incorrect Answer
      C Four years Correct Answer Incorrect Answer
      D Two years Correct Answer Incorrect Answer
      E Seven years Correct Answer Incorrect Answer

      Solution

      Section 45-ID empowers the Bank, in the public interest or to prevent detrimental conduct, to remove a director (other than of a Government-owned NBFC) from office by order. Under Section 45-ID(3), such a director shall cease to be a director and shall not be concerned with the management of any non-banking financial company for such period not exceeding five years at a time as may be specified in the order. The maximum bar period is therefore five years at a time.

      Practice Next
      More Banking Related Laws Questions
      ask-question