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?

Q: Answer-Under Section 45-ID of the RBI Act, 1934, a director removed from office may be barred from being co...

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-ID3, 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.