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      Question

      Under Section 45-IE of the RBI Act, 1934, the Bank may

      supersede the Board of Directors of a non-banking financial company (other than a Government company) for a total period not exceeding how long?
      A Three years Correct Answer Incorrect Answer
      B Two years Correct Answer Incorrect Answer
      C Five years Correct Answer Incorrect Answer
      D Seven years Correct Answer Incorrect Answer
      E Ten years Correct Answer Incorrect Answer

      Solution

      Section 45-IE(1) empowers the Bank, in the public interest or for proper management or financial stability, to supersede the Board of Directors of a non-banking financial company (other than a Government company) for a period not exceeding five years, which may be extended from time to time, so however that the total period shall not exceed five years. On supersession, the Bank appoints an Administrator under Section 45-IE(2). The maximum total period of supersession is five years.

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