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?

Q: Answer-Under Section 45-IE of the RBI Act, 1934, the Bank may supersede the Board of Directors of a non-ban...

Section 45-IE1 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-IE2. The maximum total period of supersession is five years.