Question

Which section provides for the appointment of additional directors by the Reserve Bank?

Q: Answer-Which section provides for the appointment of additional directors by the Reserve Bank?

Section 36AB of the Banking Regulation Act empowers the Reserve Bank of India to appoint one or more additional directors on the board of a banking company. Such appointment is made when RBI considers it necessary in the interest of the banking company or its depositors. These additional directors are not liable to retire by rotation and do not require qualification shares. They help RBI monitor and guide the banks management.