Multiple choice

Which of the following statements is/are false?

(i) The maximum period of office that may be held continuously by an ordinary director in a banking company is eight years. (ii) The banking company or the person affected by the RBI order may appeal to the central government within 90 days. (iii) At least 71% of the directors should have the qualification prescribed under section 10A (2) of Banking Regulation Act. (iv) A director of a banking company should not have substantial interest in any other company.

  1. (i) and (ii)

  2. (ii) and (iii)

  3. (iii) and (iv)

  4. (ii) and (iv)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct statements are The banking company or the person affected by the RBI order may appeal to the central government within 30 days. At least 51% of the directors should have the qualification prescribed under section 10A(2) of Banking Regulation Act. The maximum period of office that may be held continuously by an ordinary director in a banking company is eight years. A director of a banking company should not have substantial interest in any other company.  

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