Multiple choice

RBI can appoint Chairman of a bank

(a) if the office is lying vacant and not filled immediately (b) if in the opinion of RBI, such vacant position is to be against interest of the banking company (c) and such appointment shall be for a maximum period of 5 years (d) and there is provision for re-appointment after the initial period

  1. (a) to (d) all correct

  2. (a), (b) and (d) are correct

  3. (a), (b) and (c) are correct

  4. (b), (c) and (d) are correct
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Power of Reserve Bank to appoint chairman of the Board of Directors appointed on a whole-time basis or a managing director of a banking company: Where the office of a banking company is vacant, the Reserve Bank may, if it is of opinion that the continuation of such vacancy is likely to adversely affect the interests of the banking company, appoint a person eligible under sub-section (4) of section 10B to be so appointed, to be the chairman of the Board of directors appointed on a whole-time basis.

 

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