Multiple choice

RBI can remove the chairman or director of a bank under _____ against which appeal can be made to the Central Government within ________ days from date of communication of such order.

  1. RBI Act, 45 days

  2. Banking Regulation Act, 30 days

  3. Banking Regulation Act, 45 days

  4. RBI Act, 30 days

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 36AA, power of Reserve Bank to remove managerial and other per­sons from office, Reserve Bank may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, 2 [any chairman or director] chief executive officer (by whatever name called) or other officer or employee of the banking company. Any person against whom an order of removal has been made, within thirty days from the date of communication to him of the order.