Multiple choice

U/s 9 of Banking Regulation Act, a banking company can hold immovable property other than for its own use for a period of 7 years. But if the banking company fails to do so, RBI may extend this period by ____ years.

  1. 3

  2. 5

  3. 7

  4. Any period on merits of the case

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

No banking company shall hold any immova­ble property howsoever acquired, except such as is required for its own use, for any period exceeding seven years from the acqui­sition thereof or from the commencement of Banking Regulation Act. Provided further that the Reserve Bank may in any particular case extend the aforesaid period of seven years by such period not exceeding five years where it is satisfied that such extension would be in the interests of the depositors of the banking company.