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According to the Banking Regulation Act, which section deals with the power of the Reserve Bank to remove managerial and other persons from office?
According to the Banking Regulation Act, which section deals with the power of the Reserve Bank to remove managerial and other persons from office?
What is the primary purpose of Section 20 of the Banking Regulation Act?
What is the primary purpose of Section 20 of the Banking Regulation Act?
Which section of the Banking Regulation Act deals with the punishment for certain activities in relation to banking companies?
Which section of the Banking Regulation Act deals with the punishment for certain activities in relation to banking companies?
What is the main objective of Section 27 of the Banking Regulation Act?
What is the main objective of Section 27 of the Banking Regulation Act?
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Which section of the Banking Regulation Act deals with the establishment of the Depositor Education and Awareness Fund?
Which section of the Banking Regulation Act deals with the establishment of the Depositor Education and Awareness Fund?
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What is the primary function of the Reserve Bank according to Section 35A of the Banking Regulation Act?
What is the primary function of the Reserve Bank according to Section 35A of the Banking Regulation Act?
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According to the Banking Regulation Act, which section deals with the power of the Reserve Bank to appoint additional directors?
According to the Banking Regulation Act, which section deals with the power of the Reserve Bank to appoint additional directors?
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What is the main objective of Section 29 of the Banking Regulation Act?
What is the main objective of Section 29 of the Banking Regulation Act?
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What is the provision for a chairman of the Board of directors appointed on a whole-time basis or a managing director under section 10C?
What is the provision for a chairman of the Board of directors appointed on a whole-time basis or a managing director under section 10C?
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What is the effect of appointments or removals made under section 10A or section 10B?
What is the effect of appointments or removals made under section 10A or section 10B?
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Who appoints a chairman of the Board of directors on a whole-time basis or a managing director under section 10B?
Who appoints a chairman of the Board of directors on a whole-time basis or a managing director under section 10B?
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What is the provision for a director of a banking company appointed by the Reserve Bank under section 10A?
What is the provision for a director of a banking company appointed by the Reserve Bank under section 10A?
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What is the effect of section 10A, 10B and 10BB on other laws and contracts?
What is the effect of section 10A, 10B and 10BB on other laws and contracts?
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What is the provision for a chairman of the Board of directors who is appointed on a whole-time basis or a managing director under section 10B?
What is the provision for a chairman of the Board of directors who is appointed on a whole-time basis or a managing director under section 10B?
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Who is entitled to claim compensation for the loss or termination of office under section 10D?
Who is entitled to claim compensation for the loss or termination of office under section 10D?
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Under which section is the provision that a chairman of the Board of directors who is appointed on a whole-time basis or a managing director shall not be required to hold qualification shares?
Under which section is the provision that a chairman of the Board of directors who is appointed on a whole-time basis or a managing director shall not be required to hold qualification shares?
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What is the effect of the commencement of the Banking Companies (Amendment) Act, 1959?
What is the effect of the commencement of the Banking Companies (Amendment) Act, 1959?
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What forms of business can a banking company engage in, in addition to banking?
What forms of business can a banking company engage in, in addition to banking?
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What is one of the responsibilities of a banking company acting as an agent?
What is one of the responsibilities of a banking company acting as an agent?
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What is the role of a banking company in public and private loans?
What is the role of a banking company in public and private loans?
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What business can a banking company carry out in relation to property?
What business can a banking company carry out in relation to property?
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What is one of the roles of a banking company in trusts?
What is one of the roles of a banking company in trusts?
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What benefits can banking companies provide to their employees or ex-employees?
What benefits can banking companies provide to their employees or ex-employees?
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What is the effect of a provision in the memorandum or articles that is repugnant to this Act?
What is the effect of a provision in the memorandum or articles that is repugnant to this Act?
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What is one of the powers of a banking company in relation to securities?
What is one of the powers of a banking company in relation to securities?
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What is one of the forms of business that a banking company can engage in?
What is one of the forms of business that a banking company can engage in?
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Study Notes
Section 10B Provisions
- The provisions of Section 10B apply to the Chairman of the Board of Directors appointed on a whole-time basis or a Managing Director appointed by the Reserve Bank.
- The Chairman and certain directors are not required to hold qualification shares in the banking company.
Section 10D
- The provisions of Sections 10A, 10B, and 10BB override all other laws, contracts, etc.
- Any appointment or removal of a director, Chairman, or Managing Director in pursuance of Section 10A or Section 10B shall have effect, notwithstanding anything contained in any law or contract.
Business of Banking Companies
- Banking companies can engage in various forms of business in addition to banking, including:
- Borrowing, raising, or taking up money
- Lending or advancing money
- Drawing, making, accepting, discounting, buying, selling, collecting, and dealing in bills of exchange, hoondees, promissory notes, etc.
- Buying, selling, and dealing in bullion and specie
- Buying and selling of foreign exchange
- Acquiring, holding, issuing on commission, underwriting, and dealing in stock, funds, shares, debentures, etc.
- Acting as agents for Governments, local authorities, or other persons
- Contracting for public and private loans and negotiating and issuing the same
- Effecting, insuring, guaranteeing, underwriting, participating in managing and carrying out of any issue of State, municipal, or other loans
- Carrying on and transacting every kind of guarantee and indemnity business
- Managing, selling, and realising any property that may come into possession of the company
- Acquiring and holding and generally dealing with any property or right, title, or interest in any property
- Undertaking and executing trusts
- Undertaking the administration of estates as executor, trustee, or otherwise
- Establishing and supporting or aiding in the establishment and support of associations, institutions, funds, trusts, and conveniences for employees or ex-employees
Other Provisions
- Part IIA: Control over Management
- Part IIAB: Supersession of Board of Directors of Banking Company
- Part IIB: Prohibition of Certain Activities in Relation to Banking Companies
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Description
This quiz is about the provisions related to the chairman of the Board of directors and managing directors in banking companies, as per the Reserve Bank regulations.
