Question

Which section of BR Act that mentions about banking companies to be managed by a whole - time chairman ?

• A. Section 10 A
• B. Section 10 B
• C. Sec.10 A (4)
• D. Sec.10 B (4)

Answer 1

Answer:

B. Section 10 B

BR Act:

• The BR Act and the RBI Act empower the Reserve Bank to supervise and regulate the operations of all types of banks in India.

• Banking Companies Act 1949

• Act 10 of 1949

• Banking Companies Act was passed in : 10-3-1949

• Came into force in : 16-3-1949

• Banking Companies Act was renamed as Banking Regulation Act in : 1966

• Banking Regulation Act was applicable to Co-operative Societies in 1965 and came in to force on 1.3.1966

• Total Number Sections in BR Act - 56

• Total number of Schedules in BR Act - 5

• 5 parts

• 5 Schedules

Section 10B - Banking Companies to be managed by whole -time chairman

• On the commencement of the banking laws (Amendment) Act, 1968, or on coming into existence later on, shall appoint a whole time chairman out of its directors

Section 10BB - 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.

Term of office

• The chairman shall hold office for a term not exceeding five years, he shall be eligible for reappointment or re-election.