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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework of Banks

A Joint Committee under section 45Y of the RBI Act, 1934 is to be constituted. Which statement about its composition and working is correct?

The Committee has seven ex officio members, with the Union Finance Minister as Chairperson and the RBI Governor as Vice-Chairperson. The Secretary, Department of Financial Services, is the convener of its meetings under section 45Y(2). The other options misstate the offices or the size.

  1. AThe RBI Governor is Chairperson and the SEBI Chairman is convener
  2. BIt has seven members including the Union Finance Minister as Chairperson; the DFS Secretary is convenerCorrect
  3. CIt has five members and the DEA Secretary is convener
  4. DThe Finance Minister is Vice-Chairperson and the RBI Governor is Chairperson

Explanation

Section 45Y(1) lists seven ex officio members: the Finance Minister as Chairperson, the RBI Governor as Vice-Chairperson, the DEA Secretary, the DFS Secretary, and the IRDAI, SEBI and PFRDA heads. Section 45Y(2) makes the DFS Secretary the convener of meetings. The other options misstate roles or numbers.

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