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

A reference on a hybrid instrument was made to the Joint Committee on 10 March. By when must the Joint Committee give its decision to the Central Government under Section 45Y(4) of the RBI Act?

The Joint Committee must give its decision to the Central Government within three months from the date of reference under Section 45Y(4). A reference made on 10 March therefore has to be decided by 10 June.

  1. AWithin one month, by 10 April
  2. BWithin two months, by 10 May
  3. CWithin three months, by 10 JuneCorrect
  4. DWithin six months, by 10 September

Explanation

Section 45Y(4) requires the Joint Committee to give its decision to the Central Government within three months from the date of the reference. Three months from 10 March ends on 10 June. It follows the procedure it considers expedient.

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