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CS Professional · Banking and Insurance - Laws and Practice · Overview of Indian Banking System

Anil is appointed as an auditor of Godavari Bank Ltd, a banking company. Under Section 46A of the Banking Regulation Act, 1949, how is he treated?

Anil is deemed a public servant for the purposes of Chapter IX of the Indian Penal Code. Section 46A expressly names auditors, along with directors, managing directors, liquidators, managers and other employees of a banking company, so his external role gives no exemption.

  1. AHe is deemed a public servant for the purposes of Chapter IX of the Indian Penal CodeCorrect
  2. BHe is treated as a public servant only if he is a whole-time chairman
  3. CHe is exempt because auditors are external to the bank
  4. DHe is a public servant only for tax purposes

Explanation

Section 46A deems every chairman appointed on a whole-time basis, managing director, director, auditor, liquidator, manager and any other employee of a banking company a public servant for Chapter IX of the Indian Penal Code. Auditors are expressly named, so the whole-time chairman condition does not apply to him.

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