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

Anita, a whole-time chairman, and Rakesh, a part-time chairman who is not appointed on a whole-time basis, serve different banking companies. Considering section 46A of the Banking Regulation Act, 1949, as it currently reads, who is deemed a public servant for the purposes of Chapter IX of the Indian Penal Code?

Anita is deemed a public servant, but Rakesh is not in his capacity as chairman. Section 46A covers a chairman appointed on a whole-time basis, along with managing directors, directors, auditors, liquidators, managers and other employees; the 1994 amendment narrowed the earlier wording about every chairman.

  1. ABoth, because every chairman is covered
  2. BAnita, as a chairman appointed on a whole-time basis, but not Rakesh in that capacityCorrect
  3. CRakesh only, as part-time chairmen are covered
  4. DNeither, since only directors are covered

Explanation

After the 1994 amendment, section 46A covers every chairman who is appointed on a whole-time basis, managing director, director, auditor, liquidator, manager and any other employee. The earlier wording covering every chairman was replaced, so a non-whole-time chairman is not covered as chairman. Rakesh may still be covered if he is a director.

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