Skip to content

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

Prakash Nair works as a clerk in a branch of Himalaya Bank Ltd., a banking company, and is not a director or manager. He is charged with taking a bribe for sanctioning a loan. How does Section 46A of the Banking Regulation Act, 1949 treat him?

He is deemed a public servant. Section 46A includes any other employee of a banking company, so a clerk falls within it for Chapter IX of the Indian Penal Code, without any test of seniority, cash handling or salary.

  1. ANot a public servant, as only senior officers are covered
  2. BA public servant only if he handles cash
  3. CA public servant only if he is above a prescribed salary
  4. DDeemed a public servant, since any other employee of a banking company is coveredCorrect

Explanation

Section 46A covers any other employee of a banking company along with chairman, directors, auditors, liquidators and managers. No seniority, cash handling or salary test applies, so the options limiting coverage are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Overview of Indian Banking System shows your real accuracy, how long you take and where you lose marks.

Practise Overview of Indian Banking SystemFree diagnostic mock

More Overview of Indian Banking System questions