Skip to content

CS Professional · Banking and Insurance - Laws and Practice · Banking Operations

RBI cancels the licence of Kaveri Bank Ltd on 1 March after finding that its affairs were being conducted detrimentally to depositors, and communicates the decision to the bank on 5 March. Kaveri Bank wishes to challenge it. Which course is correct?

Kaveri Bank may appeal to the Central Government within thirty days from the date the decision was communicated, which is 5 March. The period does not run from the date of the decision itself. The decision becomes final only after the appeal is decided or if none is filed.

  1. AAppeal to the Central Government within thirty days from 5 MarchCorrect
  2. BAppeal to the Central Government within thirty days from 1 March
  3. CAppeal to the High Court within sixty days from 5 March
  4. DNo challenge is possible because the decision is final immediately

Explanation

Under section 22(5), the aggrieved banking company may appeal to the Central Government within thirty days from the date the decision is communicated to it, here 5 March. Time does not run from the date of the decision. Finality under section 22(6) attaches only after the appeal is decided or if no appeal is made.

Did you get it right without looking?

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

Practise Banking OperationsFree diagnostic mock

More Banking Operations questions