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

The Joint Committee under Section 45Y of the RBI Act, 1934 is to meet on a disputed hybrid instrument. Who is its ex officio Chairperson and who convenes its meetings?

The Union Finance Minister is the ex officio Chairperson, and the Secretary of the Department of Financial Services in the Ministry of Finance is the convener of the meetings, as provided in Section 45Y(1) and (2).

  1. AChairperson is the RBI Governor; convener is the SEBI Chairman
  2. BChairperson is the Union Finance Minister; convener is the Secretary, Department of Financial ServicesCorrect
  3. CChairperson is the Secretary, Department of Economic Affairs; convener is the RBI Governor
  4. DChairperson is the Union Finance Minister; convener is the IRDAI Chairperson

Explanation

Section 45Y(1)(a) makes the Union Finance Minister ex officio Chairperson, with the RBI Governor as Vice-Chairperson. Section 45Y(2) makes the Secretary, Department of Financial Services the convener. The other options mix up these roles.

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