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CS Professional · Banking and Insurance - Laws and Practice · Control over Organization of Banks

The RBI cancels the licence of Deccan Co-Trade Bank Ltd., and the decision is communicated to the bank on 10 March. The bank wishes to challenge it. Which course is consistent with Section 22?

The bank may appeal to the Central Government within thirty days from the date the cancellation decision is communicated. Under Section 22(6), the Central Government's decision on that appeal is final; if no appeal is made, the RBI's decision is final.

  1. AAppeal to the Central Government within thirty days from 10 March; the Central Government's decision is finalCorrect
  2. BAppeal to the Central Government within sixty days from 10 March; its decision may be further appealed
  3. CAppeal to the Reserve Bank's Governor within thirty days
  4. DNo appeal lies; the RBI decision is final in all cases

Explanation

Section 22(5) allows an appeal to the Central Government within thirty days from communication of the cancellation decision. Section 22(6) makes the Central Government's decision final where an appeal is made, or the RBI's decision final if no appeal is made. Option 4 ignores the appeal right.

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