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

The Reserve Bank cancelled the licence of Ganga Urban Bank Ltd, and the decision was communicated on 10 March. The bank wants to challenge it. Which statement is correct under Section 22?

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

  1. AIt may appeal to the Central Government within thirty days from 10 March, and that decision is finalCorrect
  2. BIt may appeal to the Central Government within sixty days, and a further appeal lies to the High Court
  3. CIt may appeal to the Reserve Bank Governor within thirty days, and the decision is final
  4. DIt cannot appeal, because the Reserve Bank's cancellation is always final

Explanation

Section 22(5) allows appeal to the Central Government within thirty days from communication of the decision. Section 22(6) makes the Central Government's decision final, or the Reserve Bank's if no appeal is made. Sixty days and a High Court appeal are not provided there.

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