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

The Reserve Bank cancelled the licence of Malabar Bank Ltd on 10 March and communicated the decision to it on 12 March. The bank wishes 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 was communicated, which is 12 March, and the Central Government's decision is final. Time runs from communication, not from the date of the decision, and no further appeal exists.

  1. AIt may appeal to the Central Government within thirty days from 12 March, and that decision is finalCorrect
  2. BIt may appeal to the Central Government within thirty days from 10 March, and a further appeal lies to the Reserve Bank
  3. CIt may appeal to the Central Government at any time within six months
  4. DNo appeal lies, since the Reserve Bank's decision is always final

Explanation

Section 22(5) allows appeal to the Central Government within thirty days from the date the decision is communicated, here 12 March, not the date of the decision. Under 22(6) the Central Government's decision on appeal is final. Option two uses the wrong start date and invents a further appeal.

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