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An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act, however, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to ___________.
  • a)
    Less than twenty-five per cent of debt
  • b)
    Not less than twenty-five per cent of debt
  • c)
    More than twenty-five per cent of debt
  • d)
    Such amount as the RBI may specify in this behalf
  • e)
    None of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
An appeal can only be entertained by the Appellate Tribunal only if th...
Explanation:

The given statement is related to the provisions of filing an appeal with the Appellate Tribunal under the Act. Let's break down the statement and understand its meaning:

- An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act: This means that before filing an appeal with the Appellate Tribunal, the borrower needs to deposit a certain amount as specified under the Act. This amount is required to be deposited to ensure that the borrower is serious about the appeal and to prevent frivolous appeals.

- However, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to not less than twenty-five per cent of debt: This means that the Appellate Tribunal has the authority to reduce the amount which needs to be deposited by the borrower. The reduction can be up to a minimum of twenty-five per cent of the debt amount. The Appellate Tribunal can exercise this power by providing written reasons for the reduction.

Summary:

In summary, the correct answer is option 'B' - Not less than twenty-five per cent of debt. The Appellate Tribunal has the power to reduce the amount to be deposited by the borrower, but it cannot be less than twenty-five per cent of the debt amount. This provision ensures that the borrower has a stake in the appeal and discourages frivolous appeals.
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Community Answer
An appeal can only be entertained by the Appellate Tribunal only if th...
Section 18 Appeal to Appellate Tribunal - No appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty percent of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less. Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five percent of debt as referred herein above.
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Directions: Read the passage carefully and select the best answer to each question out of the given five alternatives.In a bid to ensure timely support to depositors of stressed banks, the government may bring amendment to DICGC Act in the monsoon session with the objective to provide account holders easy and time-bound access to funds to the extent of the deposit insurance cover. Last year, the government raised insurance cover on deposit five-folds to Rs 5 lakh with a view to provide support to depositors of ailing lenders like Punjab and Maharashtra Co-operative (PMC) Bank. Following the collapse of PMC Bank, Yes Bank and Lakshmi Vilas Bank NSE 4.79 % too came under stress leading to restructuring by the regulator and the government.The amendment to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961 is the budget announcement made by the Finance Minister and the Bill is almost ready, sources said. It is expected that the Bill will be tabled in the upcoming monsoon session after being vetted by the Union Cabinet, sources added. Once the Bill becomes the law, it will provide immediate relief to thousands of depositors who had their money parked in stressed lenders such as PMC Bank and other small cooperative banks.As per the current provisions, the deposit insurance of up to Rs 5 lakh comes into play when the licence of a bank is cancelled and liquidation process starts. DICGC, a wholly-owned subsidiary of the Reserve Bank of India, provides insurance cover on bank deposits. Finance Minister Nirmala Sitharaman in the Budget speech in February said the government had approved an increase in the Deposit Insurance cover from Rs 1 lakh to Rs 5 lakh for bank customers last year. It could not be presented in the Budget session due to curtailment of the last session following the spread of the second wave of COVID-19 pandemic.It is to be noted that the enhanced deposit insurance cover of Rs 5 lakh is effective from February 4, 2020. The increase was done after a gap of 27 years as it was static since 1993. The cover is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI. With increased insurance cover, the banks are paying a higher premium of 12 paise against 10 paise per Rs 100 deposited without any additional burden on account holders. The deposit insurance scheme covers all banks operating in India, including private sector, cooperative, and even branches of foreign banks. There are some exemptions such as deposits of foreign governments, deposits of central and state governments, and inter-bank deposits.It can be recalled that way back in 2009, the Raghuram Rajan committee on financial sector reforms had recommended strengthening the capacity of the DICGC, a more explicit system of prompt, corrective action, and making deposit insurance premia more risk-based.Q. Which of the following is a synonym of the word curtailment?

Directions: Read the passage carefully and select the best answer to each question out of the given five alternatives.In a bid to ensure timely support to depositors of stressed banks, the government may bring amendment to DICGC Act in the monsoon session with the objective to provide account holders easy and time-bound access to funds to the extent of the deposit insurance cover. Last year, the government raised insurance cover on deposit five-folds to Rs 5 lakh with a view to provide support to depositors of ailing lenders like Punjab and Maharashtra Co-operative (PMC) Bank. Following the collapse of PMC Bank, Yes Bank and Lakshmi Vilas Bank NSE 4.79 % too came under stress leading to restructuring by the regulator and the government.The amendment to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961 is the budget announcement made by the Finance Minister and the Bill is almost ready, sources said. It is expected that the Bill will be tabled in the upcoming monsoon session after being vetted by the Union Cabinet, sources added. Once the Bill becomes the law, it will provide immediate relief to thousands of depositors who had their money parked in stressed lenders such as PMC Bank and other small cooperative banks.As per the current provisions, the deposit insurance of up to Rs 5 lakh comes into play when the licence of a bank is cancelled and liquidation process starts. DICGC, a wholly-owned subsidiary of the Reserve Bank of India, provides insurance cover on bank deposits. Finance Minister Nirmala Sitharaman in the Budget speech in February said the government had approved an increase in the Deposit Insurance cover from Rs 1 lakh to Rs 5 lakh for bank customers last year. It could not be presented in the Budget session due to curtailment of the last session following the spread of the second wave of COVID-19 pandemic.It is to be noted that the enhanced deposit insurance cover of Rs 5 lakh is effective from February 4, 2020. The increase was done after a gap of 27 years as it was static since 1993. The cover is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI. With increased insurance cover, the banks are paying a higher premium of 12 paise against 10 paise per Rs 100 deposited without any additional burden on account holders. The deposit insurance scheme covers all banks operating in India, including private sector, cooperative, and even branches of foreign banks. There are some exemptions such as deposits of foreign governments, deposits of central and state governments, and inter-bank deposits.It can be recalled that way back in 2009, the Raghuram Rajan committee on financial sector reforms had recommended strengthening the capacity of the DICGC, a more explicit system of prompt, corrective action, and making deposit insurance premia more risk-based.Q. Which of the following is an antonym of the word 'ailing'?

An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act, however, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to ___________.a)Less than twenty-five per cent of debtb)Not less than twenty-five per cent of debtc)More than twenty-five per cent of debtd)Such amount as the RBI may specify in this behalfe)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act, however, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to ___________.a)Less than twenty-five per cent of debtb)Not less than twenty-five per cent of debtc)More than twenty-five per cent of debtd)Such amount as the RBI may specify in this behalfe)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act, however, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to ___________.a)Less than twenty-five per cent of debtb)Not less than twenty-five per cent of debtc)More than twenty-five per cent of debtd)Such amount as the RBI may specify in this behalfe)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An appeal can only be entertained by the Appellate Tribunal only if the borrower has deposited with the Appellate Tribunal the amount as specified under the Act, however, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce such amount to ___________.a)Less than twenty-five per cent of debtb)Not less than twenty-five per cent of debtc)More than twenty-five per cent of debtd)Such amount as the RBI may specify in this behalfe)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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