There are a number of restrictions on employment in banks in India. These restrictions are designed to protect the interests of bank customers and to ensure the soundness of the banking system.
Some of the key restrictions on employment in banks include:
- A person convicted of a crime involving dishonesty or moral turpitude cannot be employed in a bank.
- A person who has been adjudicated insolvent or who has suspended payment to his/her creditors cannot be employed in a bank.
- A person who is related to a director or shareholder of a bank cannot be employed in the same bank.
- A person who has been dismissed from employment in a bank cannot be re-employed in the same bank within a period of five years.
- A person who is a member of the board of directors of a competing bank cannot be employed in another bank.
Multiple Choice Questions
- Which of the following is not a restriction on employment in banks in India?
- A person convicted of a crime involving dishonesty or moral turpitude cannot be employed in a bank.
- A person who has been adjudicated insolvent or who has suspended payment to his/her creditors cannot be employed in a bank.
- A person who is related to a director or shareholder of a bank cannot be employed in the same bank.
- A person who has been dismissed from employment in a bank cannot be re-employed in the same bank within a period of two years.
- A person who is a member of the board of directors of a competing bank cannot be employed in another bank.
- The answer is A person who has been dismissed from employment in a bank cannot be re-employed in the same bank within a period of two years. The correct answer is five years.
- Which of the following is the most common reason for a person being denied employment in a bank?
- A criminal conviction
- Insolvency
- Relationship to a bank director or shareholder
- Dismissal from previous bank employment
- Employment in a competing bank
- The answer is A criminal conviction. A criminal conviction is the most common reason for a person being denied employment in a bank. This is because banks are required to protect the interests of their customers and to ensure that their employees are of good character.
- What is the purpose of the restrictions on employment in banks?
- To protect the interests of bank customers
- To ensure the soundness of the banking system
- To prevent conflicts of interest
- To promote fair competition
- All of the above
- The answer is All of the above. The restrictions on employment in banks are designed to protect the interests of bank customers, to ensure the soundness of the banking system, to prevent conflicts of interest, and to promote fair competition.
Conclusion
The restrictions on employment in banks are important safeguards that help to protect the interests of bank customers and to ensure the soundness of the banking system. These restrictions are enforced by the Reserve Bank of India (RBI), which is the central bank of India.