Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q67: To renew an existing FFMC or AD Category-II license, the application for renewal must be submitted to the Reserve Bank of India at least:

A
1 month before the expiry of the license.
B
2 months before the expiry of the license.
C
3 months before the expiry of the license.
D
6 months before the expiry of the license.
✅ Correct Answer: B
1. Timeline: An application for the renewal of a license must be made 2 months before the date of expiry of the license.
2. Consequence of Delay: If the application is not submitted within this window, the license may expire, and the entity would have to stop operations until a fresh license is granted.
3. Validity: Licenses are typically renewed for a period of 1 year (if recent/minor issues or new entity) or 3 years (standard track record). 4. Process: The renewal application must be accompanied by the Statutory Auditor's certificate regarding Net Owned Funds (NOF) and compliance status.