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Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q132: Section 29A of the IBC renders certain persons ineligible to be Resolution Applicants. Which of the following is NOT a ground for disqualification under Section 29A?

A
The person is a wilful defaulter in accordance with RBI guidelines.
B
The person has been convicted for any offence punishable with imprisonment for two years or more.
C
The person is a related party to a person who has a non-performing asset account for over one year.
D
The person has previously served as an independent director on the board of a solvent company.
✅ Correct Answer: D
Section 29A Intent: This section prevents "backdoor entry" of defaulting promoters buying back their own assets at a discount.
Disqualifications: A, B, and C are valid grounds for disqualification.
A wilful defaulter, a convict for specific offences, or a person connected to an NPA account held for over one year cannot bid.
The Exception: Merely serving as a director is not a disqualification.
Section 29A focuses on malfeasance or connection to default, not general board service.