📝 One-liners · 65 cards
CONTROL OVER ORGANISATION OF BANKS
Which authority grants a licence to a banking company to carry on banking business in India?
The Reserve Bank of India (RBI) grants a licence under Section 22 of the Banking Regulation Act, 1949. No banking company can commence or carry on banking business in India without such a licence.
What is the minimum number of directors required on the Board of a banking company under the Banking Regulation Act?
At least three directors must be on the Board.
What is the minimum paid-up capital requirement for a new bank seeking a licence from RBI to operate in India?
RBI sets the minimum paid-up capital requirement as part of its licensing conditions. As per the Banking Regulation Act and RBI guidelines, it must be adequate to ensure the bank's viability and depositor protection.
Under Section 12 of the Banking Regulation Act, what is the maximum voting right a shareholder can exercise in a private sector bank?
Maximum voting right is capped at 26 percent.
🔒
Unlock 65 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for CONTROL OVER ORGANISATION OF BANKS.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days