CAIIB · BRBL

CAIIB BRBL LIVE Class 2 By Ashish Sir

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

Q

What is the primary objective of the Banking Regulation Act, 1949?

A

The Banking Regulation Act, 1949 aims to regulate and supervise banking companies in India to protect depositors' interests and ensure orderly development of banking.

Q

What is the full form of BRBL in the CAIIB examination?

A

Banking Regulations and Business Laws

Q

Under which section of the Banking Regulation Act is 'banking' defined?

A

Banking is defined under Section 5(b) of the Banking Regulation Act, 1949 as accepting deposits from the public repayable on demand or otherwise and withdrawable by cheque, draft or order.

Q

Which Act governs the formation and regulation of banking companies in India?

A

Banking Regulation Act, 1949 governs banking companies

Q

What minimum percentage of demand and time liabilities must banks maintain as Cash Reserve Ratio (CRR)?

A

The Reserve Bank of India prescribes the CRR under Section 42 of the RBI Act, 1934; currently there is no statutory floor, but RBI sets it administratively and banks must comply with the prescribed rate.

Q

What is the meaning of 'Banker's Lien' in banking law?

A

Right of bank to retain customer's property against dues

Q

What does Statutory Liquidity Ratio (SLR) require commercial banks to maintain?

A

SLR requires scheduled commercial banks to maintain a prescribed percentage of their net demand and time liabilities (NDTL) in the form of cash, gold, or approved securities under Section 24 of the Banking Regulation Act.

Q

What is a 'Promissory Note' under the Negotiable Instruments Act, 1881?

A

Written unconditional promise to pay a certain sum of money

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