CAIIB BRBL LIVE Class 5 By Ashish Sir
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of the Banking Regulation Act, 1949?
The Banking Regulation Act, 1949 aims to regulate and supervise the business of banking companies in India to ensure the stability, soundness, and proper functioning of the banking system.
What is the minimum net worth requirement for a banking company to open a branch in India?
RBI prescribes net worth via licensing norms under BR Act.
Under the Banking Regulation Act, what is the minimum paid-up capital requirement for a new bank to commence banking business?
A banking company requires a minimum paid-up capital and reserves as prescribed by the RBI; the Act empowers RBI to stipulate capital adequacy norms to ensure banks are financially sound before commencing operations.
What does Section 17 of the Banking Regulation Act mandate regarding reserve funds?
Banks must transfer 20% of net profit to reserve fund annually.
What does Section 5(b) of the Banking Regulation Act, 1949 define as 'banking'?
Section 5(b) defines 'banking' as accepting deposits of money from the public for the purpose of lending or investment, repayable on demand or otherwise, and withdrawable by cheque, draft, or otherwise.
Which authority grants and revokes licences for banking companies under the BR Act?
Reserve Bank of India grants and revokes banking licences.
Which section of the Banking Regulation Act prohibits a banking company from paying any dividend until all capitalised expenses are written off?
Section 15 of the Banking Regulation Act, 1949 prohibits a banking company from paying any dividend on its shares until all capitalised expenses, including preliminary expenses and share-selling commissions, are fully written off.
What is the meaning of 'secured creditor' under the SARFAESI Act, 2002?
Any bank or financial institution holding security interest over assets.
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