CAIIB BRBL LIVE Class 4 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 banking companies in India to protect depositors' interests and ensure orderly development of the banking sector.
What is the meaning of 'Time Liability' in banking under the Banking Regulation Act?
Liability payable after a fixed period or notice period.
Under which section of the Banking Regulation Act can RBI issue directions to banks?
RBI can issue directions to banks under Section 35A of the Banking Regulation Act, 1949, which empowers RBI to give directions in public interest or in the interest of banking policy.
What is the minimum capital-to-risk-weighted-assets ratio (CRAR) prescribed by RBI for commercial banks?
RBI prescribes a minimum CRAR of 9% for commercial banks.
What does the term 'banking' mean as defined in Section 5(b) of the Banking Regulation Act, 1949?
'Banking' means 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 order.
What does Section 17 of the Banking Regulation Act, 1949 require every banking company to do?
Transfer minimum 20% of net profits to statutory reserve fund annually.
What is the minimum paid-up capital requirement for a new private sector bank in India as per RBI guidelines?
The minimum paid-up capital requirement for a new private sector bank in India is Rs. 500 crore as per the RBI's Licensing Guidelines for new banks.
What is the Cash Reserve Ratio (CRR) and which Act mandates banks to maintain it?
CRR is the cash percentage banks must keep with RBI, mandated under RBI Act 1934.
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