Banking Regulation Act 1949
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One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
In which year was the Banking Regulation Act enacted?
The Banking Regulation Act was enacted in 1949 and came into force on 16th March 1949.
What does Section 6 of the Banking Regulation Act specify?
Forms of business a banking company may engage in.
What is the primary objective of the Banking Regulation Act 1949?
The primary objective is to regulate and supervise banking companies in India to protect the interests of depositors and ensure sound banking practices.
Under the Banking Regulation Act, what is the minimum paid-up capital required for a new private sector bank?
RBI prescribes minimum capital; currently Rs 500 crore.
Under Section 5(b) of the Banking Regulation Act, how is 'banking' defined?
'Banking' is defined 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, order, or otherwise.
Which section of the Banking Regulation Act deals with the maintenance of Cash Reserve Ratio?
Section 42 (via RBI Act) read with Section 18 of BR Act.
Which authority has the power to grant a licence to a banking company under the Banking Regulation Act?
The Reserve Bank of India (RBI) has the power to grant a licence to a banking company under Section 22 of the Banking Regulation Act 1949.
What does Section 7 of the Banking Regulation Act restrict regarding the use of certain words?
Only licensed banks can use the word 'bank' in their name.
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