Control over organization of Banks
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.
Which section of the Banking Regulation Act, 1949 deals with the prohibition on employment of managing agents by banks?
Section 10 of the Banking Regulation Act, 1949 prohibits banks from employing or being managed by managing agents, ensuring direct accountability to the board.
What is the maximum age limit prescribed by RBI for a bank's Managing Director & CEO?
70 years is the maximum age limit prescribed.
What is the minimum number of directors required on the board of a banking company under the Banking Regulation Act, 1949?
Under Section 10A of the Banking Regulation Act, 1949, a banking company's board must have at least 51% of its directors with professional expertise in banking, finance, law, accountancy, or economics.
Which Act governs the control over the organisation of banking companies in India?
The Banking Regulation Act, 1949 governs banking company organisation.
Which authority grants a licence to a banking company to commence banking operations in India?
The Reserve Bank of India (RBI) grants a licence under Section 22 of the Banking Regulation Act, 1949 to banking companies to commence or carry on banking business in India.
What is the minimum number of whole-time directors required in a private sector bank as per RBI?
At least one whole-time director is required.
Under the Banking Regulation Act, 1949, what is the maximum percentage of paid-up capital a bank director can hold?
Under Section 20 of the Banking Regulation Act, 1949, a director of a bank cannot hold shares exceeding 1% of the paid-up capital of the bank.
What is the maximum tenure for an independent director on a bank's board under RBI guidelines?
Maximum tenure is 8 years continuously for independent directors.
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