Extras
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 65 rapid-fire Q&A cards.
What is the primary purpose of the Banking Regulation Act, 1949?
The Banking Regulation Act, 1949 provides a framework for the regulation and supervision of banking companies in India, empowering the RBI to control their operations, licensing, and management.
What is the minimum paid-up capital required for a new private sector bank in India?
Minimum paid-up capital requirement is Rs. 500 crore.
What does the term 'banking' mean as defined under Section 5(b) of the Banking Regulation Act, 1949?
Banking means accepting deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order, or otherwise, for the purpose of lending or investment.
What is the maximum period for which a bank can keep an account as NPA before classifying it as doubtful?
An account remains sub-standard for 12 months before becoming doubtful.
Under which Act is the Negotiable Instruments Act, 1881 primarily governed?
The Negotiable Instruments Act, 1881 is a standalone legislation that governs promissory notes, bills of exchange, and cheques, defining their features, liabilities, and dishonour provisions.
What does Section 45 of the Banking Regulation Act, 1949 empower RBI to do?
RBI can order moratorium and scheme of amalgamation for weak banks.
What is the significance of Section 138 of the Negotiable Instruments Act, 1881?
Section 138 makes dishonour of a cheque due to insufficient funds a criminal offence punishable with imprisonment up to two years or a fine up to twice the cheque amount, or both.
What is the legal framework governing microfinance institutions in India?
Microfinance institutions are regulated under NBFC-MFI guidelines by RBI.
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