REGULATION OF BANKING BUSINESS IMP QUES
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 legislation governing the regulation of banking business in India?
The Banking Regulation Act, 1949 is the primary legislation that governs the regulation of banking business in India, providing RBI with powers to supervise, control, and regulate banks.
What is the minimum capital requirement for foreign banks opening branches in India?
Foreign banks need minimum USD 25 million per branch.
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 it to give directions in the public interest or to prevent banking company affairs from being conducted detrimental to depositors.
Under which section of the Banking Regulation Act can RBI appoint additional directors?
Section 36AB empowers RBI to appoint additional directors.
What is the minimum paid-up capital requirement for a new private sector bank in India as per RBI guidelines?
A new private sector bank must have a minimum paid-up voting equity capital of Rs. 500 crore as per RBI's licensing guidelines.
What is the provision under Section 35B of the Banking Regulation Act?
Section 35B requires RBI approval for appointment of bank CEOs.
What does the term 'Scheduled Bank' mean under RBI Act, 1934?
A Scheduled Bank is a bank included in the Second Schedule of the RBI Act, 1934, which satisfies conditions such as having paid-up capital and reserves of at least Rs. 5 lakh and conducting its affairs in a manner not detrimental to depositors' interests.
What is the maximum percentage of voting rights an individual can exercise in a private bank?
An individual can exercise maximum 26% voting rights in a private bank.
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