CAIIB · BRBL

REGULATION OF BANKING BUSINESS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

5 video classes 65 one-liners

Quick revision

One-liners from this chapter

Free sample — 8 of 65 rapid-fire Q&A cards.

Which Act primarily governs the regulation of banking business in India?

The Banking Regulation Act, 1949 is the primary legislation governing banking business in India, providing RBI with comprehensive powers to regulate and supervise banks.

What is the primary objective of banking regulation in India?

To ensure safety, soundness and stability of the banking system.

What is the minimum paid-up capital requirement for a new private sector bank in India?

RBI guidelines require a minimum paid-up capital of Rs. 500 crore for a new private sector bank at the time of commencement of business.

Under which Section of the Banking Regulation Act can RBI appoint additional directors on a bank's board?

Section 36AB empowers RBI to appoint additional directors.

Under Section 22 of the Banking Regulation Act, what is required to carry on banking business?

Every banking company must obtain a licence from the Reserve Bank of India under Section 22 before commencing or carrying on banking business in India.

What is the minimum voting rights an individual can hold in a private sector bank?

Maximum voting rights capped at 26% regardless of shareholding.

What does Section 6 of the Banking Regulation Act specify?

Section 6 specifies the forms of business in which banking companies may engage, including accepting deposits, lending, foreign exchange, safe custody, and other permissible activities.

What does Section 10B of the Banking Regulation Act specify about a bank's management?

Every banking company must have a whole-time chairman.

Unlock all 65 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck

Watch & learn