DEVELOPMENT, REGULATION, AND SUPERVISION, AND RECENT PERFORMANCE OF SCHEDULED COMMERCIAL BAN
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary function of the Reserve Bank of India as the central bank?
The RBI acts as the banker to the government, issues currency, regulates credit and money supply, and supervises the banking system to maintain monetary and financial stability in India.
What is the minimum paid-up capital required for a new private sector bank in India?
Minimum paid-up capital is Rs. 500 crore.
Which Act governs the regulation and supervision of Scheduled Commercial Banks in India?
The Banking Regulation Act, 1949 is the primary legislation governing the regulation, supervision, and control of Scheduled Commercial Banks in India.
What is the maximum permissible promoter shareholding in a new private sector bank after 15 years?
Promoter shareholding must reduce to 15 percent after 15 years.
What criteria must a bank meet to be listed as a Scheduled Commercial Bank under the RBI Act?
A bank must be included in the Second Schedule of the RBI Act, 1934 and must satisfy conditions such as having paid-up capital and reserves of at least Rs. 5 lakh and satisfying the RBI that its affairs are not conducted in a manner detrimental to depositors.
Under which schedule of the RBI Act 1934 are commercial banks listed as scheduled banks?
Banks are listed under the Second Schedule of the RBI Act 1934.
What is the role of the Board for Financial Supervision (BFS) in bank regulation?
The Board for Financial Supervision, constituted by the RBI, exercises supervision over commercial banks, financial institutions, and non-banking financial companies, and meets periodically to review inspection reports and take supervisory decisions.
What is the net worth requirement for a Scheduled Commercial Bank to remain on the second schedule?
Net worth must be at least Rs. 5 lakh.
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