BANKING LAWS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Which Act is the primary legislation governing the regulation of banking companies in India?
The Banking Regulation Act, 1949 is the primary legislation governing banking companies in India, prescribing rules for licensing, management, and operations of banks.
What is the full form of SARFAESI and under which year was it enacted?
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Under which Act was the Reserve Bank of India established?
The Reserve Bank of India was established under the Reserve Bank of India Act, 1934, which also defines its functions, powers, and governance structure.
Under the Banking Regulation Act, 1949, what is the restriction on voting rights of shareholders?
No shareholder can exercise voting rights exceeding 26% of total voting rights
What is the minimum paid-up capital required for a new private sector bank to obtain a banking license in India?
As per RBI guidelines, a new private sector bank must have a minimum paid-up voting equity capital of Rs. 500 crore at the time of commencement of business.
Which section of the Banking Regulation Act, 1949 deals with the appointment of the Board of Directors?
Section 10A deals with the composition and qualifications of the Board of Directors
Which section of the Banking Regulation Act, 1949 empowers the RBI to issue licenses to banking companies?
Section 22 of the Banking Regulation Act, 1949 empowers the RBI to issue licenses to banking companies for carrying on banking business in India.
What is the minimum statutory liquidity ratio (SLR) that banks must maintain as per RBI directions?
SLR requires banks to maintain liquid assets at minimum 18% of net demand and time liabilities
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