INDIAN BANKING STRUCTURE ADD
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One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the apex institution of the Indian banking system?
The Reserve Bank of India (RBI) is the apex institution, established in 1935 under the Reserve Bank of India Act, 1934, and nationalized in 1949.
Which body governs the monetary policy of India?
Reserve Bank of India governs India's monetary policy.
Under which Act are commercial banks in India regulated?
Commercial banks in India are regulated under the Banking Regulation Act, 1949, which gives RBI the power to license, inspect, and control banks.
In which year was the Reserve Bank of India established?
Reserve Bank of India was established in 1935.
What are the two broad categories of the Indian banking structure?
The Indian banking structure is broadly divided into scheduled banks and non-scheduled banks, based on their inclusion in the Second Schedule of the RBI Act, 1934.
What is the minimum paid-up capital required to set up a new private sector bank in India?
Minimum paid-up capital required is Rs. 500 crore.
What criteria must a bank meet to be included in the Second Schedule of the RBI Act?
A bank must have paid-up capital and reserves of at least Rs. 5 lakh and must satisfy RBI that its affairs are not conducted in a manner detrimental to the interests of depositors.
What does SARFAESI Act stand for and what is its purpose?
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act; enables banks to recover NPAs.
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