Banking Laws RBI ACT 1934 and BR ACT 1949
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.
In which year was the Reserve Bank of India established?
The Reserve Bank of India was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
What is the full form of 'BR Act' in the context of Indian banking regulation?
Banking Regulation Act enacted in 1949 governing banks.
What is the primary objective of the Reserve Bank of India as stated in the RBI Act, 1934?
The primary objective is to regulate the issue of bank notes, maintain reserves to secure monetary stability, and operate the currency and credit system of India to its advantage.
Which section of the Banking Regulation Act, 1949 deals with the licensing of banks?
Section 22 of the BR Act deals with bank licensing.
Under which section of the RBI Act is the RBI empowered to issue bank notes?
Section 22 of the RBI Act, 1934 grants the Reserve Bank of India the sole right to issue bank notes in India.
What is the minimum capital and reserves requirement for banks operating in states under the Banking Regulation Act?
Minimum capital and reserves must not be less than five lakh rupees.
What is the minimum paid-up capital required for a new private sector bank under the Banking Regulation Act, 1949?
A new private sector bank must have a minimum paid-up capital of Rs. 500 crore as per RBI guidelines issued under the Banking Regulation Act, 1949.
Under which section of the RBI Act, 1934 is the RBI empowered to regulate money market?
RBI regulates money market primarily under Section 45W of RBI Act.
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