Banking Laws & Development Financial Institutions
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 65 rapid-fire Q&A cards.
Which Act is the primary legislation governing the establishment and functioning of commercial banks in India?
The Banking Regulation Act, 1949 is the primary legislation governing commercial banks in India, granting RBI supervisory and regulatory powers over banking companies.
Which section of the Banking Regulation Act, 1949 defines the term 'bank'?
Section 5(c) defines the term 'bank' under BR Act.
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 came into force on April 1, 1935.
Under which Act was the State Bank of India constituted?
State Bank of India Act, 1955 constituted SBI.
What is the minimum paid-up capital requirement for a new private sector bank as per RBI guidelines?
The minimum paid-up capital requirement for a new private sector bank is Rs. 500 crore as per RBI's licensing guidelines.
What is the minimum net owned fund requirement for a new urban co-operative bank?
Minimum net owned fund is Rs. 2 crore for urban co-operative banks.
What does Section 22 of the Banking Regulation Act, 1949 deal with?
Section 22 of the Banking Regulation Act, 1949 deals with the licensing of banking companies, requiring every banking company to obtain a licence from RBI before commencing banking business in India.
Which section of the Banking Regulation Act empowers RBI to inspect any banking company?
Section 35 empowers RBI to inspect banking companies.
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