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Questions and Answers
What are demand liabilities according to Section 5(f)?
What are demand liabilities according to Section 5(f)?
- Liabilities to be met on demand (correct)
- Liabilities with fixed repayment schedules
- Liabilities that are exempt from repayment
- Liabilities that can be deferred indefinitely
Under Section 6(1), what is included in the banking business as defined?
Under Section 6(1), what is included in the banking business as defined?
- Selling agricultural produce
- Operating a construction company
- Running a clothing store
- Dealing in foreign exchange (correct)
What does Section 5(n) define as Secured Loans and Advances?
What does Section 5(n) define as Secured Loans and Advances?
- Loans secured by assets of equal or greater value than the loan amount (correct)
- Loans secured by assets of lesser value than the loan amount
- Loans without any security
- Loans secured by government bonds
According to Section 6(2), what restriction is placed on banking companies?
According to Section 6(2), what restriction is placed on banking companies?
Who is allowed to use terms like Bank, Banker, Banking or Banking Company according to the text?
Who is allowed to use terms like Bank, Banker, Banking or Banking Company according to the text?
What is the maximum period a Chairman/MD of a banking company can hold office for?
What is the maximum period a Chairman/MD of a banking company can hold office for?
What is the minimum paid-up capital required for foreign banks operating in Bombay or Calcutta?
What is the minimum paid-up capital required for foreign banks operating in Bombay or Calcutta?
How much of its profits must a bank transfer to the reserve fund as per Section 17(1)?
How much of its profits must a bank transfer to the reserve fund as per Section 17(1)?
What restriction does Section 19(2) place on banks regarding holding shares in a company?
What restriction does Section 19(2) place on banks regarding holding shares in a company?
What is the consequence stated in Section 21A regarding transactions between a bank and its debtor?
What is the consequence stated in Section 21A regarding transactions between a bank and its debtor?
