Banking Regulation Act 1949 Quiz

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10 Questions

What was the Banking Regulation Act 1949 previously known as?

The Banking Companies Act

What does the Banking Regulation Act 1949 define as 'Banking'?

Accepting deposits from the public and lending or investing the same

What does the Banking Regulation Act 1949 prohibit banks from doing?

Trading in goods

What power does the Banking Regulation Act 1949 give to the Reserve Bank of India?

Control and supervision of commercial banks

What does the Banking Regulation Act 1949 require banks to maintain as a reserve with the Reserve Bank of India?

Certain minimum balance in cash or securities

What is the previous name of the Banking Regulation Act 1949?

Banking Companies Act

What does the Banking Regulation Act 1949 prohibit banks from doing?

Trading in goods

What power does the Banking Regulation Act 1949 give to the Reserve Bank of India?

Control and supervision of commercial banks

What does the Banking Regulation Act 1949 require banks to maintain as a reserve with the Reserve Bank of India?

Certain minimum balance as reserve in cash or securities

What does the Banking Regulation Act 1949 define as 'Banking'?

Accepting deposit of money from public, repayable on demand or otherwise, and withdrawable by cheque, order or otherwise

Study Notes

Banking Regulation Act 1949

  • Previously known as the Banking Companies Act 1949

Definition of Banking

  • Banking is defined as accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise

Prohibitions

  • Prohibits banks from engaging in any form of business other than banking
  • Prohibits banks from having a subsidiary company

Powers of Reserve Bank of India

  • Gives the Reserve Bank of India the power to regulate and supervise banking companies
  • Gives the Reserve Bank of India the power to issue directions to banking companies

Reserve Requirements

  • Requires banks to maintain a cash reserve with the Reserve Bank of India

Test your knowledge of the Banking Regulation Act 1949 with this quiz. Explore the history and key provisions of this landmark legislation that regulates banking in India. Challenge yourself with questions on its impact and significance in the Indian banking sector.

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