Questions and Answers
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?
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What does the Banking Regulation Act 1949 require banks to maintain as a reserve with the Reserve Bank of India?
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What is the previous name of the Banking Regulation Act 1949?
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What does the Banking Regulation Act 1949 prohibit banks from doing?
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What power does the Banking Regulation Act 1949 give to the Reserve Bank of India?
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What does the Banking Regulation Act 1949 require banks to maintain as a reserve with the Reserve Bank of India?
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What does the Banking Regulation Act 1949 define as 'Banking'?
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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
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Description
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.
