666 MCQs on RBI Act, 1934 PDF

666 MCQs (with answers) on RBI ACT, 1934 – All Chapters The 666 MCQs on RBI ACT, 1934 Prepared by S Purushothaman December 12, 2020 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters Preface I thank all the Readers who have given some wonderful feedback after reading my first book on “The 1008 MCQs on the RBI’s Annual Report 2019-20” published in October 2020, which has motivated me to set my next target in preparing the MCQs on the RBI Act. Reading the RBI Act requires a lot of involvement and patience to understand each and every section of all the chapters. Each section in the Act has a lot of inputs and it took more than two months for me to prepare the MCQs covering all the chapters of the Act. I have tried to cover maximum points from each section of all the chapters of the Act while preparing for the MCQs. I have used a few words in short forms like CG for Central Government, SG for State Government and FI for Financial Institution in these MCQs. Utmost care has been taken to keep these MCQs error free. However, if any error is found, please excuse. The answers for the MCQs are provided at the end of each chapter. The RBI Act is like a Bible for all the Officers and Staffs of the RBI. The more the Act is read, the more clarity about RBI is assured. The MCQs on the RBI Act prepared by me would be beneficial for those aspirants of RBI who will be appearing for the forthcoming promotion exams / interviews for any Grade. My Best Wishes to all the readers. Thank you Purushothaman [email protected] Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters CONTENTS Sl. Number Chapter Topic of MCQs No. 1 Chapter I Preliminary 34 2 Chapter II Incorporation, Capital, Management & Business 186 3 Chapter III Central Banking Functions 94 Chapter IIIA Collection & Furnishing of Credit Information Prohibition of Acceptance of Deposits by 4 Chapter IIIC Unincorporated Bodies 55 Regulation of Transactions in Derivatives, Money Chapter IIID Market Instruments, Securities, etc Provisions relating to non-banking institutions 5 Chapter IIIB receiving deposits and financial institutions 99 Chapter IIIE Joint Mechanism 6 50 Chapter IIIF Monetary Policy 7 Chapter IV General Provisions 88 8 Chapter V Penalties 60 TOTAL MCQs 666 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 34 MCQs on Chapter I (Preliminary) of the RBI ACT, 1934 1. The Sections 2 to 19, 47, 50 to 52, 55 to 58 and 61 of the RBI Act, 1934 were brought into force on _______________ and other Sections of the Act on April 01, 1935. a) March 31, 1935 b) January 1, 1934 c) April 1, 1934 d) January 1, 1935 2. In terms of Section 2 (cii) of the RBI Act, 1934, the “inflation target” means the inflation target determined in accordance with the sub-section (l) of Section ________. a) Section 45ZA b) Section 45ZB c) Section 45ZC d) None of the above 3. In terms of Section 2 (i) of the RBI Act, 1934, the “Co-operative bank”, “co- operative credit society”, “director”, “primary agricultural credit society, “primary co-operative bank” and “primary credit society” shall have the meanings respectively assigned to them in Part V of the _______________________. a) RBI Act, 1934 b) Banking Regulation Act, 1949 c) Indian Cooperative Societies Act, 1906 d) None of the Above 4. In terms of Section 2 (cccci) of the RBI Act, 1934, the “Policy Rate” means the rate for repo-transactions under sub-section (12AB) of Section ________. a) Section 15 b) Section 16 c) Section 17 d) Section 18 5. Which one of the followings is referred as “National Bank” in terms of Section 2 (ccc) of the RBI Act, 1934? a) RBI b) NABARD c) SBI d) RRB 6. In terms of Section 1 of the RBI Act, 1934, the RBI Act is applicable to the whole of India except the State of Jammu & Kashmir. Whether this statement is TRUE or FALSE? a) True b) Partially False c) False d) Partially True 7. Which one of the followings is referred as “International Fund” in terms of Section 2 (cc) of the RBI Act, 1934? a) IMF b) WWF c) World Bank d) BIS Fund Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 8. Match the following related to Section (2) of the Chapter I: a) Scheduled bank (i) BR Act, 1949 b) Sponsor Bank (ii) RBI c) Co-operative bank (iii) Second Schedule d) Bank (iv) RRB Act, 1976 a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-ii b-iv c-i d-iii d) a-iii b-iv c-i d-ii 9. In terms of Section 2 (d) of the RBI Act, 1934, the “Rupee Coin” means the rupees which are legal tender in India under the provisions of the _________. a) RBI Act, 1934 b) Banking Regulation Act, 1949 c) Indian Coinage Act, 1906 d) None of the Above 10. In terms of Section _______ of the RBI Act, 1934, the “Bank for International Settlements (BIS)” means the body corporate established with the said name under the law of Switzerland in pursuance of an agreement dated January 20, 1930 signed at the Hague. a) Section 2 b) Section 1 c) Section 3 d) None of the above 11. In terms of Section 2 of the RBI Act, 1934, the “______________________” means the body corporate established with the said name under the law of Switzerland in pursuance of an agreement dated January 20, 1930 signed at the Hague. a) Asian Development Bank (ADB) b) Bank for International Settlements (BIS) c) World Bank d) International Monetary Fund (IMF) 12. In terms of Section 2 (cci) of the RBI Act, 1934, the “Monetary Policy Committee” means the Committee constituted under sub-section (l) of Section ________. a) Section 45ZA b) Section 45ZB c) Section 45ZC d) None of the above 13. In terms of Section 2 (cccc) of the RBI Act, 1934, the “National Housing Bank” means a National Housing Bank established under the _______________________. a) National Housing Bank Act, 1987 b) National Housing Bank Act, 1985 c) National Housing Bank Act, 1986 d) None of the above 14. In terms of Section 2 of the RBI Act, 1934, the “Bank for International Settlements (BIS)” means the body corporate established with the said name under the law of _________________ in pursuance of an agreement dated January 20, 1930 signed at the Hague. a) Sweden b) Shangai c) Singapore d) Switzerland Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 15. In terms of Section 2 (eb) of the RBI Act, 1934, the “Small Industries Bank” means a Small Industries Development Bank of India established under the _______________________. a) SIDBI Act, 1982 b) SIDBI Act, 1988 c) SIDBI Act, 1989 d) None of the above 16. In terms of Section 2 of the RBI Act, 1934, the “Bank for International Settlements (BIS)” means the body corporate established with the said name under the law of Switzerland in pursuance of an agreement dated January 20, 1930 signed at ____________. a) The Hague b) Germany c) Washington d) Moscow 17. Which one of the followings is referred as “International Bank” in terms of Section 2 (cc) of the RBI Act, 1934? a) International Monetary Fund b) Bank for International Settlements c) International Bank for Reconstruction and Development d) G7 Bank 18. In terms of Section 2 (h) of the RBI Act, 1934, the “agricultural operations”, “central co-operative bank”, “co-operative society”, “crops”, “marketing of crops”, “pisciculture”, “regional rural bank” and “State co-operative bank” shall have the meanings respectively assigned to them in the the _______________________. a) NABARD Act, 1983 b) NABARD Act, 1982 c) NABARD Act, 1984 d) NABARD Act, 1981 19. Match the following related to Section (2) of the Chapter I: a) International Bank (i) NABARD b) National Bank (ii) Intl. Finance Corporation c) Corporation (iii) Intl. Development Association d) Association (iv) Intl. Bank for Reconstruction & Development a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-ii b-iv c-i d-iii d) a-iii b-iv c-ii d-i 20. In terms of Section _______ of the RBI Act, 1934, the “inflation” means the year wise change in monthly Consumer Price Index expressed in terms of percentage. a) Section 1 b) Section 2 c) Section 3 d) None of the above 21. In terms of Section 2 (fi) of the RBI Act, 1934, the “State Finance Corporation” means any State Financial Corporation established under the _______________. a) State Finance Corporates Act, 1951 b) State Financial Corporates Act, 1951 c) State Finance Corporations Act, 1951 d) State Financial Corporations Act, 1951 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 22. In terms of Section 2 (ci) of the RBI Act, 1934, the “_________” means the year wise change in monthly Consumer Price Index expressed in terms of percentage. a) Inflation b) Stagflation c) Deflation d) None of the above 23. In terms of Section 2 (ea) of the RBI Act, 1934, the “Sponsor Bank” means a Sponsor Bank as defined in the _______________________. a) RBI Act, 1934 b) Banking Regulation Act, 1949 c) Regional Rural Banks Act, 1976 d) Indian Cooperative Societies Act, 1906 24. In terms of Section 2 (ci) of the RBI Act, 1934, the “inflation” means the ________ wise change in monthly Consumer Price Index expressed in terms of percentage. a) Week b) Month c) Fortnight d) Year 25. In terms of Section 2 (eb) of the RBI Act, 1934, the “State Bank” means a State Bank of India constituted under the _______________________. a) SBI Act, 1955 b) BR Act, 1949 c) RBI Act, 1934 d) None of the above 26. Which of the following places the RBI Act, 1934 is applicable in terms of Section 1 of the RBI Act, 1934? a) All India except J&K b) All India except Sikkim c) All India except North-East States d) All India 27. In terms of Section 2 (ci) of the RBI Act, 1934, the “inflation” means the year wise change in monthly ___________ expressed in terms of percentage. a) Wholesale Price Index b) Food Price Index c) Consumer Price Index d) None of the above 28. Which one of the followings is referred by “International Finance Corporation” in terms of Section 2 (cb) of the RBI Act, 1934? a) Corporation b) International Corporation c) International Finance d) Finance 29. In terms of Section 2 (e) of the RBI Act, 1934, the “scheduled bank” means a bank included in the ____________ Schedule of the Act. a) First Schedule b) Second Schedule c) Third Schedule d) None of the Above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 30. In terms of Section 2 (ccc) of the RBI Act, 1934, the “National Bank” means a National Bank for Agriculture and Rural Development established under the _______________________. a) NABARD Act, 1983 b) NABARD Act, 1982 c) NABARD Act, 1981 d) None of the above 31. In terms of Section 2 (ci) of the RBI Act, 1934, the “inflation” means the year wise change in monthly Consumer Price Index expressed in terms of ________. a) Percentage b) Amount c) USD d) Decimal 32. In terms of Section 2 (bvi) of the RBI Act, 1934, the “Deposit Insurance Corporation” means the Deposit Insurance Corporation established under the _______________________. a) Deposit Insurance Corporation Act, 1962 b) Deposit Insurance Corporation Act, 1960 c) Deposit Insurance Corporation Act, 1961 d) None of the above 33. Which one of the followings is referred by “International Development Association” in terms of Section 2 (ca) of the RBI Act, 1934? a) Corporation b) Association c) International Association d) Development 34. In terms of Section 2 (bviiia) of the RBI Act, 1934, the “Exim Bank” means the Export-Import Bank of India established under the _______________________. a) Export-Import Bank of India Act, 1980 b) Export-Import Bank of India Act, 1982 c) Export-Import Bank of India Act, 1983 d) Export-Import Bank of India Act, 1981 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters ANSWERS for Chapter I of the RBI Act, 1934 1. (d) January 1, 1935 2. (a) Section 45ZA 3. (b) Banking Regulation Act, 1949 4. (c) Section 17 5. (b) NABARD 6. (c) False 7. (a) IMF 8. (d) a-iii b-iv c-i d-ii 9. (c) Indian Coinage Act, 1906 10. (a) Section 2 11. (b) Bank for International Settlements 12. (b) Section 45ZB 13. (a) National Housing Bank Act, 1987 14. (d) Switzerland 15. (c) SIDBI Act, 1989 16. (a) The Hague 17. (c) International Bank for Reconstruction and Development 18. (d) NABARD Act, 1981 19. (a) a-iv b-i c-ii d-iii 20. (b) Section 2 21. (d) State Financial Corporations Act, 1951 22. (a) Inflation 23. (c) Regional Rural Banks Act, 1976 24. (d) Year 25. (a) SBI Act, 1955 26. (d) All India 27. (c) Consumer Price Index 28. (a) Corporation 29. (b) Second Schedule 30. (c) NABARD Act, 1981 31. (a) Percentage 32. (c) Deposit Insurance Corporation Act, 1961 33. (b) Association 34. (d) Export-Import Bank of India Act, 1981 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 186 MCQs on Chapter II (Incorporation, Capital, Management and Business) of the RBI ACT, 1934 1. The Section ________ of the RBI Act, 1934, deals with the promoting, establishing, supporting or aiding in the promotion, establishment and support of any financial institution, whether as its subsidiary or otherwise. a) Section 17(8) b) Section 17(8A) c) Section 17(8AA) d) Section 17(8B) 2. In terms of Section 8(4) of the RBI Act, 1934, a Director nominated under Section 8(1)(d) shall hold office during the _____________ of the Central Govt. a) pleasure b) 4 years c) 3 years d) 5 years 3. In terms of Section ______ of the RBI Act, 1934, a Local Board shall be constituted for each of the four areas specified in the First Schedule and shall consist of five members to be appointed by the Central Government to represent, as far as possible, territorial and economic interests and the interests of co- operative and indigenous banks. a) Section 9(2) b) Section 9(1) c) Section 9(3) d) Section 9(4) 4. In terms of Section 17(14) of the RBI Act, 1934, the Bank shall be authorised to borrow money for a period not exceeding __________ for the purposes of the business of the Bank and the giving of security for money so borrowed, provided that no money shall be borrowed under this clause from any person in India other than a scheduled bank or from any person outside India other than a bank which is the principal currency authority of any country under the law for the time being in force in that country, provided further that the total amount of such borrowing from persons in India shall not at any time exceed the amount of the capital of the Bank. a) One month b) 3 months c) 6 months d) 12 months 5. In terms of Section _______ of the RBI Act, 1934, the Bank shall be authorised to accept money on deposit without interest from and the collection of money for the Central Government, the State Governments, local authorities, banks and any other persons. a) Section 17(3) b) Section 17(2) c) Section 17(4) d) Section 17(1) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 6. In terms of Section 11(6) of the RBI Act, 1934, a Director may resign his office to the _______________ and on the acceptance of the resignation, the office shall become vacant. a) Central Government b) Governor c) Deputy Governor d) Central Board 7. In terms of Section ________ of the RBI Act, 1934, the Bank shall be authorised to make to any scheduled bank or State co-operative bank of loans and advances repayable on demand or on the expiry of fixed periods not exceeding 180 days against promissory notes of such bank, provided that the borrowing bank furnishes a declaration in writing to the effect that it has made loans and advances for bona fide commercial or trade transactions or for financing agricultural operations or the marketing of crops or for other agricultural purposes as set out in the declaration and the said declaration includes such other particulars as may be required by the Bank. a) Section 17(3A) b) Section 17(3B) c) Section 17(3C) d) Section 17(3D) 8. In terms of Section __________ of the RBI Act, 1934, the Meetings of the Central Board shall be convened by the Governor at least six times in each year and at least once in each quarter. a) Section 13(3) b) Section 13(2) c) Section 13(1) d) Section 13(4) 9. In terms of Section 17(8B) of the RBI Act, 1934, the Bank shall be authorised to keep deposit with the _____________ for such specific purposes as may be approved by the Central Government in this behalf. a) State Bank b) National Bank c) NHB d) Any nationalised bank 10. In terms of Section _______ of the RBI Act, 1934, the Bank shall be authorised to accept money as deposits, repayable with interest, from banks or any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, from time to time, for the purpose of liquidity management. a) Section 17(3A) b) Section 17(1A) c) Section 17(4A) d) Section 17(2A) 11. Which of the following purposes the RBI was constituted in terms of Section 3 of the RBI Act? a) Taking over the management of the currency from the central government b) Carrying on the business of banking in accordance with the provisions of the RBI Act. c) Only a d) Both a and b Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 12. In terms of Section __________ of the RBI Act, 1934, the Governor and in his absence the Deputy Governor nominated by him shall have powers of general superintendence and direction of the affairs and business of the Bank and may exercise all powers and do all the acts and things which may be exercised or done by the Bank. a) Section 6 (3) b) Section 8 (3) c) Section 7 (3) d) None of the above 13. In terms of Section 17(4) of the RBI Act, 1934, the Bank shall be authorised to make to local authorities, scheduled banks, State co-operative banks and State Financial Corporations of loans and advances, repayable on demand or on the expiry of fixed periods not exceeding _______ days, against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any Act of Parliament of the UK or by any law for the time being in force in India, gold or silver or documents of title to the same, such bills of exchange and promissory notes as are eligible for purchase or rediscount by the Bank, promissory notes of any scheduled bank or State co-operative bank, supported by documents of title to goods such documents having been transferred, assigned, or pledged to any such bank as security for a loan or advance made for bona fide commercial or trade transactions or for the purpose of financial agricultural operations or the marketing of crops, provided that loans and advances made against the security of bills of exchange and promissory notes arising out of any transaction relating to export of goods from India shall be repayable on demand or on the expiry of fixed periods not exceeding 180 days. a) 180 days b) 90 days c) 60 days d) 45 days 14. In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to act as agent for the CG or any SG or any local authority or the IFCI or any other body corporate which is established or constituted by or under any other law or the Govt of any such country outside India or any such person or authority as may be approved in this behalf by the CG in the transaction of any of the following kinds of business, namely (a) purchase and sale of gold or silver or forex, (b) the purchase, sale, transfer and custody of BoE, securities or shares in any company (c) the collection of the proceeds, whether principal, interest or dividends of any securities or shares (d) the remittance of such proceeds, at the risk of the principal, by BoE payable either in India or elsewhere, (e) the management of public debt and (f) the issue and management of bonds and debentures. a) Section 17(10) b) Section 17(11A) c) Section 17(12) d) Section 17(11) 15. Which of the following Directors are eligible to take part in the Central Board Meetings however shall not be eligible to vote in terms of Section 8(3) of the RBI Act, 1934? a) A DG and the Director nominated under Section 8(1)(d) b) A DG and the Director nominated under Section 8(1)(c) c) A DG and the Director nominated under Section 8(1)(b) d) None of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 16. In terms of Section ___________ of the RBI Act, 1934, the Directors of the Central Board includes four Directors to be nominated by the Central Government, one from each of the four Local Boards as constituted by Section 9. a) Section 8(1)(b) b) Section 8(1)(a) c) Section 8(1)(c) d) Section 8(1)(d) 17. In terms of Section 17(4DD) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to ___________ in such manner and on such terms as may be determined by the Central Board. a) DICGC b) NHB c) NABARD d) CAFRAL 18. The Section ___________ of the RBI Act, 1934, deals with the purchase and sale of gold or silver coins and gold and silver bullion and forex and the opening of a gold account with the principal currency authority of any foreign country or the Bank for International Settlements or any international or regional bank or FI formed by such principal currency authority(s) by the Government of any foreign country. a) Section 17(10) b) Section 17(11A) c) Section 17(12) d) Section 17(11) 19. In terms of Section 8(2) of the RBI Act, 1934, the Central Government may, in consultation with the Bank, appoint a ___________________ as the Chairman of the National Bank, on such terms and conditions as that Government may specify. a) Governor b) Executive Director c) Director of the Central Board d) Deputy Governor 20. The Section ____________ of the RBI Act, 1934, deals with lending or borrowing of securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities. a) Section 17(12AA) b) Section 17(12AB) c) Section 17(12A) d) Section 17(12B) 21. In terms of Section 17(1A) of the RBI Act, 1934, the Bank shall be authorised to accept money as deposits, repayable with interest, from banks or any other person under the __________________ Scheme, as approved by the Central Board, from time to time, for the purpose of liquidity management. a) Liquidity Adjustment Facility b) Marginal Standing Facility c) Standing Deposit Facility d) None of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 22. In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to make to any State Financial Corporation of loans and advances repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that Corporation and guaranteed by the State Government concerned and maturing within a period not exceeding 18 months from the date of such loan or advance provided that the previous approval of the State Government shall be obtained for the borrowing by the State Finance Corporation and the amount of loans and advances granted to that Corporation under this clause shall not at any time, exceed in the aggregate (twice the paid up share capital) thereof. a) Section 17(4) b) Section 17(4A) c) Section 17(4B) d) Section 17(4C) 23. Match the following related to Section 17 of the Chapter II: a) Section 17(4H) (i) L& As to NABARD b) Section 17(4E) (ii) L&As to DICGC c) Section 17(4D) (iii) L&As to SIDBI d) Section 17(4DD) (iv) L&As to NHB a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-iii b-i c-ii d-iv d) a-iii b-iv c-i d-ii 24. In terms of Section ___________of the RBI Act, 1934, the Bank shall be a body corporate by the name of the Reserve Bank of India, having perpetual succession and a common seal, and shall by the said name sue and be sued. a) Section 1 b) Section 2 c) Section 3 d) Section 4 25. In terms of Section 7(3) of the RBI Act, 1934, the Governor and in his absence the ___________ nominated by him shall have powers of general superintendence and direction of the affairs and business of the Bank and may exercise all powers and do all the acts and things which may be exercised or done by the Bank. a) Director of the Central Board b) Deputy Governor c) Executive Director d) None of the above 26. Which one of the following sections of the RBI Act deals with business which the Bank may transact? a) Section 13 b) Section 15 c) Section 17 d) Section 18 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 27. In terms of Section 13(3) of the RBI Act, 1934, the Governor or if for any reason he is unable to attend, the _____________ authorised by the Governor under the proviso to Section 8(3) to vote for him, shall preside at meetings of the Central Board and in the event of an equality of votes, shall have a second or casting vote. a) Executive Director b) Deputy Governor c) Any Director of the Central Board d) None of the above 28. In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to be the custody of monies, securities and other articles of value and the collection of the proceeds, whether principal, interest or dividends, of any such securities. a) Section 17(9) b) Section 17(8) c) Section 17(10) d) Section 17(7) 29. In terms of Section 17(4A) of the RBI Act, 1934, the Bank shall be authorised to make to any __________________ of loans and advances repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that Corporation and guaranteed by the State Government concerned and maturing within a period not exceeding 18 months from the date of such loan or advance. a) Life Insurance Corporation b) Industrial Finance Corporation of India c) National Rural Credit (Long Term Operations) Fund d) State Financial Corporation 30. In terms of Section ______________ of the RBI Act, 1934, the Bank shall be authorised to participate in any arrangement for the clearing and settlement of any amounts due from or to any person or authority on account of the external trade of India with any other country or group of countries or of any remittances to or from that country or group of countries, including the advancing, or receiving, of any amount in any currency in connection therewith, and, for that purpose, becoming, with the approval of the CG, a member of any international or regional clearing union of central banks, monetary or other authorities, or being associated with any such clearing arrangements, or becoming a member of any body or association formed by central banks, monetary or other similar authorities, or being associated with the same in any manner. a) Section 17(12) b) Section 17(13A) c) Section 17(13) d) Section 17(12A) 31. In terms of Section 12(4) of the RBI Act, 1934, where any casual vacancy occurs in the office of a Director other than the vacancies provided for in 12(1), the vacancy shall be filled by the ____________. a) Central Government b) Central Board c) Governor d) Deputy Governor Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 32. In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to National Housing Bank (NHB) in such manner and on such terms as may be determined by the Central Board. a) Section 17(4D) b) Section 17(4DDD) c) Section 17(4DD) d) Section 17(4DDDD) 33. In terms of Section 17(1A) of the RBI Act, 1934, the Bank shall be authorised to accept money as deposits, repayable with interest, from banks or any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, from time to time, for the purpose of _________________________. a) Inflation management b) Liquidity management c) Advances management d) Interest rate management 34. In terms of Section ___________ of the RBI Act, 1934, the Directors of the Central Board includes ten Directors to be nominated by the Central Government. a) Section 8(1)(b) b) Section 8(1)(a) c) Section 8(1)(c) d) Section 8(1)(d) 35. In terms of Section 8(2) of the RBI Act, 1934, the Central Government may, in consultation with the Bank, appoint a Deputy Governor as the _____________ of the National Bank, on such terms and conditions as that Government may specify. a) Deputy Chairman b) Vice Chairman c) Managing Director d) Chairman 36. In terms of Section _____________ of the RBI Act, 1934, when, in the opinion of the Bank, a special occasion has arisen making it necessary or expedient that action should be taken for the purpose of regulating credit in the interests of Indian trade, commerce, industry and agriculture, the Bank may, notwithstanding any limitation contained in Section 17, (a) purchase, sell or discount any bill of exchange or promissory note though such bill or promissory note is not eligible for purchase or discount by the Bank under that Section or (b) make loans or advances to a State co-operative bank or on the recommendation of a State co-operative bank, to a co-operative society registered within the area in which the State co-operative bank operates or any other person, repayable on demand or on the expiry of the fixed periods, not exceeding 90 days, on such T&Cs as the Bank may consider to be sufficient. a) Section 17(15) b) Section 17(16) c) Section 17(18) d) Section 17(17) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 37. In terms of Section 17(4A) of the RBI Act, 1934, the Bank shall be authorised to make to any State Financial Corporation of loans and advances repayable on the expiry of fixed periods not exceeding _____________ from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that Corporation and guaranteed by the State Government concerned and maturing within a period not exceeding 18 months from the date of such loan or advance provided that the previous approval of the State Government shall be obtained for the borrowing by the State Finance Corporation and the amount of loans and advances granted to that Corporation under this clause shall not at any time, exceed in the aggregate (twice the paid up share capital) thereof. a) 18 months b) 24 months c) 12 months d) 36 months 38. In terms of Section ________ of the RBI Act, 1934, a Director may resign his office to the Central Government and on the acceptance of the resignation, the office shall become vacant. a) Section 11(5) b) Section 11(6) c) Section 11(4) d) Section 11(7) 39. In terms of Section 17(4J) of the RBI Act, 1934, the Bank shall be authorised to make loans and advances to _________________, repayable on demand or on the expiry of fixed periods not exceeding 90 days, from the date of such loan or advance the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or against the security of bills of exchange or promissory notes, arising out of bona fide commercial or trade transactions bearing two or more good signatures and maturing within five years from the date of such loan or advance. a) EXIM Bank b) NABARD c) NHB d) SIDBI 40. In terms of Section 9(1) of the RBI Act, 1934, a Local Board shall be constituted for each of the four areas specified in the First Schedule and shall consist of ________ members to be appointed by the Central Government to represent, as far as possible, territorial and economic interests and the interests of co- operative and indigenous banks. a) 5 b) 4 c) 6 d) 10 41. In terms of Section ______ of the RBI Act, 1934, a retiring Director of the Central Board shall be eligible for re-nomination. a) Section 8(5) b) Section 8(7) c) Section 8(6) d) Section 8(8) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 42. In terms of Section 17(2)(a) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in ___________ and arising out of bona fide commercial or trade transactions bearing two or more good signatures, one of which shall be that of a scheduled bank or a State co-operative bank or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf. a) Outside India b) India except J&K c) India d) None of the above 43. In terms of Section ______________ of the RBI Act, 1934, the Bank shall be authorised to make loans and advances in foreign currencies to scheduled banks, the EXIM Bank, the Reconstruction Bank or the Small Industries Bank, the Industrial Finance Corporation, any State Financial Corporation and any other FI as may, on the recommendation of the Bank, be approved by the CG and on such T&Cs as may be specified by the Central Board in this behalf, against promissory notes of such bank or FI, as the case may be, provided that the borrowing bank or FI, as the case may be, furnishes a declaration in writing to the effect that (a) it has made loans and advances in foreign currencies for financing international trade or for the import of capital goods or for such other purposes as may be approved by the CG and (b) that the amount of loans or advances so made and outstanding at any time will not be less than the outstanding amount of the loans or advances obtained by it from the Bank. a) Section 17(12B) b) Section 17(12) c) Section 17(12A) d) Section 17(13) 44. In terms of Section 17(4A) of the RBI Act, 1934, the Bank shall be authorised to make to any State Financial Corporation of loans and advances repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that Corporation and guaranteed by the State Government concerned and maturing within a period not exceeding 18 months from the date of such loan or advance provided that the previous approval of the State Government shall be obtained for the borrowing by the State Finance Corporation and the amount of loans and advances granted to that Corporation under this clause shall not at any time, exceed in the aggregate (________ the paid up share capital) thereof. a) 5 Times b) Twice c) Thrice d) 4 Times 45. In terms of Section 17(4DD) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to National Housing Bank (NHB) in such manner and on such terms as may be determined by the ___________________. a) Central Government b) Governor c) Central Board d) DG 46. In terms of Section 4 of the Reserve Bank of India (RBI) Act, 1934, the capital of the Bank shall be Rs. _________________. a) Rs.5 crores b) Rs.3 crores c) Rs.2 crores d) None of the Above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 47. In terms of Section ______ of the RBI Act, 1934, if the Governor or a DG by infirmity or otherwise is rendered incapable of executing his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment, the Central Government, may after consideration of the recommendations made by the Central Board in this behalf, appoint person to officiate for him and such person may, notwithstanding anything contained in Section 10(1)(d), be an officer of the Bank. a) Section 10 b) Section 11 c) Section 13 d) Section 12 48. In terms of Section 8(4) of the RBI Act, 1934, a Director nominated under Section 8(1)(c) shall hold office for a period of _______ years and shall be eligible for re-appointment. a) 3 years b) 5 years c) 4 years d) 6 years 49. In terms of Section 17(4K) of the RBI Act, 1934, the Bank shall be authorised to make loans and advances to _________________, repayable on demand or on the expiry of fixed periods not exceeding 90 days, from the date of such loan or advance the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or against the security of bills of exchange or promissory notes, arising out of bona fide commercial or trade transactions bearing two or more good signatures and maturing within five years from the date of such loan or advance. a) Reconstruction Bank b) National Bank c) Small Industries Bank d) EXIM Bank 50. In terms of Section __________ of the RBI Act, 1934, the total number of Directors of the Central Board of the RBI is 21. a) Section 6 (1) b) Section 8 (1) c) Section 7 (1) d) None of the above 51. Match the following related to Section 17 of the Chapter II: a) Section 17(1) (i) Purchase & sale of forex to scheduled banks b) Section 17(3) (ii) Making & issue of bank notes c) Section 17(5) (iii) Accepting money from CG, SGs, Las, banks d) Section 17(15) (iv) Advances to CG & SGs for 3 months a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-iii b-i c-iv d-ii d) a-iii b-iv c-i d-ii 52. In terms of Section ____________ of the RBI Act, 1934, the Bank shall be authorised to make of annual contributions to the National Rural Credit (Long Term Operations) Fund and the National Rural Credit (Stabilisation) Fund established under Section 42 and 43 respectively of the NABARD Act, 1981. a) Section 17(4AA) b) Section 17(4A) c) Section 17(4) d) Section 17(4AAA) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 53. In terms of Section 8(3) of the RBI Act, 1934, a DG and the Director nominated under Section 8(1)(d) may attend any meeting of the Central Board and take part in its deliberations but shall not be entitled to vote. However, when the Governor is, for any reason, unable to attend any such meeting, a __________ authorised by him in this behalf in writing may vote for him at that meeting. a) Executive Director b) Any Director of the Central Board c) Deputy Governor d) A Director nominated under Section 8(1)(d) 54. In terms of Section 17(2)(a)(i)(ii) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and arising out of bona fide commercial or trade transactions bearing two or more good signatures, one of which shall be that of a scheduled bank or a State co-operative bank or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf and maturing in the case of bills of exchange and promissory notes arising out of any such transaction relating to the export of goods from India, within _________ days and in any other case, within 90 days, from the date of such purchase or rediscount exclusive of days of grace. a) 60 days b) 90 days c) 45 days d) 180 days 55. In terms of Section ______ of the RBI Act, 1934, where any casual vacancy in the office of any member of a Local Board occurs, the Central Board may nominate thereto any person recommended by the other members of the Local Board. a) Section 12(3) b) Section 11(3) c) Section 13(3) d) Section 10(3) 56. In terms of Section 10(3) of the RBI Act, 1934, the Governor is exempted from Section 10(1)(a), (1)(d) and (1)(e) and eligible to be a Director or a member of the ______________. a) Central Board b) Any Committee constituted by the RBI c) Any Committee constituted by the Central Government d) Local Board 57. In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to National Bank repayable on demand or on the expiry of fixed period not exceeding 18 months from the date of making of the loan or advance, either against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or on such other terms and conditions as the Bank may specify. a) Section 17(4D) b) Section 17(4C) c) Section 17(4B) d) Section 17(4E) 58. In terms of Section 17(4AA) of the RBI Act, 1934, the Bank shall be authorised to make of annual contributions to the National Rural Credit (Long Term Operations) Fund and the National Rural Credit (Stabilisation) Fund established under Section 42 and 43 respectively of the ___________________. a) RBI Act, 1934 b) NABARD Act, 1981 c) BR Act, 1949 d) None of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 59. In terms of Section 13(1) of the RBI Act, 1934, the Meetings of the Central Board shall be convened by the Governor at least ________ times in each year and at least once in each quarter. a) Four b) Five c) Six d) Eight 60. In terms of Section ___________ of the RBI Act, 1934, the Directors of the Central Board includes two Government officials to be nominated by the Central Government. a) Section 8(1)(b) b) Section 8(1)(a) c) Section 8(1)(c) d) Section 8(1)(d) 61. In terms of Section 11(6) of the RBI Act, 1934, a member of a Local Board may resign his office to the _______________ and on the acceptance of the resignation, the office shall become vacant. a) Central Government b) Governor c) Deputy Governor d) Central Board 62. In terms of Section 17(2)(a)(i)(ii) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and arising out of bona fide commercial or trade transactions bearing two or more good signatures, one of which shall be that of a scheduled bank or a State co-operative bank or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf and maturing in the case of bills of exchange and promissory notes arising out of any such transaction relating to the export of goods from India, within 180 days and in any other case, within _______ days, from the date of such purchase or rediscount exclusive of days of grace. a) 60 days b) 90 days c) 45 days d) 180 days 63. In terms of Section 17(4AA) of the RBI Act, 1934, the Bank shall be authorised to make of annual contributions to the ______________________ established under Section 42 and 43 respectively of the NABARD Act, 1981. a) National Rural Credit (LTO) Fund & National Rural Credit (Stabilisation) Fund b) National Industrial Credit (LTO) Fund c) National Housing Credit Fund d) None of the above 64. In terms of Section _____________ of the RBI Act, 1934, the validity of any loan or advance granted by the Bank in pursuance of the provisions of the RBI Act shall not be called in question merely on the ground of non-compliance with the requirements of such other law as aforesaid or of any resolution, contract, memorandum, articles of association or other instrument, provided that nothing in this clause shall render valid any loan or advance obtained by any company or co-operative society where such company or co-operative society is not empowered by its memorandum to obtain loans or advances. a) Section 17(15A) b) Section 17(18A) c) Section 17(16A) d) Section 17(17A) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 65. In terms of Section 8(2) of the RBI Act, 1934, the Central Government may, in consultation with the Bank, appoint a Deputy Governor as the Chairman of the _________________, on such terms and conditions as that Government may specify. a) EXIM Bank b) SIDBI c) NABARD d) SBI 66. In terms of Section ________ of the RBI Act, 1934, the capital of the Bank shall be Rs.5 crores. a) Section 1 b) Section 2 c) Section 3 d) Section 4 67. In terms of Section 17(5) of the RBI Act, 1934, the Bank shall be authorised to make advances to the Central Government and State Governments, repayable in each case not later than __________________ from the date of the making of the advance. a) 6 months b) 3 months c) 9 months d) 12 months 68. In terms of Section __________ of the RBI Act, 1934, the Bank shall be authorised to making and issuing of bank notes subject to the provisions of this Act. a) Section 17(14) b) Section 17(16) c) Section 17(15) d) Section 17(15A) 69. In terms of Section 8(1)(a) of the RBI Act, 1934, the Directors of the Central Board includes a Governor and ________ Deputy Governors appointed by the Central Government. a) Four b) Two c) Three d) None of the above 70. In terms of Section 17(4E) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to __________________ repayable on demand or on the expiry of fixed period not exceeding 18 months from the date of making of the loan or advance, either against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or on such other terms and conditions as the Bank may specify. a) NHB b) DICGC c) NABARD d) CAFRAL 71. Which of the following reasons a person may not be eligible to be a Director or a Member of a Local Board, in terms of Section 10 of the RBI Act, 1934? a) Salaried Government official or a Director / officer / employee of any bank including cooperative bank b) At any time adjudicated as an insolvent or has suspended payment or has compounded with his creditors c) Is found lunatic or becomes of unsound mind d) All of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 72. In terms of Section 8(1)(d) of the RBI Act, 1934, the Directors of the Central Board includes two _______________ to be nominated by the Central Government. a) Deputy Governors b) Members from Local Boards c) Government Officials d) Executive Directors 73. In terms of Section __________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to the Industrial Finance Corporation of India, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the Central Government or of any State Government or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of Central Government of any maturity or against bonds and debentures issued by the said Corporation and guaranteed by the Central Government and maturing within a period not exceeding 18 months from the date of such loan or advance. a) Section 17(4A) b) Section 17(4B) c) Section 17(4C) d) Section 17(4D) 74. In terms of Section 17(2)(b) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and bearing two or more good signatures, one of which shall be that of a scheduled bank or a State co-operative bank or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf and drawn or issued for the purpose of financing agricultural operations or the marketing of crops and maturing within _________ months from the date of such purchase or rediscount, exclusive of days of grace. a) 6 months b) 9 months c) 12 months d) 15 months 75. In terms of Section _________ of the RBI Act, 1934, a Director or member of a Local Board removed or ceasing to hold office shall not be eligible for re- appointment either as Director or as member of a Local Board until the expiry of the term for which his appointment was made. a) Section 11(4) b) Section 12(4) c) Section 13(4) d) Section 10(4) 76. Whether the Governor or a Deputy Governor of the RBI can undertake any part-time honorary work during their term in the Bank? a) Yes. They can undertake with the permission from the Central Board b) No. They cannot undertake any part-time honorary work c) Yes. They can perform under Section 8(2) with the prior permission from State Govt. d) No. They cannot perform as per the RBI Act, 1934 77. In terms of Section _____________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Deposit Insurance Corporation in such manner and on such terms as may be determined by the Central Board. a) Section 17(4B) b) Section 17(4D) c) Section 17(4C) d) Section 17(4A) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 78. In terms of Section 17(4B) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to the ____________________, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the Central Government or of any State Government or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of Central Government of any maturity or against bonds and debentures issued by the said Corporation and guaranteed by the Central Government and maturing within a period not exceeding 18 months from the date of such loan or advance. a) State Financial Corporation b) Unit Trust of India c) Industrial Finance Corporation of India d) Life Insurance Corporation of India 79. In terms of Section __________ of the RBI Act, 1934, the Bank shall be authorised to borrow money for a period not exceeding one month for the purposes of the business of the Bank and the giving of security for money so borrowed, provided that no money shall be borrowed under this clause from any person in India other than a scheduled bank or from any person outside India other than a bank which is the principal currency authority of any country under the law for the time being in force in that country, provided further that the total amount of such borrowing from persons in India shall not at any time exceed the amount of the capital of the Bank. a) Section 17(14) b) Section 17(15) c) Section 17(13) d) Section 17(12) 80. In terms of Section 8(4) of the RBI Act, 1934, a Director nominated under Section 8(1)(c) shall not be appointed for more than two terms that is, for a maximum period of ________ years either continuously or intermittently. a) 4 years b) 10 years c) 6 years d) 8 years 81. In terms of Section 17(4E) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to National Bank repayable on demand or on the expiry of fixed period not exceeding __________ from the date of making of the loan or advance, either against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or on such other terms and conditions as the Bank may specify. a) 24 months b) 9 months c) 18 months d) 12 months 82. In terms of Section _________ of the RBI Act, 1934, the Central Government shall remove from office any Director and the Central Board shall remove from office any member of a Local Board, if such Director or member becomes subject to any of the disqualifications specified in Section 10(1) or 10(2). a) Section 11(3) b) Section 10(3) c) Section 12(3) d) Section 13(3) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 83. In terms of Section 17(4GG) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to and purchasing of bonds and debentures of the _________________ out of the National Housing Credit (Long Term Operations) Fund established under Section 46D. a) NABARD b) NHB c) SIDBI d) EXIM Bank 84. The Section __________ of the RBI Act, 1934 deals with the issue of demand drafts, telegraphic transfers and other kinds of remittances made payable at its own offices or agencies, the purchase of telegraphic transfers and the making, issue and circulation of bank post bills. a) Section 17(6) b) Section 17(5) c) Section 17(4) d) Section 17(6A) 85. Which one of the followings is NOT the office of the RBI in terms of Section 6 of the RBI Act, 1934? a) Chennai b) Bengaluru c) Mumbai d) Kolkata 86. Match the following related to Chapter II: a) Section 17 (i) Meetings of the Central Board b) Section 13 (ii) Offices, branches and agencies c) Section 6 (iii) Business which the Bank may not transact d) Section 19 (iv) Business which the Bank may transact a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-iii b-i c-iv d-ii d) a-iii b-iv c-i d-ii 87. In terms of Section 17(2)(bb) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and bearing two or more good signatures, one of which shall be that of a State co-operative bank or a State Financial Corporation or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf and drawn or issued for the purpose of financing the production or marketing activities of cottage and small scale industries approved by the Bank and maturing within _________ months from the date of such purchase or rediscount, exclusive of days of grace, provided that the payment of the principal and interest of such bills of exchange or promissory notes is fully guaranteed by the State Government. a) 6 months b) 9 months c) 15 months d) 12 months 88. In terms of Section 8(1)(b) of the RBI Act, 1934, the Directors of the Central Board includes four Directors to be nominated by the Central Government, one from each of the four __________ as constituted by Section 9. a) Offices b) Metros c) Local Boards d) Centres Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 89. In terms of Section 17(4B) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to the Industrial Finance Corporation of India, repayable on demand or on the expiry of fixed periods not exceeding ___________ from the date of such loan or advance, against securities of the Central Government or of any State Government or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of Central Government of any maturity or against bonds and debentures issued by the said Corporation and guaranteed by the Central Government and maturing within a period not exceeding 18 months from the date of such loan or advance. a) 180 days b) 90 days c) 60 days d) 120 days 90. In terms of Section 13(2) of the RBI Act, 1934, any four Directors may require the __________ to convene a meeting of the Central Board at any time. a) Governor b) Deputy Governor c) Central Government d) None of the above 91. In terms of Section ___________ of the RBI Act, 1934, the Governor and DGs should devote their whole time to the affairs of the Bank. a) Section 8(1) b) Section 8(4) c) Section 8(3) d) Section 8(2) 92. In terms of Section 6 of the RBI Act, 1934, the RBI can establish branches or agencies in any places other than its office places in 4 Metros in India. Whether this statement is TRUE or FALSE? a) True b) Partially False c) False d) Partially True 93. In terms of Section 10(3) of the RBI Act, 1934, the __________ nominated by the Central Government under Section 8(1)(d) are exempted from Section 10(1)(a), (1)(d) and (1)(e) and eligible to be a Director or a member of the Local Board. a) Director b) Deputy Governor c) Government official d) Governor 94. Which one of the following Sections deals with the business which the Bank may not transact? a) Section 19 b) Section 17 c) Section 18 d) Section 42 Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 95. In terms of Section 17(2)(bb) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and bearing two or more good signatures, one of which shall be that of a State co-operative bank or a State Financial Corporation or any FI, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf and drawn or issued for the purpose of financing the production or marketing activities of cottage and small scale industries approved by the Bank and maturing within 12 months from the date of such purchase or rediscount, exclusive of days of grace, provided that the payment of the principal and interest of such bills of exchange or promissory notes is fully guaranteed by the __________________. a) RBI b) Central Government c) SIDBI d) State Government 96. The Section 17(4F) of the RBI Act, 1934, deals with the contribution to the initial capital of the ____________. a) Unit Trust b) SIDBI c) NHB d) NABARD 97. In terms of Section 8(1)(b) of the RBI Act, 1934, the Directors of the Central Board includes four Directors to be nominated by the Central Government, one from each of the four Local Boards as constituted by Section _________. a) Section 8 b) Section 9 c) Section 7 d) Section 10 98. In terms of Section 17(4B) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to the Industrial Finance Corporation of India, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the Central Government or of any State Government or repayable on the expiry of fixed periods not exceeding __________ from the date of such loan or advance, against the securities of Central Government of any maturity or against bonds and debentures issued by the said Corporation and guaranteed by the Central Government and maturing within a period not exceeding 18 months from the date of such loan or advance. a) 6 months b) 9 months c) 18 months d) 12 months 99. In terms of Section 8(4) of the RBI Act, 1934, the Governor and a DG are eligible for re-appointment. Whether this statement is TRUE or FALSE? a) True b) Partially False c) False d) None of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 100.In terms of Section 9(3) of the RBI Act, 1934, every member of a Local Board shall hold office for a term of ______ years. a) 5 years b) 6 years c) 4 years d) 8 years 101.In terms of Section ___________ of the RBI Act, 1934, the salaries and allowances of the Governor and DGs of the RBI will be determined by the Central Board, with the approval of the Central Government. a) Section 8(1) b) Section 8(4) c) Section 8(3) d) Section 8(2) 102.In terms of Section 17(4BB) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to any FI notified by the Central Government(CG), repayable on demand or on the expiry of fixed periods not exceeding ___________ from the date of such loan or advance, against securities of the CG or of any State Government (SG) or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of CG or of any SG, of any maturity, or against bonds and debentures issued by that FI and guaranteed by the CG or any SG and maturing within a period of not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted to a FI under this Section shall not at any time, exceed in the aggregate 60% of the paid-up share capital thereof. a) 180 days b) 90 days c) 60 days d) 120 days 103.In terms of Section _____________ of the RBI Act, 1934, the Bank is generally, the doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the discharge of its duties under this RBI Act, 1934. a) Section 17(15) b) Section 17(14) c) Section 17(16) d) Section 17(17) 104.In terms of Section 6 of the RBI Act, 1934, the RBI can establish branches or agencies in any places outside India with the prior approval of the Central Government. Whether this statement is TRUE or FALSE? a) True b) Partially False c) False d) Partially True 105.In terms of Section 17(2)(c) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in India and bearing the signature of a scheduled bank, and issued or drawn for the purpose of holding or trading in securities of the Central Government or a State Government and maturing within ________ days from the date of such purchase or rediscount, exclusive of days of grace. a) 60 days b) 90 days c) 45 days d) 180 days Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 106.In terms of Section 10(3) of the RBI Act, 1934, a Deputy Governor is exempted from Section 10(1)(a), (1)(d) and (1)(e) and eligible to be a Director or a member of the ______________. a) Central Board b) Any Committee constituted by the RBI c) Any Committee constituted by the Central Government d) Local Board 107.In terms of Section ______ of the RBI Act, 1934, the Central Government may remove from office the Governor or a DG or any other Director or any member of a Local Board. a) Section 10 b) Section 9 c) Section 11 d) Section 12 108.In terms of Section 17(12AB)(b) of the RBI Act, 1934, “_____________” means an instrument for lending funds by purchasing securities of the Central Govt. or a State Government or of such securities of a local authority as may be specified in this behalf by the CG or foreign securities, with an agreement to resell the said securities on a mutually agreed future date at an agreed price which includes for the funds lent. a) Standing Deposit Facility b) Reverse Repo c) Repo d) Marginal Standing Facility 109.In terms of Section _________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to any FI notified by the Central Government(CG), repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any State Government (SG) or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of CG or of any SG, of any maturity, or against bonds and debentures issued by that FI and guaranteed by the CG or any SG and maturing within a period of not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted to a FI under this Section shall not at any time, exceed in the aggregate 60% of the paid-up share capital thereof. a) Section 17(4BB) b) Section 17(4B) c) Section 17(4BBBB) d) Section 17(4BBB) 110.In terms of Section 8(1)(b) of the RBI Act, 1934, the Directors of the Central Board includes _______ Directors to be nominated by the Central Government, one from each of the four Local Boards as constituted by Section 9. a) Three b) Four c) Five d) Six 111.The Section _________ of the RBI Act, 1934, deals with the contribution to the initial capital of the Unit Trust. a) Section 17(4E) b) Section 17(4G) c) Section 17(4F) d) Section 17(4H) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 112.In terms of Section 13(1) of the RBI Act, 1934, the Meetings of the Central Board shall be convened by the Governor at least six times in each year and at least _________ in each quarter. a) Once b) Twice c) Thrice d) None of the above 113. Match the following related to Section 8 of the Chapter II: a) Section 8(1)(a) (i) 10 Directors nominated by the CG b) Section 8(1)(b) (ii) 2 Govt Officials nominated by the CG c) Section 8(1)(c) (iii) a Governor and not more than 4 DGs d) Section 8(1)(d) (iv) 4 Directors one from each of the 4 LBs e) a-iv b-i c-ii d-iii f) a-iv b-iii c-i d-ii g) a-ii b-iv c-i d-iii h) a-iii b-iv c-i d-ii 114.In terms of Section __________ of the RBI Act, 1934, the Bank shall be authorised to purchase, purchase from and sale to scheduled banks of foreign exchange. a) Section 17(3)(b) b) Section 17(3)(a) c) Section 17(3)(c) d) None of the above 115.In terms of Section 17(4BB) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to any FI notified by the Central Government(CG), repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any State Government (SG) or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of CG or of any SG, of any maturity, or against bonds and debentures issued by that FI and guaranteed by the CG or any SG and maturing within a period of not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted to a FI under this Section shall not at any time, exceed in the aggregate ___________% of the paid-up share capital thereof. a) 50% b) 70% c) 60% d) 80% 116.In terms of Section ______ of the RBI Act, 1934, no two persons who are partners of the same mercantile firm or are Directors of the same private company or one of whom is the general agent of or holds a power of procuration from the other or from a mercantile firm of which the other is a partner, may be Directors or members of the same Local Board at the same time. a) Section 10(2) b) Section 9(2) c) Section 11(2) d) None of the above 117.In terms of Section 8(2) of the RBI Act, 1934, the Governor and DGs should may not require to devote their whole time to the affairs of the Bank. Whether this statement is TRUE or FALSE? a) False b) Partially False c) True d) Partially True Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 118.In terms of Section 9(3) of the RBI Act, 1934, every member of a Local Board shall not be appointed for more than two terms that is, for a maximum period of ________ years either continuously or intermittently. a) 4 years b) 10 years c) 6 years d) 8 years 119.In terms of Section 17(4G) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to and purchasing of bonds and debentures of the EXIM Bank or the Reconstruction Bank or the SIDBI out of the _______________ established under Section 46C. a) National Industrial Credit (Long Term Operations) Fund b) National Housing Credit (Long Term Operations) Fund c) National Rural Credit (Long Term Operations) Fund d) National Rural Credit (Stabilisation) Fund 120.In terms of Section ______ of the RBI Act, 1934, the members of the Local Board shall elect from amongst themselves one person to be the Chairman of the Board. a) Section 9(1) b) Section 9(2) c) Section 9(3) d) Section 9(4) 121.In terms of Section 8(2) of the RBI Act, 1934, the salaries and allowances of the Governor and DGs of the RBI will be determined by the _____________, with the approval of the Central Government. a) Central Board b) FSDC c) Secretary, DFS, MOF d) Secretary’s Department, CO 122.In terms of Section 17(4BB) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to __________________, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any State Government (SG) or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against the securities of CG or of any SG, of any maturity, or against bonds and debentures issued by that FI and guaranteed by the CG or any SG and maturing within a period of not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted to a FI under this Section shall not at any time, exceed in the aggregate 60% of the paid-up share capital thereof. a) LIC b) SFC c) Any FI notified by the CG d) GIC 123.In terms of Section 17(3)(a) of the RBI Act, 1934, the Bank shall be authorised to purchase, purchase from and sale to scheduled banks of __________________. a) Derivatives b) Forex c) Repo transactions d) Govt transactions Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 124.In terms of Section ______ of the RBI Act, 1934, where any casual vacancy occurs in the office of a Director other than the vacancies provided for in 12(1), the vacancy shall be filled by the Central Government. a) Section 13(4) b) Section 11(4) c) Section 12(4) d) Section 10(4) 125.In terms of Section 11 (2) of the RBI Act, 1934, a Director nominated under Section 8(1) (c) or 8(1)(d) shall cease to hold office if without leave from the Central Board he absents himself from ________ consecutive meetings of the Board convened under Section 13(1). a) Two b) Three c) Four d) None of the above 126.In terms of Section _____________ of the RBI Act, 1934, the Bank shall be authorised to provide facilities for training in banking and for the promotion of research, where, in the opinion of the Bank, such provision may facilitate the exercise by the Bank of its powers and functions, or the discharge of its duties. a) Section 17(15B) b) Section 17(15C) c) Section 17(15) d) Section 17(15A) 127.In terms of Section 17(4BBB) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to ___________ , repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or repayable on demand or within a period of 18 months from the date of such loan or advance against the security of the bonds of the Unit Trust issued with the approval of and guaranteed by the CG or for the purpose of any scheme other than the first unit scheme under the Unit Trust of India Act, 1963 on such terms and conditions and against the security of such other property of the Unit Trust as may be specified in this behalf by the Bank. a) LIC b) SFC c) Unit Trust d) GIC 128.Which one of the following Sections of the RBI Act, 1934 deals with disqualifications of the Directors and Members of the Local Boards? a) Section 11 b) Section 8 c) Section 9 d) Section 10 129.In terms of Section ______________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to and purchasing of bonds and debentures of the EXIM Bank or the Reconstruction Bank or the SIDBI out of the National Industrial Credit (Long Term Operations) Fund established under Section 46C. a) Section 17(4F) b) Section 17(4G) c) Section 17(4GG) d) Section 17(4H) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 130.In terms of Section 6 of the RBI Act, 1934, the RBI can establish branches or agencies in any places outside India with the prior approval of the Central Board. Whether this statement is TRUE or FALSE? a) True b) Partially False c) False d) Partially True 131.In terms of Section __________ of the RBI Act, 1934, any four Directors may require to Governor to convene a meeting of the Central Board at any time and the Governor shall forthwith convene a meeting accordingly. a) Section 13(3) b) Section 13(2) c) Section 13(1) d) Section 13(4) 132.In terms of Section 17(3)(b) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange (including treasury bills) drawn in or on any place in any country outside India which is a member of the IMF and maturing in the case of bills of exchange arising out of any bona fide transaction relating to the export of goods from India, within ___________ days and in any other case within 90 days from the date of such purchase or rediscount, provided that no such purchase, sale or rediscount shall be made in India except with a schedule bank or a State co-operative bank. a) 60 days b) 90 days c) 45 days d) 180 days 133.In terms of Section _____________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Unit Trust, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or repayable on demand or within a period of 18 months from the date of such loan or advance against the security of the bonds of the Unit Trust issued with the approval of and guaranteed by the CG or for the purpose of any scheme other than the first unit scheme under the Unit Trust of India Act, 1963 on such terms and conditions and against the security of such other property of the Unit Trust as may be specified in this behalf by the Bank. a) Section 17(4B) b) Section 17(4BB) c) Section 17(4BBB) d) Section 17(4BBBB) 134.In terms of Section 8(1)(c) of the RBI Act, 1934, the Directors of the Central Board includes _______ Directors to be nominated by the Central Government. a) Ten b) Two c) Nine d) Seven 135.The Section ________ of the RBI Act, 1934, deals with the purchase and sale of shares in or the capital of the National Bank, the Deposit Insurance Corporation, the State Bank or any other bank or FI notified by the Central Government in this behalf. a) Section 17(8A) b) Section 17(8) c) Section 17(8B) d) Section 17(8C) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 136.In terms of Section 17(12AB)(a) of the RBI Act, 1934, “_____________” means an instrument for borrowing funds by selling securities of the Central Govt. or a State Government or of such securities of a local authority as may be specified in this behalf by the CG or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes for the funds borrowed. a) Standing Deposit Facility b) Reverse Repo c) Repo d) Marginal Standing Facility 137.In terms of Section _______ of the RBI Act, 1934, the Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest. a) Section 6(1) b) Section 7(1) c) Section 8(1) d) None of the Above 138.In terms of Section _______ of the RBI Act, 1934, the Governor or if for any reason he is unable to attend, the DG authorised by the Governor under the proviso to Section 8(3) to vote for him, shall preside at meetings of the Central Board and in the event of an equality of votes, shall have a second or casting vote. a) Section 13(1) b) Section 13(2) c) Section 13(3) d) Section 13(4) 139.In terms of Section 8(1)(d) of the RBI Act, 1934, the Directors of the Central Board includes _______ Government officials to be nominated by the Central Government. a) Ten b) One c) Nine d) Two 140.In terms of Section _________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any SG or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the CG or of any SG, of any maturity, or against bonds and debentures issued by the Corporation to which the loan or advance is made and guaranteed by the CG or a SG, and maturing within a period not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted shall not at any time exceed, in the aggregate, Rs.3 crores in the case of the Central Warehousing Corporation and Rs.50 lakh in the case of a State Warehousing Corporation. a) Section 17(4C) b) Section 17(4B) c) Section 17(4A) d) Section 17(4D) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 141. Match the following related to Section 8 of the Chapter II: a) A Director nominated under Sec 8(1)(c) (i) not more than 4 years b) Local Board Members (ii) pleasure of the central govt. c) A Director nominated under Sec 8(1)(d) (iii) not more than 4 years d) Governor and a DG (iv) not more than 5 years a) a-iv b-i c-ii d-iii b) a-iv b-iii c-i d-ii c) a-iii b-i c-ii d-iv d) a-iii b-iv c-i d-ii 142.In terms of Section 17(3)(b) of the RBI Act, 1934, the Bank shall be authorised to purchase, sale and rediscount of bills of exchange (including treasury bills) drawn in or on any place in any country outside India which is a member of the ______ and maturing in the case of bills of exchange arising out of any bona fide transaction relating to the export of goods from India, within 180 days and in any other case within 90 days from the date of such purchase or rediscount, provided that no such purchase, sale or rediscount shall be made in India except with a schedule bank or a State co-operative bank. a) IMF b) World Bank c) Basel Committee d) SAARCFINANCE 143.In terms of Section ___________ of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to and purchasing of bonds and debentures of the National Housing Bank out of the National Housing Credit (Long Term Operations) Fund established under Section 46D. a) Section 17(4F) b) Section 17(4G) c) Section 17(4GG) d) Section 17(4H) 144.Which one of the following businesses is NOT mentioned in Section 19 towards the business the Bank may not transact? a) Engage in trade or otherwise have a direct interest in any commercial, industrial or other undertaking b) Purchase the shares of any banking company or of any other company or grant loans upon the security of any such shares c) Advance money on mortgage of, or otherwise on the security of, immovable property or documents of title relating thereto, or become the owner of immovable property, except so far as is necessary for its own business premises and residences for its officers and servants d) Make loans or advances e) Draw or accept bills payable otherwise than on demand f) Not to allow interest on deposits or current accounts a) Only a, c, and e b) Only f c) All of the above d) None of the above 145.In terms of Section _________ of the RBI Act, 1934, the Central Board, if in its opinion it is necessary in the public interest so to do, permit the Governor or a Deputy Governor to undertake, at the request of the Central Government or any State Government, such part-time honorary work, whether related to the purposes of the RBI Act, 1934 or not, as is not like to interfere with his duties as Governor or Deputy Governor, as the case may be. a) Section 8(2) b) Section 8(4) c) Section 8(3) d) Section 8(1) Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 146.In terms of Section 17(4D) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Deposit Insurance Corporation in such manner and on such terms as may be determined by the ___________. a) Central Government b) Central Board c) Governor d) DG 147.In terms of Section 11(5) of the RBI Act, 1934, the nomination as Director or member of a Local Board of any person who is a member of Parliament or the Legislature of any State shall be void, unless, within __________ of the date of his nomination, he ceases to be such member and if any Director or member of a Local Board is elected or nominated as a member of Parliament or any such Legislature, he shall cease to be a Director or member of the Local Board as from the date of such election or nomination as the case may be. a) One month b) Four months c) Three months d) Two months 148.In terms of Section 13(3) of the RBI Act, 1934, the Governor or if for any reason he is unable to attend, the DG authorised by the Governor under the proviso to Section ______ to vote for him, shall preside at meetings of the Central Board and in the event of an equality of votes, shall have a second or casting vote. a) Section 8(1) b) Section 8(2) c) Section 8(3) d) Section 8(4) 149.In terms of Section 8(4) of the RBI Act, 1934, the Governor and a DG shall hold office for such term not exceeding _______ years as the Central Government may fix when appointing them and shall be eligible for re-appointment. a) 4 years b) 5 years c) 3 years d) 6 years 150.In terms of Section _____________ of the RBI Act, 1934, the Bank shall be authorised to exercise of powers and functions and the performance of duties entrusted to the Bank under this RBI Act or under any other law for the time being in force. a) Section 17(15) b) Section 17(15C) c) Section 17(15B) d) Section 17(15A) 151.In terms of Section 17(4C) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any SG or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the CG or of any SG, of any maturity, or against bonds and debentures issued by the Corporation to which the loan or advance is made and guaranteed by the CG or a SG, and maturing within a period not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted shall not at any time exceed, in the aggregate, Rs.______________ in the case of the Central Warehousing Corporation and Rs.50 lakh in the case of a State Warehousing Corporation. a) Rs.1 crore b) Rs.2 crores c) Rs.3 crores d) Rs.5 crores Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 152.In terms of Section 9(4) of the RBI Act, 1934, a Local Board shall advise the Central Board on such matters as may be generally or specifically referred to it and shall perform such duties as the ___________ may delegate to it. a) Central Board b) Central Government c) Governor d) Any Director of the Central Board 153.The Section ________ of the RBI Act, 1934, deals with the purchase and sale of securities of the CG or a SG of any maturity or of such securities of a local authority as may be specified in this behalf by the CG on the recommendation of the Central Board, provided that securities fully guaranteed as to principal and interest by any such Government or authority shall be deemed for the purposes of this clause to be securities of such government or authority. a) Section 17(8) b) Section 17(6) c) Section 17(5) d) Section 17(9) 154.In terms of Section _____________ of the RBI Act, 1934, the validity of any loan or advance granted by the Bank in pursuance of the provisions of the RBI Act shall not be called in question merely on the ground of non-compliance with the requirements of such other law as aforesaid or of any resolution, contract, memorandum, articles of association or other instrument, where a loan or advance has been granted under Section 17(3A) or Section 17(3B) or Section 18(3) by the Bank to any person has been applied by such person, wholly or in part, in making a loan or advance to any borrowers, any sum received by the borrowing bank on account of BoE in respect of which the declaration under Section 17(3A)(i) has been furnished or in repayment or realisation of the outstanding loans and advances referred to Section 17(3B)(ii) or by the borrowing bank or any other person in repayment or realisation of loan and advances granted to a borrower out of funds obtained by it or by him from the Bank under Section 18, shall be utilised only for the repayment by the borrowing bank or other person, as the case may be, of the amounts due to be repaid by it or by him to the Bank and shall be held by it or by him in trust for the Bank, until such time as the amounts are so repaid. a) Section 17(15A) b) Section 17(16A) c) Section 17(18A) d) Section 17(17A) 155.In terms of Section 17(3A) of the RBI Act, 1934, the Bank shall be authorised to make to any scheduled bank or State co-operative bank of loans and advances, against promissory notes of such bank, repayable on demand or on the expiry of fixed periods not exceeding ________ days. a) 60 days b) 90 days c) 45 days d) 180 days 156.In terms of Section _______ of the RBI Act, 1934, the general superintendence and direction of the affairs and business of the Bank shall be entrusted to a Central Board of Directions which may exercise all powers and do all acts and things which may be exercised or done by the Bank. a) Section 6(2) b) Section 8(2) c) Section 7(2) d) None of the above Prepared by S. Purushothaman (Dec 12, 2020) 666 MCQs (with answers) on RBI ACT, 1934 – All Chapters 157.In terms of Section 8(7) of the RBI Act, 1934, a retiring Director shall be eligible for re-nomination. Whether this statement is TRUE or FALSE? a) False b) True c) Partially False d) None of the above 158.In terms of Section 12(1) of the RBI Act, 1934, an Officer of the Bank may be recommended by the Central Board to the Central Government appointing him to officiate for the Governor or a DG, if they render incapable of executing duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment. In this regard, he would be exempted from the Section ____________ of the Act. a) Section 10(1)(d) b) Section 11(1)(d) c) Section 13(1)(d) d) Section 12(1)(d) 159.In terms of Section 17(4C) of the RBI Act, 1934, the Bank shall be authorised to make the loans and advances to Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, repayable on demand or on the expiry of fixed periods not exceeding 90 days from the date of such loan or advance, against securities of the CG or of any SG or repayable on the expiry of fixed periods not exceeding 18 months from the date of such loan or advance, against securities of the CG or of any SG, of any maturity, or against bonds and debentures issued by the Corporation to which the loan or advance is made and guaranteed by the CG or a SG, and maturing within a period not exceeding 18 months from the date of such loan or advance, provided that the amount of loans and advances granted shall not at any time exceed, in the aggregate, Rs.3 crore in the case of the Central Warehousing Corporation and Rs._____________ in the case of a State Warehousing Corporation. a) Rs.1 crore b) Rs.50 lakh c) Rs.75 lakh d) Rs.1.5 crore 160.In terms of Section ______________ of the RBI Act, 1934, the Bank shall be authorised to open an account with an office outside India of any bank, including a bank incorporated in India or the making of an agency agreement with and the acting as an agent or correspondent of any bank incorporated outside India or the principal currency authority of any country under the law for the time being in force in that country or any international or regional bank or FI formed by such principal currency authorities or foreign governments and th

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