As per the reports in various newspapers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organisations /agencies issue the licence for the same?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Securities and Exchange Board of India (SEBI)
B	Indian Institute of Banking and Finance (IIBF)
C	Indian Banks’ Association
D	None of the given options is true

Explanation:

Detailed explanation-1: -License to launch a banking company in India is issued by Reserve Bank of India. For example, license to launch a banking company in India by private companies is issued by RBI since RBI is the apex bank authority.

Detailed explanation-2: -The correct answer is the Reserve Bank of India. Reserve Bank of India is the apex banking institution of India that regulates the financial sector.

Detailed explanation-3: -Licensing of banking companies Section 22 of the Act provides that no banking company is permitted to carry on the banking business in India unless it holds a license issued on behalf of the Reserve Bank. Such a license is issued only when the RBI is satisfied that all the conditions are satisfied.

Detailed explanation-4: -The Reserve Bank of India (RBI) issues licences to entities to carry on the business of banking and other businesses in which banking companies may engage, as defined and described in Sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949, respectively.

Detailed explanation-5: -In India, the RBI is the central banking authority constituted by the Reserve Bank of India Act, 1934 (’RBI Act’), and its duties and responsibilities flow from that statute.

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