Every Banking company is required to use the word Bank in its name and no company other than a Banking company can use the words Bank, Banker or Banking as a part of its name as per:

BANKING GENERAL KNOWLEDGE

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

A	Section 7 of Banking Regulation Act
B	Section 7 of RBI Act
C	Section 7 of SEBI Act
D	Section 7 of Nationalization Act

Explanation:

Detailed explanation-1: -(1) No company other than a banking company shall use as part of its name 41 [or in connection with its business] any of the words “bank”, “banker” or “banking” and no company shall carry on the business of banking in India unless it uses as part of its name at least one of such words.

Detailed explanation-2: -Section 5(c) in BANKING REGULATION ACT, 1949.

Detailed explanation-3: -Banking is the business of protecting money for others. Banks lend this money, generating interest that creates profits for the bank and its customers. A bank is a financial institution licensed to accept deposits and make loans. But they may also perform other financial services.

Detailed explanation-4: -As per Section 5 (b) of Banking Regulation Act, 1949 ‘ banking ‘ means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise. Section 6 of B.R.

Detailed explanation-5: -(b) “banking company” means any company which transacts the business of banking in India and includes the State Bank 2[and a subsidiary bank], but does not include the 3[Tamil Nadu Industrial Investment Corporation Limited].

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