BANKING AFFAIRS

Detailed explanation-1: -Detailed Solution. The incorrect statement is In 1929, the Hilton Young Commission recommended the establishment of a central bank to be called the ‘Reserve Bank of India’. The Reserve Bank of India is the central bank of the country. The Reserve Bank of India commenced operations in 1935.

Detailed explanation-2: -Q. Which of the following banks is not regulated by Reserve Bank of India? State Bank of Sikkim is not regulated by Reserve Bank of India unlike other banks in India. State Bank of Sikkim is a state-owned banking institution headquartered at Gangtok, Sikkim, India.

Detailed explanation-3: -RBI has decided to allow all Regional Rural Banks (RRBs) to act as merchant acquiring bank using Aadhar Pay, BHIM app and POS terminals and shall be permitted to deploy their own devices, provided it takes prior permission from RBI and have net worth of Rs 100.00 crore or more as on March.

Detailed explanation-4: -Merchant Banking Company cannot accept or hold public deposits. The Banking Company is a corporate body other than a Non-Banking Financial Company as mentioned under the RBI Act. Merchant Banking must not engage in any activity other than those connected to securities market.