RBI in the exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 has levied a penalty of.....on the State Bank of India (SBI) for not monitoring the end use of funds in respect of one of its borrowers.

BANKING GENERAL KNOWLEDGE

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

RBI in the exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 has levied a penalty of____on the State Bank of India (SBI) for not monitoring the end use of funds in respect of one of its borrowers.

A	5 crore
B	100 crore
C	20 crore
D	1 crore

Explanation:

Detailed explanation-1: -Power of RBI to impose penalties The Banking Regulation Act, 1949 confers power on Reserve Bank of India under Section 47(A) to impose penalties if there has been any default or contravention.

Detailed explanation-2: -Section 36 mentions the powers of RBI. The Reserve Bank may prohibit banking companies from entering into a particular transaction and can advise the banking company. It can also assist the banking company by granting loans or advances under Section 18.

Detailed explanation-3: -Section 36AD. Punishments for certain activities in relation to banking companies.

There is 1 question to complete.