Section 6(A) of B.R. Act has given the list of ancillary services which can be rendered by a Bank under the Banking Regulation Act. in the event that a Bank wants to undertake any other services (other than the list):

BANKING GENERAL KNOWLEDGE

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

A	The bank can seek authority from the RBI
B	Board of directors of that Bank can decide the business suitable to the bank
C	It can be decided by the Bank in the shareholders meeting
D	Bank can do so if that business is notified by the Central Government as the lawful business of a Banking company

Explanation:

Detailed explanation-1: -(n) doing all such other things as are incidental or conducive to the promotion or advancement of the business of the company; (o) any other form of business which the Central Government may, by notification in the Official Gazette, specify as a form of business in which it is lawful for a banking company to engage.

Detailed explanation-2: -Business allowed for a banking company (Section 6) Lending/Borrowing of money with/ without security, issuing travellers’ cheque, buying & selling foreign exchange notes, deposits vaults, collecting & transmitting of money & securities, buying bonds and other securities on the behalf of customers.

Detailed explanation-3: -A reference is invited to Section 6 (1)(f) of the Banking Regulation Act (B.R. Act), 1949 (AACS), in terms of which banks may also engage in managing, selling and realizing any property which may come into its possession in satisfaction, or part satisfaction, of any of its claims.

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