BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Securities and Exchange Board of India Act, 1992
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Reserve Bank of India Act, 1934
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Banking Regulation Act, 1949
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Negotiable Instruments Act, 1881
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Detailed explanation-1: -The Department of Currency Management has the responsibility of administering the functions of currency management, a core function of the Reserve Bank in terms of the Reserve Bank of India Act, 1934.
Detailed explanation-2: -The mechanism of putting currency into circulation and its withdrawal from circulation (i.e., expansion and contraction of currency, respectively) is effected through the Banking Department.
Detailed explanation-3: -Section 18 deals with emergency loans to banks. Section 21 states that the RBI must conduct banking affairs for the central government and manage public debt. Section 22 states that only the RBI has the exclusive rights to issue currency notes in India.
Detailed explanation-4: -In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans and advances on the security of its own shares. Section 20(1) of the Banking Regulation Act, 1949 also lays down the restrictions on loans and advances to the Directors and the firms in which they hold substantial interest.