BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the banker to the government
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accepting deposit from commercial banks
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accepting deposit from commercial public
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issue of currency
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Detailed explanation-1: -Which entities can legally accept deposits from public? Banks, including co-operative banks, can accept deposits. Non-bank finance companies, which have been issued Certificate of Registration by RBI with a specific licence to accept deposits, are entitled to accept public deposit.
Detailed explanation-2: -Issuing of coins is not a function of the Central Bank.
Detailed explanation-3: -Hence, Issuing of Notes is not the function of a Commercial Bank. NOTE-The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.
Detailed explanation-4: -business of a non-banking financial institution are not allowed to accept deposits except from relatives specified and in the manner prescribed in the provision of Section 45-S of the RBI Act.