BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) is the governing body for regulating and supervising the banks. Banking Regulation Act, 1949 is an Act that provides a framework for regulating the banks of India. The Act came into force on 16th March 1949. This Act gives RBI the power to control the behaviour of banks.

Detailed explanation-2: -(1) This Act may be called the Banking 1[Regulation] Act, 1949.

Detailed explanation-3: -Answer: The Salient features of the Act are to limit the dividends payments, determine minimum capital standards, forbid non-banking companies from taking deposits repayable in order, and outlaw trading to annihilate non-banking assets threats. Answer: Essentially, the banking regulation act of 1949 has 56 sections.

Detailed explanation-4: -The Reserve Bank of India can approve deposits from the central and state governments without any interest. It can acquire and discount bills of exchange from commercial banks. It can acquire foreign exchange from banks and auction it to them. It can give loans to banks and state economic corporations.

Detailed explanation-5: -The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.