BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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making loans or advances
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drawing or accepting bills payable otherwise than on demand
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allowing interest on deposits or current accounts
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All of the above
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Detailed explanation-1: -In terms of section 19 of Reserve Bank of India Act, 1934 the central bank may not make loans or advances, draw or accept bills payable otherwise than on demand and allow interest on deposits or current accounts.
Detailed explanation-2: -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. Section 24 states that the maximum denomination a note can be is ₹10, 000 (US$130).
Detailed explanation-3: -In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union.
Detailed explanation-4: -45K. Power of Bank to collect information from non-banking institutions as to deposits and to give directions. 45L. Power of Bank to call for information from financial institutions and to give directions.