Which is incorrect with regard to powers of RBI

BANKING GENERAL KNOWLEDGE

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

A	Holds cash reserve banks
B	Controls banking system through licensing
C	Supervises Banking system through inspection
D	None of these

Explanation:

Detailed explanation-1: -Powers and functions of RBI Section 36 mentions the powers of RBI. The Reserve Bank may prohibit banking companies from entering into a particular transaction and can advise the banking company. It can also assist the banking company by granting loans or advances under Section 18.

Detailed explanation-2: -The Banking Regulation Act, 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks. These powers are exercised through on-site inspection and off site surveillance.

Detailed explanation-3: -Power of Reserve Bank to issue directions in respect of stressed assets.–(1) Without prejudice to the provisions of section 35A, the Reserve Bank may, from time to time, issue directions to any banking company or banking companies for resolution of stressed assets.

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