BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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SEBI
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NABARD
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RBI
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SIDBI
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Detailed explanation-1: -The Reserve Bank of India is the body responsible for regulating the formal sources of credit in India. RBI started its operation on April 1, 1935. RBI was established via the RBI Act of 1934, so it is also known as a statutory body.
Detailed explanation-2: -Under the purchase and discounting bills, a borrower can obtain credit from a bank against its bills. The bank purchases or discounts the borrowers bills. The amount provided under this agreement is covered within the overall cash credit or overdraft limit.
Detailed explanation-3: -The Act restricts cooperative banks from making loans or advances on the security of its own shares. Further, it prohibits the grant of unsecured loans or advances to its directors, and to private companies where the bank’s directors or chairman is an interested party.
Detailed explanation-4: -The enactment of The Insolvency and Bankruptcy Code, 2016, marked the start of the new legislative framework for providing time bound insolvency and bankruptcy process of corporates, LLPs, partnership firms, and individuals.