GENERAL KNOWLEDGE

Detailed explanation-1: -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. This Act was passed as Banking Companies Act, 1949.

Detailed explanation-2: -These can be categorised into domestic private sector banks (not state-owned), public sector banks (state-owned) and foreign banks. The licensing and operation of these banks is governed by the Banking Regulation Act and the guidelines issued under it.