GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RBI Act Section 2(2)
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Negotiable Instruments Act Section 1
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Banking Regulation Act Section 17
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Banking Regulation Act Section 5(b)
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Detailed explanation-1: -The responsibilities and objectives of each of the agencies are clearly defined. The RBI (RBI), which was formed under an act of parliament, viz., the Reserve Bank of India Act, 1934 (RBI Act), has the sole responsibility of supervision and regulation of banks in India.
Detailed explanation-2: -Section 35A – Power of the Reserve Bank to give directions : In the public interest or in the interest of Banking policy RBI has powers to issue, modify or cancel as it deems fit, and the banking companies or the banking company, are bound to comply with such directions.
Detailed explanation-3: -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-4: -The Reserve Bank regulates the banking functions of StCBs/DCCBs/UCBs under the provisions of Sections 22 and 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies (AACS).