Banking Law

Banking includes

• Accepting of deposits

• Lending of money

• Investing of money

• All the above

Answer explanation

Section 5 (b) of the Banking Regulation Act 1949 defines banking as follows: "banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise.

Primary activity of a commercial bank includes

• Accepting of deposits

• Lending money

• Issuing letter of credit

• Both a and b

The bank that was established at the earliest point in time among the following was

• General Bank of India

• Allahabad Bank

• Bank of Madras

• Bank of Calcutta

Answer explanation

Bank of Hindustan was established in 1770. General Bank of India was established in 1786.

Allahabad Bank - 1865.

Bank of Calcutta - 1806

Bank of Madras - 1843

Which of the Acts was passed for the purpose of streamlining the functioning and activities of commercial banks in India?

• State Bank of India Act

• RBI Act

• Banking Companies Act/ Banking Regulation Act

What was Imperial Bank renamed as?

• Bank of Baroda

• General Bank of India

• Reserve Bank of India

• State Bank of India

How many banks were nationalized in 1969? (Phase 1 of Bank Nationalisation)

• 10

• 6

• 14

• 15

The majority of stake in a public sector bank is held by

• RBI

• SBI

• Govt of India

• Both RBI and GoI

Which of the following banks caters specifically to the development of rural economy?

• Public sector banks

• Old generation private sector banks

• New generation private sector banks

• Regional Rural Banks

Which banks were merged to form the Imperial Bank of India?

• Bank of Madras, Bank of Calcutta and Bank of Bombay

• Bank of Madras, and General Bank of India

• Bank of Calcutta and General Bank of India

• Bank of Bombay and General Bank of India

Answer explanation

Bank of Madras, Bank of Bombay and Bank of Calcutta were also called the Presidency Banks. They were merged to form the Imperial Bank which later got renamed as the State Bank of India.

Which among the two can avail currency chest facilities and membership to the clearance house as per the RBI Act?

• Scheduled Banks

• Non Scheduled Banks

Answer explanation

Scheduled banks are those listed in Second Schedule of the RBI Act and which fulfil the requisite criteria stipulated in the Act. One of the key privileges of a scheduled bank as opposed to a non scheduled bank is their access to clearing house and currency chest facilities of the RBI.