Banking in India

1. What is the primary purpose of the Banking Regulation Act, 1949?

• A) To regulate stock markets
• B) To provide a framework for supervising commercial banks
• C) To manage agricultural credit
• D) To oversee insurance companies

2. When did the Banking Regulation Act, 1949, originally come into force?

• A) 1 March 1966
• B) 16 March 1949
• C) 1956
• D) 2020

3. Which amendment to the Banking Regulation Act, 1949, brought cooperative banks under RBI supervision?

• A) 1956 amendment
• B) 1965 amendment
• C) 2020 amendment
• D) 1949 original act

4. Under the Banking Regulation Act, 1949, what power does the RBI have over banks?

• A) Licensing and regulating operations
• B) Setting tax rates
• C) Controlling exports
• D) Managing real estate

5. What recent amendment in 2024 to the Banking Regulation Act increased the tenure of directors in cooperative banks?

• A) From 5 to 10 years
• B) From 8 to 10 years
• C) From 10 to 15 years
• D) No such amendment

6. What is the main objective of the Payment and Settlement Systems Act, 2007?

• A) To regulate banking licenses
• B) To supervise payment systems in India
• C) To manage foreign exchange
• D) To control inflation

7. Which entity is designated as the authority under the Payment and Settlement Systems Act, 2007?

• A) SEBI
• B) Reserve Bank of India
• C) IRDAI
• D) NABARD

8. What does the Payment and Settlement Systems Act, 2007, prohibit without authorization?

• A) Opening bank branches
• B) Operating a payment system
• C) Issuing credit cards
• D) Granting loans

9. A recent amendment to the Payment and Settlement Systems Act, 2007, includes provisions for what?

• A) Banning electronic payments
• B) No charges for using electronic modes
• C) Increasing transaction fees
• D) Limiting digital wallets

10. Under the Payment and Settlement Systems Act, 2007, what power does the RBI have regarding payment systems?

• A) Issuing directions and standards
• B) Setting interest rates
• C) Regulating stock exchanges
• D) Managing government budgets