Chapter: Laws relating to Banking in India
1.

In which year was the Banking Regulation Act passed?

A. 1949
B. 1955
C. 1959
D. 1969
Answer» A. 1949
2.

On which rate bases, overnight money is needed by bank from RBI?

A. MSF
B. Repo rate
C. Reverse repo
D. Bank rate
Answer» A. MSF
3.

____________________are excluded from the Banking Regulation Act 1949.

A. Public and Private Sector Banks
B. Primary Agricultural Credit Society and cooperative land mortgage banks
C. SEBI
D. Regional Rural Banks
Answer» B. Primary Agricultural Credit Society and cooperative land mortgage banks
4.

In which year, the Banking Regulation Act was amended to include cooperative banks under its purview by adding the Section 56.

A. 1964
B. 1965
C. 1986
D. 1987
Answer» B. 1965
5.

The Reserve Bank of India is given the responsibility of regulating and supervising the _________ under Reserve Bank of India Act, 1934.

A. Insurance Companies
B. Transport Companies
C. Banking Financial Companies
D. Non-Banking Financial Companies
Answer» D. Non-Banking Financial Companies
6.

In the case of a banking company incorporated outside India balance-sheet and profit and loss account shall be signed by _________ of the company.

A. Director of the principal office
B. Owner agent of the principal office
C. Manager or agent of the principal office
D. Central Government
Answer» C. Manager or agent of the principal office
7.

Copies of balance-sheets and accounts to be sent to____________.

A. RBI
B. Government of India
C. Registrar
D. Auditor
Answer» C. Registrar
8.

Who has the power to give directions to other Banking Companies?

A. RBI
B. Government of India
C. Registrar
D. Auditor
Answer» A. RBI
9.

Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issue directions in respect of stressed assets?

A. Section 35AA
B. Section 35AB
C. Section 35B
D. Section 35 BB
Answer» B. Section 35AB
10.

Change of name by a banking company only happens with the approval of __________?

A. RBI
B. Government of India
C. Registrar
D. Auditor
Answer» A. RBI
11.

Form of Balance sheet of banking Companies includes Reserve & Surplus in

A. Schedule 1
B. Schedule 2
C. Schedule 3
D. Schedule 4
Answer» B. Schedule 2
12.

Form of Balance sheet of banking Companies includes Fixed assets in

A. Schedule 8
B. Schedule 9
C. Schedule 10
D. Schedule 11
Answer» C. Schedule 10
13.

Contigent Liabilities in case of banking Companies are included in_________.

A. Schedule 9
B. Schedule 10
C. Schedule 11
D. Schedule 12
Answer» D. Schedule 12
14.

Banking company means any company which transacts the business of ________.

A. Banking only
B. Banking & Insurance
C. Banking & Foreign Exchange
D. Banking & Manufacturing
Answer» A. Banking only
15.

Managing agent includes

A. Secretaries and Treasurers
B. Where the managing agent is a company, and Director of such company, and any member thereof who holds substantial interest in such company
C. Where the managing agent is a firm, any partner of such firm
D. All of the above
Answer» D. All of the above
16.

Regional rural bank means a regional rural bank established under section 3 of the Regional Rural Banks Act, __________.

A. 1974
B. 1975
C. 1976
D. 1977
Answer» C. 1976
17.

Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, _________.

A. 1934
B. 1935
C. 1945
D. 1946
Answer» A. 1934
18.

In case of banking company incorporated outside India, aggregate value of its paid-up capital and reserve shall not be less than Rs. __________.

A. 5 Lakhs
B. 12 Lakhs
C. 15 Lakhs
D. 18 Lakhs
Answer» C. 15 Lakhs
19.

In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places of business in more than one State shall not be less than

A. 5 Lakhs
B. 12 Lakhs
C. 15 Lakhs
D. 18 Lakhs
Answer» A. 5 Lakhs
20.

According to Sec. ______, a banking company is not permitted to pay directly or indirectly by way of commission, brokerage, discount or remuneration on issues of its shares in excess of 2½% of the paid-up value of such shares.

A. 10
B. 11
C. 12
D. 13
Answer» D. 13
21.

FATCA stands for

A. Foreign Account Tax Compliance Act
B. Foreign Account Trade Company Act
C. Financial Account Tax Compliance Act
D. Fiscal Account Tax Compliance Act
Answer» A. Foreign Account Tax Compliance Act
22.

As per the provisions of which act all financial institutions have to maintain a record for all form of transactions?

A. Companies Act, 1956
B. Credit Information (Companies Regulation Act, 2005)
C. Information Technology Act, 2000
D. PMLA Act, 2002
Answer» D. PMLA Act, 2002
23.

Which of the following Act refers to the acquisition and transfer of the undertakings of certain banking companies?

A. Companies Act, 1956
B. Credit Information (Companies Regulation Act, 2005)
C. Banking Companies (acquisition and transfer of undertakings), 1970
D. Banking Regulation Act, 1949
Answer» C. Banking Companies (acquisition and transfer of undertakings), 1970
24.

Which of the following is the clearing agency for Government securities?

A. GOI
B. RBI
C. CCIL
D. SEBI
Answer» C. CCIL
25.

Banks are required to maintain SLR under which act?

A. Section 24 of the Banking Regulation Act
B. Section 35 of the Negotiable Instrument Act, 1881
C. Section 24 of RBI Act
D. Section 40 of Indian Contract Act, 1872
Answer» A. Section 24 of the Banking Regulation Act
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