Question
The Reserve Bank of India regulates the commercial banks in matters of
Select the correct answer using the codes given below.
- liquidity of assets
- branch expansion
- merger of banks
- winding-up of banks
Select the correct answer using the codes given below.
Answer: Option D
Answer: (d)
The Reserve Bank of India is the main monetary authority of the country and besides that, in its capacity as the central bank, acts as the bank of the national and state governments.
Sometimes it happens that some of the banks close down due to non-recovery of loans or such other issues. In such conditions, people have to suffer as their money is with the bank then.
For this reason, there is a provision for winding up of the banking company under the Banking Regulation Act, 1949. The power of winding up of Bank lies in the hand of the Reserve Bank of India.
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Answer: (d)
The Reserve Bank of India is the main monetary authority of the country and besides that, in its capacity as the central bank, acts as the bank of the national and state governments.
Sometimes it happens that some of the banks close down due to non-recovery of loans or such other issues. In such conditions, people have to suffer as their money is with the bank then.
For this reason, there is a provision for winding up of the banking company under the Banking Regulation Act, 1949. The power of winding up of Bank lies in the hand of the Reserve Bank of India.
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