Question

The provisions relating to maintenance of cash reserve ratio by banks is contained in the :

• A. Negotiable Instruments Act.
• B. Banking Regulation Act
• C. Reserve Bank of India Act
• D. None of the above

Answer 1

Answer:

B. Banking Regulation Act

Banking Regulation Act

• The Banking Regulation Act , 1949 :

A comprehensive legislation governing banking operations in India enacted to :

1. Regulate banking companies
2. Ensure financial stability
3. Protect depositors interests
4. Promote sound banking practices

• The provisions relating to maintenance of cash reserve ratio by banks is contained in the Banking Regulation Act.

The Banking Regulation Act , 1949 , plays a crucial role in maintaining the stability and integrity of India' s banking system , ensuring the safety of depositors funds and promoting a healthy financial environment.