Question

The section of Banking Regulation Act dealing with Licensing of banking companies

• A. Section 22
• B. Section 23
• C. Section 25
• D. Section 26

Answer 1

Answer:

A. Section 22

BR Act:

• The BR Act and the RBI Act empower the Reserve Bank to supervise and regulate the operations of all types of banks in India.

• Banking Companies Act 1949

• Act 10 of 1949

• Banking Companies Act was passed in : 10-3-1949

• Came into force in : 16-3-1949

• Banking Companies Act was renamed as Banking Regulation Act in : 1966

• Banking Regulation Act was applicable to Co-operative Societies in 1965 and came in to force on 1.3.1966

• Total Number Sections in BR Act - 56

• Total number of Schedules in BR Act - 5

• 5 parts

• 5 Schedules

Section 21 - Power of Reserve Bank to control advances of banks

Section 22 - Licensing of banking companies

• No banks shall carryon banking business in India unless it holds a license issued by RBI

• The RBI is empowered to cancel the license

• RBI Act Section 22 - currency note issue