Question

The section of Banking Regulation act, which confers the power of Reserve Bank to control advances of banks

• A. Section 2
• B. Section 12
• C. Section 21
• D. Section 22

Answer 1

Answer:

C. Section 21

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 of BR Act - Power of Reserve Bank to control advances of banks

Section 22 of BR Act - 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