Question

The section of BR Act that deals with the maintenance of Cash reserve Ratio

• A. Section - 11
• B. Section - 13
• C. Section - 17
• D. Section - 18

Answer 1

Answer:

D. Section - 18

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

Sec. 18 - Maintenance of Cash reserve Ratio:

• Every banks have to keep a certain percentage of their Net Demand and Time Liabilities to RBI as reserves. This reserve is called Cash reserve ratio (Non schedule Bank).

• As per section 42(1) of the RBI Act, scheduled commercial banks in India are required to keep a specific percentage of total deposit with the RBI.