Question

Which one of the following is not a prohibition towards a banking company, under BR Act ?

1. No banking company shall create any charge upon any unpaid capital of the company and any such charge shall be invalid.
2. No banking company shall create floating charge on the undertaking or the property of the company, if such a floating charge is created, only with the written permission of the RBI.
3. No banking company shall pay any dividend to its shares until all capitalised expenses have been completely written of.
4. No banking company incorporated in India shall have a director in its board of directors, who is a director of any other bank.
5. No banking company may pay dividend without writing of depreciation in the value of investment of approved securities, shares, debentures, bonds, write off bad debts if any.

• A. v only
• B. ii only
• C. All
• D. ii, v

Answer 1

Answer:

A. v only

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