10 09..This does not apply to the Banking Regulation Act. has. Regulatory activities of banking companies b. Control of the management of banking companies v. Acceptance of deposits by non-bank financial institutions d. Cessation and settlement of banking activities 93 92.Foreign banks (banking companies incorporated outside India) operating in India must post a copy of the most recent audited balance sheet and profit and loss account in a conspicuous place of their head office. This must be done no later than one year. The first of July of the year in which it carries on business b. The first Monday in August v. The first Friday of November d.
The last Friday of December 277 276..What is appropriate a. The firm must have a maximum of 20 members if it is involved in a banking transaction. A limited liability company can have at least 2 members c. A limited liability company may have more than 150 members in a particular case. A partnership may have more than 20 members, but no more than 50. Otherwise, it would be treated as a limited liability company and not as a company 47 46. Under the provisions of the Reserve Bank of India Act, the entire chairman or chief executive officer of a banking company must hold qualified shares of at least 50 shares. One. It`s not 50b, it`s 100b.
You do not need to hold c qualified shares. You must have a minimum of 10 qualified shares under the provisions of the Banking Regulation Act and not the RBI d. None of these RBI Act of 1934: RBI Act of 1934 deals with the Constitution, powers and functions of the RBI. It does not deal directly with the regulation of the banking system, with the exception of section 42 for the CRR. Article 18 provides for direct remittance of BOE and PN. The law deals with: the creation, capital, management and activities of banks. Issuing banknotes, currency control, banking for the government and banks, lender of last resort. Obtain and provide credit information. Acceptance of deposits by NBFCs.
General provisions on reserve funds, credit funds, publication of bank rates, audit and accounts. Penalties for violation of regulations or instructions given. Regulation by other authorities: Regulation by other authorities A banking company is subject to the Companies Act with respect to matters relating to companies. A bank is responsible for work permits with regard to the working conditions of its workers, the opening and closing of its premises, the hiring of contract workers, etc. Banks are also required to charge income tax such as CTT, service tax, etc. and other taxes and must comply with the related rules and regulations. Banks may carry out certain non-banking transactions and they may also be subject to prudential supervision by other bodies in this respect. When trading securities such as stocks and bonds, banks are regulated by SEBI. In the case of insurance operations – IRDA and in the case of mutual funds and investment banks – RBI, SEBI. Widely regulated banks by the RBI and central government under the RBI Act and BRA. Slide 11: Key Powers of the RBI as Regulator and Supervisor: Banking Licensing Appointment and removal of bank directors/employees to regulate bank activities Give instructions to inspect and supervise bank audit of banks.
collecting, compiling and providing credit reports, mergers and liquidations and imposing sanctions. Definitions • Banking means „the acceptance of cash deposits from the public, which are repayable on demand or otherwise, for loan or investment purposes, and withdrawal by cheque, bill of exchange, order or otherwise” {Section 5(b)} • Banking company „means any business carrying on banking business in India” • Explanatory Note excludes manufacturing and commercial enterprises {Section 5(c)} • Use of the word „bank”, „Banker”, „Bank” or „Banking Company” – Article 7 32 31.Identify the law which provides that the subscribed capital of a banking company may not be less than half of its authorized capital and the paid-up capital not less than half of its subscribed capital. has. Banking Regulation Act b. Companies Act v. Reserve Bank of India Act d. All above 102,101. What is false (liquidation) a. The Central Government may appoint an official liquidator to the High Court competent to conduct the liquidation proceedings of banking companies. b. The Reserve Bank may be an official liquidator c.
The State Bank of India cannot be an official liquidator d. Unlike an individual, a banking company can also act as official liquidator 96 95.It is not required to provide the banking company with a copy of the report. One. Inspection report b. Audit report v. Research Report d. All these reports Company Acquisitions: Company Acquisitions The central government may acquire banks in certain cases as follows: The bank has failed more than once to comply with RBI instructions. The Bank shall be managed in such a way as to prejudice the interests of depositors and it is necessary to acquire its bonds in the interest of deposits or in the interests of banking policy or for better loans in general or for a specific part of the Community or territory.
With the acquisition of the company, all assets and liabilities of the acquired bank are transferred to the central government and devolved there. Power to create a system: The central government has the authority to create a system for each bank acquired, in consultation with the RBI. Shareholder compensation: Shareholders of an acquired bank are entitled to compensation. The amount is determined in accordance with Schedule 5 of the Act after consultation with UBI. Prohibition of activity (§ 8 of the BR Act): Prohibition of activity (§ 8 of the BR Act) No banking company may buy, sell or barter goods, except in the context of the realization of a guarantee given to it or held by it. For this purpose, „property” means any type of movable property, with the exception of enforceable claims. Stocks, stocks, money, bars, etc. Audit & Auditors (Section 30): Audit & Auditors (Section 30) Prepared BS&P/L a/c are audited by a person duly qualified under a law currently applicable to be a company auditor. Before appointing, reappointing, or removing one or more auditors, obtain prior approval from RBI. Special Audit: RBI may order a special audit of the banking company`s terms and conditions for such transaction or category of transactions or for such period or periods.
He may appoint a duly qualified period as auditor of the companies or instruct the auditor of the banking company to carry out such a special audit himself. The auditor shall follow these instructions and provide RBI with a report on this audit and forward a copy to the company. 193 192..Identify the role of compensation. One. The Bank granted C a loan guaranteed by F.B. The bank settled the death in favour of the minor legal heirs c. Bank for the issuance of a claim draft to a student d. Bank for issuing a credit card to one of the valued customers 113 112. Identify the inappropriate (RRB) a. The auditor`s report and the report on the operation of the Bank need not be submitted to Parliament.
RRB can carry out banking operations such as accepting deposits and lending money. c. RRB is outside the jurisdiction of the Banking Ombudsman d. The auditor`s report and the report on the functioning of the Bank must be submitted to Parliament 24 23.