Workbook- No.

1
Subject: BANKING LAWS

Name of the Participant

MU Registration No

Batch and Section

Session No. 1
Topic: RBI ACT AND BANKING REGULATION ACT

DTQs: Answer the questions by typing in the blank space (you can extend if required)
1. Discuss the qualitative and quantitative methods of monetary policy of RBI

2. List out the various functions of banks as permitted under B R Act 1949
 MCQs:
1. Which of the following is true about the functions performed by RBI -

(i) It is the Bank of Issue

(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit
OPTIONS:

(a) All the Above

(b) Both (i) and (ii)

© Both (iii) and (iv)

(d) None of the above
2. Which among the following is correct regarding currency notes issued in India?

A. Total value of currency notes constitutes the liabilities of Reserve Bank of India
B. Total value of currency notes constitutes the liabilities of Government of India
C. Total value of currency notes constitutes the assets of Government of India
D. Total value of currency notes constitutes the assets of Reserve Bank of India

3. Under section 9 of Banking Regulation Act, 1949 one of the following activities is not
permitted for commercial banks:

A. Investment in immovable properties

B. Cross selling of bancassurance products
C. Issue of guarantees
D. Collection of foreign cheques and drafts

4. Which of the following entities are not covered under the Banking Regulation Act 1949?

A. Primary Agricultural Credit Societies

B. Public Sector banks
C. Cooperative Banks
D. Foreign banks operating in India

5. Under Sec.45 (ZA to ZF) of Banking Regulation Act 1949, the following facility has been provided to
account holders of the bank under various banking transactions: -
a) Nomination Facility
b) Insurance cover for the deposits
c) Pre-mature closure of accounts
d) Statement of accounts at periodical intervals

6. Statutory Liquidity Ratio has been prescribed under:

a) Banking Regulations Act 1949
b) Companies Act 1956
c) RBI Act 1934
d) Monetary Policy of RBI

Match the following:

Fill the right match by typing (A B C D E)

1 Monetary policy A Reserve Bank of India

2 Banking license B Agency business of banks
3 Trading in goods C Central Government
4 Issue of one-rupee notes D Repo rate
5 Currency chest E Prohibited activity of banks