Banking Law Questions and Answers Part-2

1. When did the Reserve Bank of India notify the draft regulations relating to the Credit Information Companies (Regulation) Act, 2005?
a) April 5, 2006
b) May 26, 2006
c) June 29, 2007
d) September 30, 2005

Answer: a

2. Which act allows banks and other financial institution to auction residential or commercial properties to recover loans?
a) Industrial Disputes Act, 1947
b) Foreign Exchange Management Act, 1999
c) Banking Regulation Act, 1949
d) SARFAESI Act, 2002

Answer: d

3. Banks are required to maintain SLR under which act?
a) Section 24 of the Banking Regulation Act
b) Section 35 of the Negotiable Instrument Act, 1881
c) Section 24 of RBI Act
d) Section 40 of Indian Contract Act, 1872

Answer: a

4. Which of the following is the clearing agency for Government securities?
a) GOI
b) RBI
c) CCIL
d) SEBI

Answer: c

5. Whose signature does an Indian currency note bear?
a) Finance Minister
b) Finance Secretary
c) RBI Governor
d) The President

Answer: c

6. Which of the following are to be followed by Commercial Banks for risk management?
a) Basel II norms
b) Basel III norms
c) Basel I norms
d) Solvency II norms

Answer: a

7. In which year was the Banking Regulation Act passed?
a) 1969
b) 1949
c) 1955
d) 1959

Answer: b

8. Which of the following norms intends to strengthen Bank Capital requirements?
a) Basel II norms
b) Basel III norms
c) Basel I norms
d) Solvency II norms

Answer: b

9. Which of the following is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934?
a) Bank rate
b) Reverse Repo Rate
c) SLR
d) CRR

Answer: d

10. The Definition of ‘Banking’ is given in _______
a) Negotiable Instrument Act, 1881
b) RBI Act, 1934
c) Banking Regulation Act, 1949
d) Indian Contract Act, 1872

Answer: c