Multiple choice

Under provisions of which of the following acts, does the Reserve Bank of India have the power to regulate, supervise and control the banking sector?

  1. RBI Act

  2. Banking Regulation Act

  3. Negotiable Instrument Act

  4. RBI and Banking Regulation Act

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The RBI draws its regulatory powers from BOTH the RBI Act (1934) and the Banking Regulation Act (1949). The RBI Act establishes the RBI and gives it some powers, while the Banking Regulation Act specifically empowers it to regulate the banking sector. Option D correctly identifies both acts as the source of RBI's authority.

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