Multiple choice

Under provisions of which one of the following Acts, the RBI issues directives to the Banks in India?

  1. RBI Act

  2. Banking Regulation Act

  3. Essential Commodities Act

  4. RBI and Banking Regulation Act

  5. None of these
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A Correct answer
Explanation

Section 21 of the RBI Act gives the RBI power to issue directives to banks. While the Banking Regulation Act provides supervisory powers, the specific authority to issue directives comes from the RBI Act itself. This is distinct from regulatory control covered in the Banking Regulation Act.

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