Multiple choice

Banks in India are allowed to undertake trending in which of the following u/s 6(1) of Banking Regulation Act?

  1. Buying of goods

  2. Selling of goods

  3. Bartering of movable assets

  4. Sale of securities

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 6(1) in Banking Regulation Act,1949 states that "in addition to the business of banking, a banking company may engage in any one or more of the following forms of businesses. They are the borrowing, raising or taking up of money, the lending or advancing of money either upon or without security, the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hoondees, promissory notes, cou­pons, drafts, bills of lading, railway receipts, warrants, deben­tures, certificates, scrips and other instruments and securities whether transferable or negotiable or not.