Multiple choice

Which of the following are essential functions of banks as indicated in Section 5(b) of Banking Regulation Act?

(a) accept deposits and lend or invest such deposits (b) accept deposit and undertake non-fund based business (c) accept deposits and undertake remittance business (d) lend, invest and issue letters of credit

  1. (a) and (d) only

  2. (a) and (c) only

  3. (c) only

  4. (a) only
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As indicated in Section 5(b) of Banking Regulation Act - “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.

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