Multiple choice

Section 49-A of Banking Regulation Act makes provisions for which of the following?

(a) Declaration of bank rate (b) Restrictions on the type of business that the banks cannot undertake (c) No person other than a bank is authorised to accept deposits withdrawable by cheque (d) Acceptance of deposits by banks

  1. Only (a)

  2. Only (a) and (c)

  3. Only (c)

  4. Only (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 49-A of Banking Regulation Act, 1949 states that no person, other than a banking company, the Reserve Bank, the State Bank of India or any other 21 banking institution [firm or other person that are notified by the Central Government in this behalf on the recommendation of the Reserve Bank] shall accept from the public, deposits of money withdrawable by cheque. Thus, only (c) is true. 

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