Multiple choice

Banks are required to obtain licence from RBI for commencing operation due to which of the following reasons?

  1. To make the provision of Banking Regulation Act applicable

  2. To prevent indiscriminate formation of banking companies

  3. To regulate the formation of a banking company

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is to ensure that only those banks are continuing which were operating on sound lines and to prevent indiscriminate formation of banking companies.

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