Multiple choice

Which of the following provisions does not match in the context of loans by a bank?

  1. Banks cannot grant loans on the security of their own shares - Section 20 of BR Act

  2. Banks cannot commit themselves for granting loans on behalf of their directors - Section 20 of BR Act

  3. For remitting a loan in the name of a director, RBIs permission is required - Section 20-A of BR Act

  4. RBI can use selective credit control over banks - Section 36-A BR Act
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 36-A of BR Act deals with certain provisions of the act that do not apply to certain banking companies. Option 4 states the wrong and hence, it is the correct answer.

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