Multiple choice

Which of the following statements regarding the inspection of banks are correct?

(a) RBI has the authority to inspect the branches of banks u/s 35 of BR Act. (b) RBI can inspect the branches of banks u/s 35A of BR Act. (c) Central Government can direct RBI to inspect the banks.

  1. Only (a) and (b)

  2. Only (b) and (c)

  3. Only (a) and (c)

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

Notwithstanding anything to the contrary contained in Section 235 of the Companies Act, 1956 (1 of 1956)], Reserve Bank at any time may, and on being directed so to do by the Central Government, shall cause an inspection to be made by one or more of its officers of any banking company and its books and accounts, and Reserve Bank shall supply to the banking company a copy of its report on such inspection. However, 35-A talks about the power of the Reserve Bank to give directions in the interest of public interest and banking policy. 

Keep practicing — related questions