Which of the following statements is false?
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Licence from RBI is essential to open a bank under Section 22 of BR Act.
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Every banking company has to use the word bank as part of its name.
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No company, other than a banking company, can use the word bank or banker as part of its name.
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A firm or group of individuals can use the words banking company as part of their name or for the purpose of business by giving a public notice.
Section 22 in Banking Regulation Act,1949 states that no company shall carry on banking business in India, unless it holds a licence issued on that behalf by the Reserve Bank and any such licence may be issued subject to such conditions as the Reserve Bank may think fit to impose.
Section 7 in Banking Regulation Act,1949 states that no company, other than a banking company, shall use as part of its name (or in connection with its business) any of the words “bank”, “banker” or “banking” and no company shall carry on the business of banking in India unless it uses as part of its name at least one of such words. No firm, individual or group of individuals shall, for the purpose of carrying on any business, use as part of its or his name any of the words “bank”, “banking” or “banking company”.