Multiple choice

Which of the following statements is correct?

  1. Public sector banks have been created under a special statute.

  2. Banking companies are registered under BR Act.

  3. Subsidiaries of state bank are companies registered under Companies Act.

  4. Accepting deposits for safe custody falls under the definition of banking.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Companies like a Non-Banking Financial Company (NBFC) are the companies registered under the Companies Act, 1956 not BR Act. Subsidiary banks are defined in the State Bank of India (Subsidiary Banks) Act, 1959 and not Companies Act. Accepting deposits for safe custody falls under banking regulation act. Thus, only option 1 is correct.

Keep practicing — related questions