Banking Regulation and Monetary Policy

The Banking Ombudsman, assuming the charge of an arbitrator, shall follow the procedure as laid down under the Scheme read with the provisions of the Arbitration and Conciliation Act, 1996.

A securitization company or reconstruction company aggrieved by the order of cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which such order of cancellation is communicated to it, to the Central Government provided that before rejecting an appeal, such company shall be given a reasonable opportunity of being heard as cancellation without giving opportunity is not licit.

It is an Act to regulate securitization and reconstruction of financial assets, enforcement of security interest, and for matters connected therewith or incidental thereto. It need not to be registered with the Companies Act.

For ensuring compliance with the provisions, a banking company shall furnish to RBI, not later than 20 days after the close of the month, a monthly return, showing particulars of its Liquid Assets maintained and its Demand and Time Liabilities at close of business of each alternate Friday during the month.

Section 43A of Banking Regulation Act deals with preferential payments to depositors on liquidation of a bank.

Section 22 of the RBI Act 1934 makes provided that RBI has the sole right to issue bank notes of all denominations. Thus, Reserve Bank is responsible for the design, production and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes.

“Repatriation to India” means bringing into India the realised foreign exchange and the selling of such foreign exchange to an authorised person in India in exchange for rupees, or the holding of realised amount in an account with an authorised person in India to the extent notified by the Reserve Bank. Thus, option 3 is correct. 

Director under PML Act 2002 is appointed by Government of India.

SARFAESI is effective only for secured loans where bank can enforce the underlying security, e.g. hypothecation, pledge and mortgages. In such cases, court intervention is not necessary, unless the security is invalid or fraudulent. Any security interest created over agricultural land cannot be proceeded. SARFAESI Act is applicable in case of securities where security interest is created for repayment of the loans by any borrower. Thus, option 4 is the answer.  

The Central Government has issued the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011 and prescribed the forms to be used for the purpose of filing information for registration in respect of transactions of securitization, asset reconstruction of financial assets and security interest over property. Thus, it doesn't deal with sale of financial assets.

Correct option is (4).

In August 2014, the RBI mandated that banks must provide at least 5 free transactions per month at their own ATMs. This was part of consumer protection regulations to ensure basic banking access. The limit of 5 free transactions was the standard policy adopted.

Yes, 74% of FDI is allowed in private sector banks. 

Government gives funds to maintain the capital adequacy ratio. So, this is the correct choice. 

Land Development Banks in India are owned and controlled by State Governments. These banks provide long-term credit for agricultural activities like land development, farm mechanization, and minor irrigation. They are regulated by the Reserve Bank of India but owned by state governments.