1. Under Section 20 of the Banking Regulation Act, 1949, what is a bank prohibited from doing?
A. Granting loans to government entities
B. Granting loans on the security of its own shares
C. Accepting deposits from non-residents
D. Engaging in trading activities
Under Section 20 of the Banking Regulation Act, 1949, a bank cannot grant loans or advances on the security of its own shares.
2. What does Section 24 of the Banking Regulation Act, 1949, require banks to maintain?
A. Statutory Liquidity Ratio (SLR)
B. Cash Reserve Ratio (CRR)
C. Capital Adequacy Ratio (CAR)
D. Provisioning against NPAs
As per Section 24 of the Banking Regulation Act, 1949, banks are required to maintain the Statutory Liquidity Ratio (SLR).
3. What action must banks take regarding unclaimed deposits under Section 26A of the Banking Regulation Act, 1949?
A. Write them off as bad debts
B. Transfer them to the central government
C. Transfer them to the RBI after 10 years
D. Retain them until claimed by the customer
Section 26A of the Banking Regulation Act, 1949, mandates that banks must transfer to the RBI all deposits that have not been operated or claimed for the last 10 years.
4. What authority is granted to the Central Government under Section 45Y of the Banking Regulation Act, 1949?
A. The power to make rules for the preservation of records
B. The power to issue currency notes
C. The power to regulate interest rates
D. The power to merge banks
Section 45Y of the Banking Regulation Act, 1949, grants the Central Government the power to make rules for the preservation of records.
5. According to Section 45Z of the Banking Regulation Act, 1949, what must banks do with paid instruments?
A. Return them to customers after keeping a true copy
B. Destroy them after 5 years
C. Store them in a central repository
D. Submit them to the RBI for audit
Section 45Z of the Banking Regulation Act, 1949, requires banks to return paid instruments to customers after keeping a true copy of such instruments.
6. Sections 45ZA to 45ZF of the Banking Regulation Act, 1949, relate to which of the following?
A. Foreign exchange transactions
B. Banking licenses
C. Nomination in deposits, safe custody, and locker accounts
D. Capital adequacy requirements
Sections 45ZA to 45ZF of the Banking Regulation Act, 1949, cover the provisions related to nomination in deposits, safe custody, and locker accounts.
7. Under Section 24 of the Banking Regulation Act, 1949, what type of assets can be used by banks to maintain the Statutory Liquidity Ratio (SLR)?
A. Cash, gold, and unencumbered approved securities
B. Only cash and gold
C. Fixed deposits with other banks
D. Foreign currency reserves
According to Section 24 of the Banking Regulation Act, 1949, banks can maintain SLR through cash, gold, and unencumbered approved securities.
8. What does Section 26A of the Banking Regulation Act, 1949, require banks to do with unclaimed deposits?
A. Transfer them to the government
B. Retain them indefinitely
C. Transfer them to the Depositor Education and Awareness (DEA) Fund
D. Return them to the depositors' legal heirs
Section 26A of the Banking Regulation Act, 1949, requires banks to transfer unclaimed deposits to the Depositor Education and Awareness (DEA) Fund.
9. What does Section 45ZA of the Banking Regulation Act, 1949, pertain to?
A. Reporting of fraud cases
B. Nomination in deposit accounts
C. Interest rate regulations
D. Procedures for bank mergers
Section 45ZA of the Banking Regulation Act, 1949, relates to the nomination in deposit accounts.
10. What is the purpose of Section 45Y of the Banking Regulation Act, 1949?
A. To regulate foreign exchange transactions
B. To grant the Central Government the power to make rules for preservation of records
C. To empower the RBI to set interest rates
D. To allow banks to issue cheques to non-resident Indians
Section 45Y of the Banking Regulation Act, 1949, grants the Central Government the power to make rules for the preservation of records.
