According to Section 24 of the Reserve Bank of India Act, 1934, the RBI is authorized to issue banknotes in denominations of 2, 5, 10, 20, 50, 100, 500, 1000, 2000, 5000, and 10000.
5. According to Section 31 of the Reserve Bank of India Act, 1934, which entities are allowed to draw, accept, make, or issue a Bill of Exchange, Hundi, or Promissory Note payable to bearer on demand?
A. Any individual or entity
B. Only RBI and Central Government
C. Banks and Financial Institutions
D. Private Companies
As per Section 31 of the Reserve Bank of India Act, 1934, only the Reserve Bank of India (RBI) and the Central Government are allowed to draw, accept, make, or issue a Bill of Exchange, Hundi, or Promissory Note payable to bearer on demand.
6. How is the Bank Rate defined under Section 49 of the Reserve Bank of India Act, 1934?
A. The standard rate at which the RBI is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under the Act
B. The rate at which the RBI lends to commercial banks
C. The rate at which the RBI buys government securities
D. The rate at which the RBI deposits money with other banks
Under Section 49 of the Reserve Bank of India Act, 1934, the Bank Rate is defined as the standard rate at which the RBI is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under the Act.
7. What is the minimum Cash Reserve Ratio (CRR) that a scheduled bank must maintain with the RBI according to Section 42(1) of the Reserve Bank of India Act, 1934?
A. 1%
B. 3%
C. 5%
D. 7%
According to Section 42(1) of the Reserve Bank of India Act, 1934, every scheduled bank is required to maintain with the RBI an average daily balance of not less than 3% of its total demand and time liabilities.
8. What is the maximum Cash Reserve Ratio (CRR) that a scheduled bank can maintain with the RBI as per Section 42(1) of the Reserve Bank of India Act, 1934?
A. 10%
B. 12%
C. 15%
D. 18%
According to Section 42(1) of the Reserve Bank of India Act, 1934, the maximum Cash Reserve Ratio (CRR) that a scheduled bank is required to maintain with the RBI is 15%.
9. According to Section 24 (2-a) of the Banking Regulation Act, what is required to be maintained by every banking company in India as Statutory Liquidity Ratio (SLR)?
A. An amount not less than a certain percentage of its total demand and time liabilities in India, in cash, gold, or unencumbered approved securities
B. An amount equal to its total demand and time liabilities in India, in cash, gold, or unencumbered approved securities
C. A fixed amount in cash, regardless of its total demand and time liabilities
D. A percentage of its net profit
According to Section 24 (2-a) of the Banking Regulation Act, every banking company in India is required to maintain an amount in cash, gold, or unencumbered approved securities that is not less than a certain percentage of its total demand and time liabilities in India. This requirement is known as the Statutory Liquidity Ratio (SLR).
10. What does the Statutory Liquidity Ratio (SLR) represent according to Section 24 (2-a) of the Banking Regulation Act?
A. The percentage of total demand and time liabilities that must be maintained in liquid form
B. The percentage of net profit that must be maintained in liquid form
C. The amount of cash reserves required to be held by a bank
D. The total assets of the bank
The Statutory Liquidity Ratio (SLR) represents the percentage of a bank's total demand and time liabilities that must be maintained in liquid form, such as cash, gold, or unencumbered approved securities.
