Q: The Reserve Bank of India regulates the commercial banks in matters of
- liquidity of assets
- branch expansion
- merger of banks
- winding-up of banks
Select the correct answer using the codes given below:
a) 1 and 4 only
b) 2, 3 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Correct Answer: Option (d)
- RBI is regulator of Banks. It regulates the commercial banks in the matters of liquidity of assets, branch expansion, etc. One could think that merger might come under CCI only but it comes both under CCI and RBI. RBI issued order to windup few banks in recent past. (Sahara India Financial Corp (SIFCL), the para banking arm of Sahara India Pariwar, Siddharth Cooperative Bank, some Banks from Gujarat). Implied from deposit insurance and credit guarantee corporation (DICGC) scheme. Hence, option (d) is correct.
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