Question

The RBI has been vested with extensive power to control and supervise commercial banking system under the-
(a) Reserve Bank of India Act, 1934
(b) The Banking Regulation Act, 1949
(c) Both (a) and (b)
(d) The Companies Act, 2013

Answer 1

The RBI has been vested with extensive power to control and supervise commercial banking system under the (b) The Banking Regulation Act, 1949

• The Banking Regulation Act, 1949 is Indian legislation that controls all the banking concerns in India.
• Reserve Bank has played a central role in formulating monetary, banking and financial policies since its inception.
• According to the Banking Regulation Act , 1949, Reserve Bank of India was empowered to inspect banks and control them in the interests of banking system, banking policy and the deposits.