Question

Which act of RBI defined the conditions for a bank to come under the category of a Scheduled Bank?
a. Reserve Bank of India Act, 1949
b. Reserve Bank of India Act, 1934
c. Companies Act, 1956
d. Banking Regulation Act, 1949

Answer 1

Answer:

b. Reserve Bank of India Act, 1934

Explanation - Scheduled banks are banks that are listed in the 2nd schedule of the Reserve Bank of India Act, 1934. The bank's paid-up capital and raised funds must be at least Rs5 lakh to qualify as a scheduled bank. Scheduled banks are liable for low-interest loans from the Reserve Bank of India and membership in clearinghouses.