CS Professional · Banking and Insurance - Laws and Practice · Banking Operations
A bank incorporated outside India applies to the Reserve Bank for a licence to operate in India. Beyond the Section 22(3) conditions, which additional matter may the Reserve Bank require to be satisfied about under Section 22(3A)?
The Reserve Bank may require satisfaction that the Government or law of the bank's country of incorporation does not discriminate in any way against banking companies registered in India. This is in addition to the Section 22(3) conditions, public interest, and compliance with the Act.
- AThat the law of its home country does not discriminate against banking companies registered in IndiaCorrect
- BThat its paid-up capital exceeds that of all Indian banks
- CThat it has at least one branch in every State
- DThat its home country government guarantees its deposits
Explanation
Section 22(3A) adds that carrying on business in India will be in public interest, the Government or law of the country of incorporation does not discriminate against banking companies registered in India, and the company complies with provisions applicable to foreign banking companies. The other options appear nowhere in it.
Did you get it right without looking?
One question tells you little. A timed set on Banking Operations shows your real accuracy, how long you take and where you lose marks.
More Banking Operations questions
- Sahyadri Bank Ltd, a banking company, wants to shift its existing branch from one lane of Pune city to another locality within Pune city. Un…
- The RBI finds that Narmada Bank Ltd has failed to comply with a condition imposed on its licence under section 22(1). The RBI does not consi…
- While considering a licence application from Vindhya Bank Ltd, the Reserve Bank finds that the company has a weak capital base and poor earn…
- Gramin Vikas Regional Rural Bank needs RBI permission to open a new branch under Section 23. How must it submit its application?
- RBI decides to cancel the licence of Sagar Finance Bank Ltd because it failed to comply with a condition imposed on it when the licence was …
- Ganga Bank Ltd plans to open a stall counter at a week-long trade exhibition in Jaipur, a city where it already has a branch, to offer banki…