CMA Final · Corporate and Economic Laws · Laws and Regulations related to Banking Sector

Section 58 of the RBI Act, 1934 empowers the Central Board to make regulations. Which statement about the making of such regulations is correct?

Regulations are made with the previous sanction of the Central Government and, once made, are forwarded to it and laid before each House of Parliament for a total of thirty days. They may also take effect from an earlier or later date, as Section 58 provides.

1. ARegulations need the previous sanction of the Central Government and, once made, are forwarded to the Central Government, which causes them to be laid before each House of Parliament for a total period of thirty daysCorrect
2. BRegulations take effect only from the date of publication and cannot have earlier effect
3. CRegulations are not required to be laid before Parliament
4. DRegulations need the previous sanction of the Monetary Policy Committee and are laid before the State Legislatures