Skip to content

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

Under section 58 of the Reserve Bank of India Act, 1934, regulations made by the Central Board must be dealt with in which manner?

The Central Board makes regulations with the previous sanction of the Central Government. Each regulation is forwarded to the Government, which lays a copy before each House of Parliament for a total of thirty days. Regulations may also take effect from an earlier or later date.

  1. AThey are made with the previous sanction of the Central Government, and each regulation is forwarded to the Central Government, which causes a copy to be laid before each House of Parliament for a total period of thirty daysCorrect
  2. BThey take effect only after being approved by a resolution of the Monetary Policy Committee
  3. CThey need no Government sanction but must be laid before the State Legislatures for sixty days
  4. DThey take effect only from the date of notification and can never have retrospective effect

Explanation

Section 58(1) requires the previous sanction of the Central Government, and section 58(4) requires the regulation to be forwarded to the Government and laid before each House of Parliament for thirty days. Section 58(3) allows a regulation to have effect from an earlier or later date, so the retrospective-effect option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Laws and Regulations related to Banking Sector shows your real accuracy, how long you take and where you lose marks.

Practise Laws and Regulations related to Banking SectorFree diagnostic mock

More Laws and Regulations related to Banking Sector questions