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

Which of the following matters is specifically listed in Section 58(2) of the RBI Act, 1934 as one on which the Central Board may make regulations?

The regulation of fund transfer through electronic means between banks, or between banks and other specified financial institutions, is expressly listed in Section 58(2)(pp). Licensing of new banks, repo rate fixation and dividend fixation are not among the listed regulation-making matters.

  1. AThe regulation of fund transfer through electronic means between banks or between banks and certain other financial institutionsCorrect
  2. BThe licensing of new commercial banks
  3. CThe fixing of the repo rate every quarter
  4. DThe fixing of dividends payable by scheduled banks

Explanation

Clause (pp) of Section 58(2) covers regulating electronic fund transfers between banks, or between banks and the financial institutions referred to in section 45-I(c). That includes the conditions of participation, the manner of transfer and the participants' rights and obligations. The other options are not listed there.

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