CS Professional · Banking and Insurance - Laws and Practice · Banking Operations
Zenith Global Bank, incorporated outside India, applies for a licence to carry on banking business in India. In addition to the Section 22(3) conditions, which requirement does Section 22(3A) allow the RBI to check?
The RBI may require satisfaction that the Government or law of the 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's provisions applicable to banking companies incorporated outside India.
- AThat the company has at least one branch in each State
- BThat the law of its home country does not discriminate against banking companies registered in IndiaCorrect
- CThat its capital is entirely held by the Government of its home country
- DThat it has previously been licensed by the Central Government
Explanation
Section 22(3A) allows the RBI to require satisfaction that the Section 22(3) conditions are met, that banking in India by the company will be in the public interest, that the Government or law of its home country does not discriminate against banking companies registered in India, and that it complies with the Act's provisions applicable to foreign-incorporated banking companies. The other options appear nowhere in it.
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