03 - Major Provisions of RBI Act

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Major Provisions of RBI Act for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. When was the RBI Act enacted?

[A] 1st April 1935
[B] 28th November 1934
[C] 6th March 1934
[D] 31st March 1935

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2. What can be the maximum denomination of notes as per the Section 24 of the RBI Act?

[A] ₹10,000
[B] ₹50,000
[C] ₹1,00,000
[D] No such limit exists

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3. Which section of the RBI Act allows the RBI to form rules regarding the exchange of damaged and imperfect notes?

[A] 17
[B] 21
[C] 28
[D] 42(1)

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4. Which section of the RBI allows the RBI to provide loans to banks and state financial corporations?

[A] 17
[B] 18
[C] 19
[D] 20

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5. Which section of RBI Act states that the RBI has the exclusive rights to issue currency notes in India?

[A] 17
[B] 19
[C] 21
[D] 22

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6. Which section of RBI is not correctly matched?

[A] Section 26 – describes the legal tender character of Indian bank notes.
[B] Section 18 – manner in which RBI can conduct business
[C] Both a and b
[D] None

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7. Which schedule of Reserve Bank of India Act, 1934 contains the list of Scheduled Banks in India?

[A] 1st
[B] 2nd
[C] 3rd
[D] 4th

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8. What should be the paid up capital of the bank to be a Scheduled Commercial Bank as per the RBI Act 1934?

[A] Rs 10 lakhs
[B] Rs 1 crore
[C] Rs 5 lakhs
[D] Rs 5 crore

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9. As per Section 31 of the RBI, who can issue and accept promissory notes that are payable on demand in India?

[A] RBI
[B] Central Government
[C] Both a and b
[D] None

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10. What is Section 7 of the RBI Act 1934?

[A] It allows RBI to buy and sell Foreign currency
[B] It empowers the government to issue directions to the RBI
[C] It allows the RBI to appoint its own staff
[D] None

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