Banking Awareness Questions Set 93 (Incorporation of Companies – Part I)

 

 

Banking Awareness Questions on Incorporation of Banking Companies under various acts – for upcoming banks and insurance exams SBI PO, IBPS PO/Clerk, RRB PO/Clerk, RBI, BoB, IPPB and other exams.

  1. National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up under which of the following acts?
    A) Banking Regulation Act, 1949
    B) Reserve Bank of India Act, 1934
    C) Companies Act, 1956
    D) National Housing Bank Act, 1987
    View Answer
    Option D
    Some Extra:
    National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up on 9 July 1988 under the National Housing Bank Act, 1987. Established under Section 3 of National Housing Bank Act, 1987.
    NHB is an apex financial institution for housing. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.

  2. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up under which of the following acts?
    A) Banking Regulation Act, 1949
    B) Reserve Bank of India Act, 1934
    C) Companies Act, 1956
    D) Payment and Settlement Systems Act, 2007
    View Answer
    Option C
    Some Extra:
    Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established by Reserve Bank of India (RBI) as its wholly owned subsidiary on 3rd February 1995 with a view to augmenting the production of bank notes in India to enable the RBI to bridge the gap between the supply and demand for bank notes in the country.

    The BRBNMPL has been registered as a Private Limited Company under the Companies Act 1956 with its Registered and Corporate Office situated at Bengaluru. The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal. 
  3. National Bank for Agriculture and Rural Development (NABARD), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up under which of the following acts?
    A) Banking Regulation Act, 1949
    B) National Bank for Agriculture and Rural Development Act 1981
    C) Companies Act, 1956
    D) National Bank for Agriculture and Rural Development Act 1987
    View Answer
    Option B
    Some Extra:
    National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India, headquartered at Mumbai with branches all over India.
    NABARD was established on the recommendations of B.Sivaraman Committee, (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
  4. Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up under which of the following acts?
    A) Banking Regulation Act, 1949
    B) Companies Act, 1956
    C) Deposit Insurance and Credit Guarantee Corporation Act, 1961
    D) Deposit Insurance and Credit Guarantee Corporation Act, 1951
    View Answer
    Option C
    Some Extra:
    Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, Recurring_deposit for up to the limit of Rs. 100,000 of each deposits in a bank.
  5. Bank Note Paper Mill India Private Limited was incorporated under which of the following acts?
    A) Banking Regulation Act, 1949
    B) Companies Act, 1956 
    C) Reserve Bank of India Act, 1934
    D) Companies Act, 2013
    View Answer
    Option B
    Some Extra:
    Bank Note Paper Mill India Private Limited has been incorporated and registered on October 13, 2010 by Registrar of Companies, Bangalore under the Companies Act 1956 with its registered and Corporate Office at Mysuru, Karnataka

  6. National Payments Corporation of India (NPCI) has been incorporated under the provisions of Section 25 of which act?
    A) Companies Act, 2013 
    B) Companies Act, 1956 
    C) Banking Regulation Act, 1949 
    D) Payment and Settlement Systems Act, 2007
    View Answer
    Option B
    Some Extra:
    National Payments Corporation of India (NPCI) is the umbrella organisation for all retail payment systems in India, which aims to allow all Indian citizens to have unrestricted access to e-payment services.

    Founded in 2008, NPCI, has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).
  7. National Payments Corporation of India (NPCI) is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of?
    A) Companies Act, 2013 
    B) Companies Act, 1956 
    C) Banking Regulation Act, 1949 
    D) Payment and Settlement Systems Act, 2007
    View Answer
    Option D
    Some Extra:
    National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
  8. A Non Banking Financial Company (NBFC) is registered under which of the following acts?
    A) Companies Act, 2013 
    B) Companies Act, 1956 
    C) Banking Regulation Act, 1949 
    D) Reserve Bank of India Act, 1934
    View Answer
    Option B
    Some Extra:
    A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.

    In India, the working and operations of NBFCs are regulated by the Reserve Bank of India (RBI).
  9. A Payments Banks is licensed as payments banks under which of the following acts?
    A) Companies Act, 2013 
    B) Payment and Settlement Systems Act, 2007
    C) Banking Regulation Act, 1949 
    D) Reserve Bank of India Act, 1934
    View Answer
    Option C
    Some Extra:
    The banks will be licensed as payments banks under Section 22 of the Banking Regulation Act, 1949. 
    Small Finance Banks are also licensed under Section 22 of the Banking Regulation Act, 1949. 
  10. A Payments Bank is registered as public limited company under which of the following acts?
    A) Companies Act, 2013 

    B) Companies Act, 1956 
    C) Banking Regulation Act, 1949 
    D) Payment and Settlement Systems Act, 2007
    View Answer
    Option A
    Some Extra:
    Small Finance Banks are also registered under Companies Act, 2013 

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