Reserve Bank of India Act, 1934 MCQ Quiz - Objective Question with Answer for Reserve Bank of India Act, 1934 - Download Free PDF

The correct answer is option 2, i.e., Section 58 (2)

• Section 58 of the Act sub-section (2), after clause (p), a clause relating to the regulation of funds transfer through 15 electronic means between banks (ie transactions like RTGS and NEFT and other funds transfers) was inserted, to facilitate such electronic funds transfer and ensure legal admissibility of documents and records therein.
• The Code of Civil Procedure, 1908 does not bind the Cyber Appellate Tribunal. However, the principles of natural justice guide it and it is subject to other provisions of the Act. The Tribunal has powers to regulate its own procedure.

As per the RBI notification, titled ‘Financial inclusion Access to Banking Services – Basic Savings Bank Deposit Account,” issued in August 2012, existing basic banking ‘no-frills’ accounts should be converted to’ Basic Savings Bank Deposit Account.’ The step was taken to do away with the stigma associated with the nomenclature ‘no-frills’ account and making the basic banking facilities available in a more uniform manner across banking system.

As per a RBI guideline issued on 6 May 2014, Minors above 10 years of age can open and operate independently saving bank account and use to other facilities like ATM and cheque books. Minors can now open a savings/ fixed/ recurring bank deposit account through either his/her natural guardian or legally appointed guardian. The move aims to promote financial inclusion and bring uniformity in opening of such accounts in banks.

In a guideline issued in May 2011, the Reserve Bank of India (RBI) reduced the time that banks take to resolve customers’ complaints regarding ATM transactions to seven working days from 12 working days. Banks, which fail to resolve complaints within seven working days, will have to pay customers 100 per day as compensation.

The Reserve Bank of India had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. However, it asked the backs to convert the existing ‘no-frills’ accounts into ‘Basic Savings Bank deposit Accounts’ on 10 August 2012.

Banks have been advised by the RBI not to impose restrictions like age and income criteria of the individual for opening BSBDA. It allows customers to bank with a zero minimum balance requirement. All the existing ‘No-frills’ accounts opened by the banks have been converted into BSBDA in compliance with the guidelines issued on August 22, 2012 by the Reserve Bank of Indian (RBI).

Functions of Assets Reconstruction Company: 
As per the RBI’s Notification No. DNBS.2/CGM (CSM)-2003, dated April 23, 2003, Assets Reconstruction Company performs the following functions:
1.    Acquisition of financial assets (as defined u/s 2(L) of SRFAESI Act, 2002) 
2.    Change or takeover of Management / Sale or Lease of Business of the Borrower 
3.    Rescheduling of Debts 
4.    Enforcement of Security Interest (as per section 13(4) of SRFAESI Act, 2002) 
5.    Settlement of dues payable by the borrower

A “Consent Clause” is now incorporated in loan documents so that bank can publish names of defaulters of loans.

Securitized Company should be an independent company, registered with RBI and it will be a public financial institution.

A cheque is presented for payment though clearing house but due to certain reasons, is returned unpaid. The returning memo is enclosed to comply with RBI clearing house rules.