Banking Flashcards
Current Affairs to be supplemented (As most Previous Year Questions align with the Current Affairs)
RBI is a ______ body
Statutory
RBI estd in 1935 under the RBI Act 1934
Who manages the foreign exchanges?
RBI under the FEMA (Foreign Exchange Management Act (1999))
Who is the lender of the last resort for commercial banks?
Central Bank of India (RBI)
Define FEO (Fugitive Economic Offender Act (2018))
Person who evade prosecution by fleeing the country. Aims to deter economic offenders from evading criminal prosecution by leaving the country.
- Who is an FEO?
1. Person with an arrest warrant and minimum economic offence of 100 CR
2. Person should have flew abroad - Consequences
1. Confiscation of Property
2. Bar on filing/defending civil claims
3. Difficulty in obtaining foreign travel documents
4. Loss of Reputation - How FEO is enforced?
FEO Act → Special Courts → PMLA (Prevention of Money Laundering Act (2002))
Difference between Scheduled Bank and Non - Scheduled Bank
Scheduled Banks - Schedule - II of RBI Act ✅
Non - Scheduled Banks - Schedule - II of RBI ❌
About Public Sector Banks
PSBs = Ministry of Finance/State Ministries of Finance > 50% of shares
These are also listed on stock market
There are 12 PSBs in India
About Private Banks
There are 21 Scheduled Private Banks in India
About Foreign Banks
There are 45 Foreign Banks in India
About Regional Rural Banks
The RRBs are operated by:
Centre (50%) + State (15%) + PSBs (35%)
There are 43 RRBs in India except in Sikkim, Goa, and all UTs
Constraints on Payment’s Bank
- Cannot Lend in any form
- Cannot provide Credit Cards
