[Solved] Consider the following statements regarding the Banking Regulation Act, 1949: Statement 1: It empowers RBI to license and regulate banks.... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding the Banking Regulation Act, 1949: Statement 1: It empowers RBI to license and regulate banks. Statement 2: It provides insurance cover to bank deposits. Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Check Statement 1
The Act gives RBI powers to license and supervise banks.
Step 2: Check Statement 2
Deposit insurance is provided by DICGC, not under this Act.
Final Answer:
Only Statement 1 is correct → Option D
Quick Check:
Regulation = BRA; Insurance = DICGC ✅

Quick Trick: If licensing is mentioned, think Banking Regulation Act.

Common Mistakes:

MISTAKES

Mixing Banking Regulation Act with deposit insurance.

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Which of the above statements is/are correct?

Step 1: Check Statement 1

Step 2: Check Statement 2

Final Answer:

Quick Check:

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