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Which of the following outcomes is expected due to effective implementation of the Banking Regulation Act, 1949?

hard Q9 of 15
Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following outcomes is expected due to effective implementation of the Banking Regulation Act, 1949?
AImproved discipline and stability in banking
BAutomatic reduction in NPAs
CHigher deposit insurance limits
DFaster insolvency resolution
Step-by-Step Solution
  1. Step 1: Identify regulatory impact

    Regulation improves system discipline.
  2. Step 2: Choose the most direct outcome

    Stability and orderly banking operations result.
  3. Final Answer:

    Improved discipline and stability in banking → Option A
  4. Quick Check:

    Strong regulation = stable banking system ✅
Quick Trick: Regulation improves order, not instant recovery.
Common Mistakes:
MISTAKES
  • Expecting regulation to directly solve NPAs.
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