The Reserve Bank of India regulates the commercial banks in matters of
- 1. liquidity of assets
- 2. branch expansion
- 3. merger of banks
- 4. winding-up of banks
Select the correct answer using the codes given below.
1 and 4 only
2, 3 and 4 only
1, 2 and 3 only
1, 2, 3 and 4
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2013
1. **Liquidity of assets:** Through tools like Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
2. **Branch expansion:** Banks need prior permission from RBI to open new branches.
3. **Merger of banks:** Mergers and acquisitions involving banks require approval from the RBI.
4. **Winding-up of banks:** The RBI plays a critical role in the process of winding up or resolution of distressed banks under the provisions of the Banking Regulation Act.
All four listed points fall under the regulatory purview of the RBI.