Question Bank

2 questions

• Economy & Banking25 Apr 2026

  After cancellation of a banking licence, RBI must approach which forum for winding-up proceedings?

  1. A.NCLT (National Company Law Tribunal)
  2. B.Supreme Court of India
  3. C.High Court (under BR Act Section 38)
  4. D.Insolvency and Bankruptcy Board of India
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  Answer: C. High Court (under BR Act Section 38)

  Under Section 38 of the Banking Regulation Act, 1949, the RBI must approach the High Court (having jurisdiction over the bank's registered office) for winding-up proceedings of a banking company. While the Companies Act, 2013 generally vests winding-up jurisdiction with the NCLT, banking company winding-up has a specific BR Act framework that retains High Court jurisdiction.

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• Economy & Banking25 Apr 2026

  RBI's power to cancel a banking licence is provided under which provision of the Banking Regulation Act, 1949?

  1. A.Section 22
  2. B.Section 35
  3. C.Section 36AB
  4. D.Section 38
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  Answer: C. Section 36AB

  Section 36AB of the Banking Regulation Act, 1949 (added by amendment) explicitly empowers the RBI to cancel a banking licence where the operations of the bank are detrimental to depositor interests or public interest. Section 22 provides for INITIAL ISSUANCE of banking licences; Section 35 governs INSPECTIONS; Section 38 deals with WINDING-UP PROCEEDINGS in the High Court.

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