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UPSC 2013: 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.
(a)1 and 4 only
(b)2, 3 and 4 only
(c)1, 2 and 3 only
(d)1, 2, 3 and 4
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Not attemptedCorrect Answer: (d) 1, 2, 3 and 4
Under the Banking Regulation Act 1949 the RBI: (i) controls banks’ liquidity through CRR/SLR, (ii) issues licences for branch expansion (s 22), (iii) must sanction any amalgamation or merger (s 44A, 45), and (iv) can seek moratoria or winding-up of a bank (s 45). Hence all four statements are correct and option (d) is right; any option omitting one of these powers is incorrect. ([forumias.com](https://forumias.com/blog/download-upsc-prelim-2013-gs-paper-1-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 2013 Indian Economy question?▼
The correct answer is option (d): 1, 2, 3 and 4. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 42. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.