The Reserve Bank of India has directed all the banks to ensure that the names of their customers, individuals or corporates, do not appear in any list published by the Security Council Committee. This act/directive of the RBI is to ensure which of the following?

To ensure that the bank loans/advances taken by the individuals organisations are used only in those activities for which they are taken

No worries! We‘ve got your back. Try BYJU‘S free classes today!

To ensure that money deposited in the bank has not come from unknown and unauthorised sources

No worries! We‘ve got your back. Try BYJU‘S free classes today!

To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

To ensure that Indians do not go to a nation where they are being targeted for racial discrimination

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank
RBI is the apex bank and have the power to give directives. The Reserve Bank of India has directed all the banks to ensure that the names of their customers, individuals or corporates, do not appear in any list published by the Security Council Committee. This act/directive of the RBI is to ensure that no one visits a foreign nation for any illegal activity by purchaing foreign currency from a bank.

Suggest Corrections

Similar questions

Q. The Reserve Bank of India ensures that banks do not lend out all their deposits as loans.

Q68) Reserve Bank of India (RBI) on 6 August 2015 notified Section 23 of the Banking Regulation Act, 1949 -Relaxations in Branch Authorisation Policy. Some guidelines that should be followed for Merger/Closure/ Shifting of branches includes:

1) Banks may shift, merge or close any branch in urban or semi-urban areas at their discretion

2) Banks should, however, ensure that customers of the branch, which is being shifted/merged/closed, are informed well in time before actual shifting/merger/closure of the branch, so as to avoid inconvenience to them

3) It may further be ensured that branches are shifted within the same or to a larger population category, i.e. semi urban branches to semi urban or rural centres and rural branches to other rural centres.

4) Thus banks may shift their metropolitan, urban and semi urban branches outside the State, and their rural branches outside the block without prior approval of RBI

Which of the statements given above is/are incorrect?

Q. Select the correct statement/s about REPO rates:

1) Rate at which RBI lends commercial banks for securities

2) Banks ensure repurchase of securities

Q. Read the following passage carefully and answer the questions that follow:
A Reserve Bank of India panel has submitted a report on financial inclusion. It proposes that priority sector lending by banks be raised and that banks be mandated to open accounts for every adult Indian by January 2016. The recommendations do not challenge the RBI’s basic approach to financial inclusion. This approach, which has been to mandate banks to undertake financial inclusion, might have spread public sector bank branches in rural areas for some years, helped open bank accounts and directed credit, but it has stopped yielding results. What India needs is a new approach, which encourages competition and innovation, rather than more mandates.
India’s approach to financial inclusion has been bank-centric. So far, it has focused on bank nationalization, continued with government ownership of banks and their recapitalization. The way to ensure inclusion has been priority sector lending, which mandates that 40 per cent of each bank’s lending be to weaker sectors – small-scale industries, agriculture and exports – to which the bank might not have lent otherwise. The RBI panel now recommends raising this share to 50 per cent.
The panel’s recommendations are in sync with the RBI’s recent guidelines for the grant of licenses to new banks. These require that the bank have a plan for financial inclusion and that it open 25 per cent of its branches in unbanked rural areas. This approach is similar to the one that required PSU banks to open rural branches. By once again mandating financial inclusion, this time for private sector licence application, instead of focusing on competition and innovation, the RBI is essentially doing more of the same.
Financial inclusion may be defined as access to a range of financial services in a convenient, flexible, reliable and continuous manner from formal, regulated financial institutions. Even though access can be ensured by mandates, the quality parameters of access may be compromised in the process. This is seen in the low usage of accounts and the poor asset quality of priority sector portfolios. Such inclusion confuses ends with means. A bank account is meant to fulfill certain functions – simply opening an account is not enough. The panel proposes to make it mandatory for every Indian over the age of 18 to have a bank account.
An often overlooked consequence of the mandate-driven approach to inclusion, as pursued by the RBI, is that the costs of this inclusion are levied on the investors and consumers of banks. The losses from unused bank accounts and poorly performing priority sector assets are eventually borne by the investors and consumers. If the political objective of opening bank accounts is to be met, or lending to certain sectors ensured, it should be transparent as line item on the government’s budget. Instead, it is done through a cross-subsidy that effectively makes other customers pay for the political goals of a government pushing its agenda through banks.
This approach has been accompanied by a neglect of the other drivers of inclusion – competition and innovation. In the last 11 years, the Indian economy has grown rapidly, but no banking licenses have been given in this time. The trend has been that once a decade, the RBI decides to give a few licenses, but there is no window to get licenses during this period. The incumbent banks feel little or no pressure to reach out to unbanked area and people with their services. This, in turn, necessitates a mandate-driven approach to financial inclusion. Despite decades of RBI mandates, rural customers turn to informal channels and unregulated financial firms.

Chose the word/group of words which is MOST OPPOSITE meaning of the word/group of words as used in the passage:
LEVIED

A plant is kept in a dark cupboard for about 48 hours before conducting any experiment on photosynthesis in order to

(a) remove chlorophyll from the leaves.

(b) remove starch from the leaves.

(d) ensure that the leaves are free from starch.

Join BYJU'S Learning Program