⚖️ Banking Regulations and Laws Quiz for IBPS Banking Exams

Test your knowledge about banking regulations, acts, and legal framework governing Indian banks. This quiz covers important banking laws, regulatory bodies, and compliance requirements.

🎯 Quiz Overview

Quiz Details

• Total Questions: 18
• Time Allotted: 15 minutes
• Difficulty Level: Medium-Hard
• Topics Covered: Banking laws, regulations, compliance

Key Topics

• Banking Regulation Act
• RBI Act and powers
• Banking Ombudsman
• SARFAESI Act
• FEMA regulations
• KYC and AML norms

📝 Start the Quiz

📚 Study Material for Banking Regulations

Key Banking Acts

Banking Regulation Act, 1949

• Purpose: Regulate banking companies in India
• Applicable to: All banking companies
• Key Provisions: Licensing, capital requirements, management
• Section 6: Banking business definition
• Section 9: Prohibition of trading activities

Reserve Bank of India Act, 1934

• Purpose: Constitution and functions of RBI
• Key Functions: Monetary policy, currency management
• Sections 17-21: Currency management
• Section 22: Sole right to issue currency
• Section 42: Cash Reserve Ratio (CRR)

Negotiable Instruments Act, 1881

• Purpose: Regulates negotiable instruments
• Key Instruments: Cheques, promissory notes, bills of exchange
• Section 6: Cheque definition
• Section 138: Dishonour of cheque
• Section 138A: Power to direct compensation

Important Banking Regulations

SARFAESI Act, 2002

• Full Form: Securitisation and Reconstruction of Financial Assets
• Purpose: Recovery of non-performing assets
• Section 13: Enforcement of security interest
• Features: Sale of secured assets without court intervention
• Applicability: Banks and financial institutions

FEMA, 1999

• Full Form: Foreign Exchange Management Act
• Purpose: Regulate foreign exchange transactions
• Replaced: FERA (Foreign Exchange Regulation Act)
• Key Features: Liberalized approach
• Regulatory Body: RBI and ED (Enforcement Directorate)

Prevention of Money Laundering Act, 2002

• Purpose: Prevent money laundering activities
• Key Provisions: Record keeping, customer identification
• Enforcement Agency: Enforcement Directorate
• Reporting Requirements: Suspicious transaction reports

Banking Ombudsman Scheme

Overview

• Established: 1995 (revised 2002, 2006, 2017)
• Purpose: Grievance redressal mechanism
• Coverage: All scheduled commercial banks
• Authority: RBI appointed Banking Ombudsman

Types of Complaints

• Deficiency in service: Delayed payments, incorrect entries
• Credit card issues: Billing disputes, unauthorized charges
• Loan matters: Sanction, disbursement, foreclosure
• ATM issues: Failed transactions, card retention

KYC and AML Norms

KYC (Know Your Customer)

• Purpose: Customer identification and verification
• Components: Identity proof, address proof, photograph
• Documents: Aadhaar, PAN, voter ID, passport
• Periodicity: Periodic update every 2 years

AML (Anti-Money Laundering)

• Purpose: Prevent money laundering activities
• Key Requirements: Customer due diligence, record keeping
• Reporting: Suspicious transaction reports (STRs)
• Threshold: Cash transactions above ₹10 lakh

📊 Important Regulatory Bodies

Reserve Bank of India (RBI)

• Role: Central banking authority
• Functions: Monetary policy, banking regulation
• Governor: Chief executive officer
• Headquarters: Mumbai

Securities and Exchange Board of India (SEBI)

• Role: Capital market regulator
• Functions: Protect investors, regulate markets
• Chairman: Chief executive officer
• Headquarters: Mumbai

Insurance Regulatory and Development Authority (IRDAI)

• Role: Insurance sector regulator
• Functions: Protect policyholders, regulate insurance
• Chairman: Chief executive officer
• Headquarters: Hyderabad

🔗 Related Resources

• Banking Awareness Complete Guide
• RBI Functions Quiz
• Banking Terms Quiz
• Mock Test Series

Ready to test your knowledge of banking regulations? Click the Start Quiz button above! ⚖️

Last Updated: December 2024 | Questions Updated Regularly | Aligned with IBPS Exam Pattern