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    Question

    What are the various ground on the basis of which RBI

    may cancel a licence granted to a banking company?
    A If the company ceases to carry on banking business in India Correct Answer Incorrect Answer
    B If the company at any time fails to comply with any of the conditions imposed upon it Correct Answer Incorrect Answer
    C If at any time, any of the conditions referred to in section 22 (3) & 22(3A) is not fulfilled Correct Answer Incorrect Answer
    D Either a or b or c Correct Answer Incorrect Answer

    Solution

    Banking Regulation Act Section 22. Licensing of banking companies: (4) The Reserve Bank may cancel a licence granted to a banking company under this section-- (i) if the company ceases to carry on banking business in India; or (ii) if the company at any time fails to comply with any of the conditions imposed upon it under sub-section (1); or (iii) if at any time, any of the conditions referred to in sub-section (3) and sub-section (3A) is not fulfilled.

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