BNK · S01Introduction to ‘Banking’, Modern Banking System, Key Financial terms, Types of Banks & Financial InstitutionsAsked in 7 of 7 papers (Jun ’22, Dec ’22, Jun ’23, Dec ’23, Jun ’24, Jan ’25, Jun ’25)
Under the Banking Regulation Act, 1949: A manufacturing company accepts deposits from the public solely to finance its own manufacturing business and offers no cheque-or-draft withdrawal facility. Which statement best reflects section 5(c)?
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AIt is necessarily a banking company because every refundable receipt is a banking deposit
BIt becomes a banking company whenever it pays interest on the distributors’ money
CNo. Public deposits used merely to finance manufacture do not, by themselves, make it a banking company
DIt is a banking company because incorporation as a company is the only statutory requirement
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