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QNO RBI Regulator Old Course—(SM17/SM20/SM21)
BA.01 Bhaskar CNO - BA.040 New Course -- (SM25)
The functioning of banking industry in India is regulated by the Reserve Bank of India which acts as the

Central Bank of our country. Explain
Answer  The functioning of banking industry in India is regulated by the Reserve Bank of India (RBI) which
acts as the Central Bank of our country.
 RBI is responsible for development and supervision of the constituents of the Indian financial
system (which comprises banks and non-banking financial institutions) as well as for
determining, in conjunction with the Central Government, the monetary and credit policies
keeping in with the need of the hour.
 Important functions of RBI are (Shortcut RCB)
 Regulator
Besides, RBI has also been entrusted with the responsibility of regulating the activities
of commercial and other banks. No bank can commence the business of banking or open
new branches without obtaining license from RBI. The RBI also has the power to inspect
any bank.
 Currency Related
 issuance of currency;
 regulation of currency issue;
 Banker
 acting as banker to the central and state governments; and
 acting as banker to commercial and other types of banks including term-lending
institutions.

QNO— Peculiarities involved in banking. New Course – (SM25)
BA.01.50 Bhaskar CNO - Unique
List out any four points which highlight peculiarities involved in banking operations.
Answer Peculiarities involved in Banking Operations are :
 Huge volumes and complexity of transactions;
 Wide geographical spread of banks’ network;
 Large range of products and services offered;
 Extensive use of technology;
 Strict vigilance by the banking regulator etc.

QNO— Bank - Format of Financial Statements New Course – (SM25)
BA.02.30 Bhaskar CNO - BA.090
The financial statements of a bank are prepared in a specified format. Discuss legal provisions in this
regard as applicable to financial statements of a nationalized bank
Answer  Sub-sections (1) and (2) of Section 29 of the Banking Regulations Act, 1949 deal with the form and
content of financial statements of a banking company and their authentication. These sub-sections
are also applicable to nationalised banks, State Bank of India, subsidiaries of the State Bank of
India, and Regional Rural Banks.
 Every banking company is required to prepare a Balance Sheet and a Profit and Loss Account in
the forms set out in the Third Schedule to the Act or as near thereto as the circumstances admit.
Form A of the Third Schedule to the Banking Regulation Act, 1949, contains the form of Balance
Sheet and Form B contains the form of Profit and Loss Account.
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