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Section 22 of the BR Act, 1949 confers a specific licensing power on the RBI in relation to banking companies. Which combination correctly describes that power?
Answer & Solution
Correct answer: C.
1. Section 22 of the BR Act, 1949 is the licensing section for banks.
2. The RBI has the power to issue banking licenses to banking companies.
3. The RBI also has the power to cancel licenses of banking companies under Section 22.
4. Interest-rate fixing, dividend determination and MD-salary fixing are not Section 22 functions.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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