RBI Act

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Indian Economy - Understanding the basics of Indian economic system

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The RBI under Section _______ of the RBI Act, 1934 has the power to give directions to NBFCs relating to the conduct of business by them.

Section 45J

Section 45K

Section 45L

Section 45M

Explanation:

Correct Option: 3 (Section 45L)

Provision under Section 45L: Section 45L of the RBI Act, 1934, grants the Reserve Bank of India (RBI) the power to give directions to Non-Banking Financial Companies (NBFCs) regarding the conduct of their business.
Purpose: This allows the RBI to regulate the operations and business practices of NBFCs to ensure they comply with regulatory standards and operate in a sound and stable manner.
Significance: The provision helps the RBI maintain the financial integrity of NBFCs, ensuring they protect the interests of depositors and stakeholders.

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