The Reserve Bank of India regulates the commercial banks in matters of 1 liquidity of assets 2 ...........

Economic Affairs Types of Banks and Banking

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The Reserve Bank of India regulates the commercial banks in matters of

1. liquidity of assets

2. branch expansion

3. merger of banks

4. winding-up of banks

Select the correct answer using the codes given below.

1 and 4 only

2, 3 and 4 only

1, 2 and 3 only

1, 2, 3 and 4

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Explanation:

1, 2, 3 and 4

The Reserve Bank of India (RBI) regulates commercial banks in various aspects, including:

Liquidity of assets: The RBI regulates and monitors the liquidity position of commercial banks to ensure their financial stability.

Branch expansion: The RBI regulates the opening of new branches by commercial banks to maintain a balanced and controlled banking network.

Merger of banks: The RBI has the authority to approve or disapprove mergers between banks, ensuring that such activities are in the interest of the banking system and the economy.

Winding-up of banks: The RBI plays a crucial role in the supervision and regulation of the banking sector, including decisions related to the winding-up or closure of banks when necessary.

Therefore, all the given options (1, 2, 3, and 4) are correct.