Question

    Under the regulation of which act can scheduled commercial bank take equity stake in a payments bank to the extent permitted?

    A Indian Societies Registration Act, 1860 Correct Answer Incorrect Answer
    B Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    C Reserve Bank of India Act, 1934 Correct Answer Incorrect Answer
    D Companies Act, 1956 Correct Answer Incorrect Answer
    E Securities and Exchange Board of India Act, 1992 Correct Answer Incorrect Answer

    Solution

    A promoter/promoter group can have a joint venture with an existing scheduled commercial bank to set up a payments bank. However, scheduled commercial bank can take equity stake in a payments bank to the extent permitted under Section 19 (2) of the Banking Regulation Act, 1949.

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