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The RBI restricts withdrawals from banks under the provisions of which act?
A)
Banking Regulation Act
B)
RBI Act
C)
AML Act
D)
FEMA

Correct Answer : Option (A) - Banking Regulation Act


The Reserve Bank of India has imposed restrictions on withdrawals from Independence Co-operative Bank Limited, Nashik.
This step has been taken for six months due to the bank’s present liquidity position. As per the RBI, the restrictions will remain in force for a period of six months. This restriction has been imposed by the RBI on the provision of Banking Regulation Act, 1949.

Published On : February 17, 2021
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