Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q1: Under which legislative act does the Reserve Bank of India (RBI) issue Master Directions on Counterfeit Notes, citing powers under Section 35A and Section 56?

A
The Reserve Bank of India Act, 1934
B
The Banking Regulation Act, 1949
C
The Prevention of Money Laundering Act, 2002
D
The Bharatiya Nyaya Sanhita, 2023
✅ Correct Answer: B
The RBI issues these directions exercising powers under Section 35A and Section 56 of the Banking Regulation Act, 1949.
Understanding this legal basis is the first step in mastering the RBI Rules on Counterfeit Notes.