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.
a) 1 and 4 only
b) 2, 3 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4

Answer: [D]

Explanation– RBI regulates Liquidity of Assets via SLR. 1 is correct thus. Existing bank requires RBI permission for expansion. 2 is correct thus. Amalgamation /Merger of two bank require RBI’s approval. Thus final answer is D.