Commercial Applications
The Reserve Bank of India operates under a special law enacted by the Parliament. Under which category does this organization fall?
- Chartered Company
- Statutory Company
- Registered Company
- Unlimited Company
Joint Stock Company
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Answer
Statutory Company
Reason — The Reserve Bank of India is a statutory company because it is established by a Special Act of the Central Legislature. Its objectives, powers and activities are defined by the special law under which it is created. Statutory companies are generally formed to run enterprises of national importance. The State Bank of India is another example of a statutory company in India.
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