Question:
What is the maximum number of partners in Banking business
What is the maximum number of partners in Banking business
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A banking business in India cannot have more than eight partners, as per the Banking Regulation Act, 1949.
Updated On: Oct 31, 2025
- Eight
- Ten
- Twelve
- Sixteen
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The Correct Option is A
Solution and Explanation
Step 1: Understanding the Limits on Partners in Banking.
According to the Banking Regulation Act, 1949, a banking business in India must have a minimum of two partners, and the maximum number of partners for a banking firm is restricted to eight.
Step 2: Explanation of Other Options.
- (b) Ten is not the maximum allowed number of partners in a banking business.
- (c) Twelve is also incorrect as the limit is eight.
- (d) Sixteen is far beyond the maximum limit set for a banking business.
Step 3: Conclusion.
The maximum number of partners allowed in a banking business is eight.
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