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In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?
  • a)
    Initial paid-up capital should be 200 crore rupees
  • b)
    Share of promoters in paid-up capital should not be less than 40%
  • c)
    Big corporate houses are not allowed to promote any bank
  • d)
    All the above
Correct answer is option 'D'. Can you explain this answer?
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In 2001, RBI issued a set of guidelines for private sector. Which of t...
The paid up capital should be increased to 300 crore rupees in 3 years of operation.
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In 2001, RBI issued a set of guidelines for private sector. Which of t...
Introduction:
In 2001, the Reserve Bank of India (RBI) issued a set of guidelines for the private sector. These guidelines were aimed at regulating and promoting the establishment of private sector banks in India. The guidelines laid down certain requirements and restrictions to ensure the stability and integrity of the banking sector.

Details of the Guidelines:
The correct answer, option 'D', states that all of the given statements are true. Let's discuss each statement in detail:

a) Initial paid-up capital should be 200 crore rupees:
The RBI guidelines specified that private sector banks must have a minimum initial paid-up capital of 200 crore rupees. This requirement was put in place to ensure that the banks have sufficient financial strength to carry out their operations effectively and withstand any potential risks or losses.

b) Share of promoters in paid-up capital should not be less than 40%:
According to the guidelines, the share of promoters in the paid-up capital of the bank should not be less than 40%. This means that the promoters, who are individuals or entities that establish the bank, must hold a significant stake in the capital of the bank. This requirement ensures that the promoters have a vested interest in the success and stability of the bank.

c) Big corporate houses are not allowed to promote any bank:
The guidelines also restrict big corporate houses from promoting banks. This is done to prevent the concentration of economic power and to ensure that the banking sector remains diverse and competitive. By not allowing big corporate houses to promote banks, the RBI aims to maintain a level playing field for all players in the banking industry.

Conclusion:
In conclusion, the RBI issued a set of guidelines for the private sector in 2001 to regulate and promote the establishment of private sector banks. These guidelines included requirements such as a minimum initial paid-up capital of 200 crore rupees, a minimum share of promoters in the paid-up capital, and a restriction on big corporate houses promoting banks. These guidelines were put in place to ensure the stability, integrity, and diversity of the banking sector in India.
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In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?a)Initial paid-up capital should be 200 crore rupeesb)Share of promoters in paid-up capital should not be less than 40%c)Big corporate houses are not allowed to promote any bankd)All the aboveCorrect answer is option 'D'. Can you explain this answer?
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In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?a)Initial paid-up capital should be 200 crore rupeesb)Share of promoters in paid-up capital should not be less than 40%c)Big corporate houses are not allowed to promote any bankd)All the aboveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?a)Initial paid-up capital should be 200 crore rupeesb)Share of promoters in paid-up capital should not be less than 40%c)Big corporate houses are not allowed to promote any bankd)All the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?a)Initial paid-up capital should be 200 crore rupeesb)Share of promoters in paid-up capital should not be less than 40%c)Big corporate houses are not allowed to promote any bankd)All the aboveCorrect answer is option 'D'. Can you explain this answer?.
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