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In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?
  • a)
    Intial paid-up capital should be 200 crore rupees
  • b)
    Share of the promoters in paid-uo 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...
Explanation:
The correct answer is option 'D' - all of the above statements are true. The Reserve Bank of India (RBI) issued a set of guidelines for the private sector in 2001. Let's break down each statement and explain it in detail.

Statement a) Initial paid-up capital should be 200 crore rupees:
According to the guidelines issued by RBI, the initial paid-up capital for setting up a private sector bank should be a minimum of 200 crore rupees. Paid-up capital refers to the amount of money that shareholders have invested in a company. This requirement ensures that the bank has adequate financial resources to carry out its operations and meet regulatory requirements.

Statement b) Share of the promoters in paid-up capital should not be less than 40%:
Another guideline mentioned by RBI is that the share of the promoters (the individuals or entities promoting the bank) in the paid-up capital should not be less than 40%. This requirement ensures that the promoters have a significant stake in the bank's ownership, which aligns their interests with the long-term growth and stability of the bank.

Statement c) Big corporate houses are not allowed to promote any bank:
The third guideline stated in the question is that big corporate houses are not allowed to promote any bank. This means that large companies or corporate groups cannot be the promoters of a bank. This guideline aims to prevent concentration of economic power and potential conflicts of interest that may arise when corporate entities have control over banking institutions.

Conclusion:
To summarize, the RBI issued guidelines for the private sector in 2001, which included requirements such as a minimum initial paid-up capital of 200 crore rupees, a minimum promoter share of 40% in the paid-up capital, and a prohibition on big corporate houses promoting banks. Therefore, option 'D' - all of the above statements are true.
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In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?a)Intial paid-up capital should be 200 crore rupeesb)Share of the promoters in paid-uo 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)Intial paid-up capital should be 200 crore rupeesb)Share of the promoters in paid-uo 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)Intial paid-up capital should be 200 crore rupeesb)Share of the promoters in paid-uo 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)Intial paid-up capital should be 200 crore rupeesb)Share of the promoters in paid-uo 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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