The correct answer is option 'A', which states that the Reserve Bank of India (RBI) lays down norms for banks.

Explanation:
The Reserve Bank of India (RBI) is the central bank of the country and is responsible for regulating and supervising the banking system. As the apex banking institution, the RBI formulates and enforces various norms and guidelines for all banks operating in India, including public sector banks like State Bank of India (SBI) and private sector banks like Syndicate Bank.

The RBI plays a crucial role in maintaining the stability and integrity of the banking system and ensures that banks follow certain norms and standards to safeguard the interests of depositors and maintain financial stability. Some of the key norms laid down by RBI for banks include:

1. Capital Adequacy Norms: The RBI mandates that banks maintain a minimum level of capital to absorb any losses and ensure their solvency. This helps in protecting depositors' money and maintaining the stability of the banking system.

2. Asset Classification and Provisioning Norms: The RBI lays down guidelines for banks to classify their assets into different categories based on the level of risk associated with them. This helps in assessing the quality of a bank's assets and ensures that appropriate provisions are made to cover potential losses.

3. Prudential Norms: The RBI sets prudential norms for various aspects of banking operations, such as income recognition, asset classification, and provisioning, to ensure that banks maintain transparency and adhere to best practices.

4. Anti-Money Laundering (AML) and Know Your Customer (KYC) Norms: The RBI mandates that banks have robust AML and KYC procedures in place to prevent money laundering, terrorist financing, and other illicit activities. This helps in maintaining the integrity of the banking system and safeguarding against financial crimes.

5. Corporate Governance and Risk Management: The RBI provides guidelines on corporate governance practices and risk management frameworks that banks need to adopt. This ensures effective oversight, accountability, and risk mitigation within the banking sector.

By laying down these norms and regulations, the RBI aims to maintain the stability, efficiency, and transparency of the banking system. It ensures that banks operate within a framework that promotes financial soundness, protects customer interests, and contributes to the overall economic development of the country.