Test: Banking in India - 1 - Banking Exams MCQ

Banks that are included in the second schedule of the RBI Act, 1934 are considered to be scheduled Banks.

Banks that are classified in Schedule II of the Reserve Bank of India Act, 1934 are referred to as scheduled banks. To qualify as a scheduled bank, the bank's paid-up capital and raised funds must total at least Rs. 5 lakhs. These banks are eligible for low-interest RBI loans.

The authorized capital of RRBs – Rs. 5 crores

The Cooperative Credit Societies Act of 1904 was amended in 1912 to allow non-credit societies to be formed. The Maclagan Committee was formed in 1915 to assess their performance and provide recommendations for improvement.

The Local Area Bank Scheme was introduced in August 1996. The minimum start-up capital of a LAB was fixed at Rs.5 crores.

Central Bank of India is the only Public sector bank is in this list

• Accepting public deposits
• Providing a demand withdrawal facility
• Lending facility
• Money transfers
• Distribution of draughts
• Make lockers available to clients.
• Managing foreign exchange

The Narasimham II Commission has been tasked with reviewing the progress of the implementation of banking reforms since 1992 to further strengthen Indian financial institutions.

Liquidity is a measure of the cash and other assets banks have available to quickly pay bills and meet short-term business and financial obligations. Liquidity is the basis of the well-being of financial institutions, especially banks. It guarantees the smooth functioning of financial markets and thus determines the growth and development of banks.

Uttar Pradesh has the highest number at 36 branches of RRB, followed by Madhya Pradesh at 19 RRB and Bihar at 16 RRB. Goa and Sikkim do not have RRB.