Regional Rural Banks (RRB's) provide the banking facilities in rural areas

with low cost structure and to uplift the weaker sections of the society
through the implementation of poverty alleviation programs.
RRB's established on 2nd October !"#.
$here are %2 number of Regional Rural Banks in &ndia.
'apital in all Regional Rural Banks is contributed by (ovt of &ndia) *ponsor
bank and state government in the ratio of #+ , -# , # respectively.
$he main purpose of RRB's is to mobili.e financial resources from rural / semi0
urban areas and grant loans and advances mostly to small and marginal farmers)
agricultural laborers and rural artisans.
RRB's perform various functions in following heads
1 2roviding banking facilities to rural and semi0urban areas.
'arrying out government operations like disbursement of wages of 3(4R5(6
workers) distribution of pensions etc.
1 2roviding 2ara0Banking facilities like locker facilities) debit and credit cards
. $he largest revenue in &ndia is obtained from 7777777777
(6) Railways
(B) 58cise 9uty
(') *ales $a8
(9) 9irect $a8es
6ns , (B)
2. $he ta8 levied by 'entral (overnment and collected by *tate (overnment
is 77777777
(6) *tamp 9uty
(B) 58cise 9uty
(') &ncome $a8
(9) (ift $a8
6ns , (6)
-. :hat is the ma;or share in revenue of *tate (overnments<
(6) *tamp 9uty
(B) 58cise 9uty
(') *ales $a8
(9) &ncome $a8
6ns , (')
=. $he ta8 levied by >ocal (overnments i.e. 3unicipal 'orporations and
municipalities is 777777777777
(6) &ncome $a8
(B) :ealth $a8
(') ?ouse $a8
(9) (ift $a8
6ns , (')
#. $he ta8 collected by the *tate (overnments and given to local bodies is
7777777777
(6) &ncome $a8
(B) :ealth $a8
(') ?ouse $a8
(9) 2rofessional $a8
6ns , (9)
@. $he period for 'all 3oney is 77777777
(6) + to #days
(B) to = 9ays
(') # to -+ 9ays
(9) One 3onth
6ns , (B)
". :ho regulates the money circulation in &ndia<
(6) *tate Bank of &ndia
(B) Reserve Bank of &ndia
(') 46B6R9
(9) 'ommercial Banks
6ns , (B)
%. :hich of the following is not an organi.ed sector in &ndia<
(6) 4ationalised Banks
(B) Regional Rural Banks
(') 'ooperative Banks
(9) 'hits and 3oney lenders
6ns , (9)
!. :ho will settle the grievances of customers of banks<
(6) Reserve Bank of &ndia
(B) *tate Bank of &ndia
(') >ocal 'ourts
(9) Ombuds 3en
6ns , (9)
+. :ho introduced the Banking Ombudsmen *cheme<
(6) RB&
(B) *B&
(') 3inistry of Ainance
(9 46B6R9
6ns , (6)
. :hen was O3BB9* 354 *'?535 first introduced<
(6) 4ovember 2++@
(B) October !%
(') Cune !!#
(9) Canuary !!%
6ns , (')
2. :hich was the firth Bank corporated by the &ndians< (%%)
(6) &mperial Bank of &ndia
(B) *tate Bank of &ndia
(') 6vadh 'ommercial Bank
(9) Reserve Bank of &ndia
6ns , (')
-. :hen was the 6vadh 'ommercial Bank established<
(6) %%
(B) %!=
(') %!%
(9) %!!
6ns , (6)
=. :hen was Reserve Bank of &ndia established<
(6) !2+
(B) !2#
(') !-#
(9) !=%
6ns , (')
#. :hen was Reserve Bank of &ndia 4ationalised<
(6) !="
(B) !=%
(') !=!
(9) !#+
6ns , (')
@. :hen was &ndian Banking 6ct come into force<
(6) !=%
(B) !=!
(') !#+
(9) !#
6ns , (B)
". &mperial Banks were amalgamated and changed as 777777777
(6) Reserve Bank of &ndia
(B) $ata Bank of &ndia
(') *ubsidiary Banks
(9) Bnion Bank of &ndia
6ns , (B)
%. :hen was &mperial Bank was 'hanged as *tate Bank of &ndia<
(6) Canuary st !-#
(B) Aeb 2@ !="
(') Culy st !##
(9) Culy st !#!
6ns , (')
!. ?ow many banks were first nationalised<
(6) +
(B) 2
(') =
(9) @
6ns , (')
2+. :hen was the second phase of nationalisation done<
(6) !th Culy !@!
(B) +th Culy !@%
(') @th 6ugust !%#
(9) #th 6pril) !%+
6ns , (9)
2. ?ow many banks were in second phase of nationalisation<
(6) =
(B) #
(') @
(9) "
6ns , (')
22. :ho will act as the banker to the (overnment of &ndia<
(6) *tate Bank of &ndia
(B) Reserve Bank of &ndia
(') 46B6R9
(9) 4ationalised Banks
6ns , (B)
2-. :here is the ?ead Duarter of Reserve Bank of &ndia<
(6) 3umbai
(B) 9elhi
(') Eolkotta
(9) 6hmedabad
6ns , (6)
2=. :ho was first governor of Reserve Bank of &ndia<
(6) E. 6. 4arasimham
(B) F. E. 3alhotra
(') 6. E. Fadia
(9) 6. B. 6 *mith
6ns , (9)
2#. :hen was >ead Bank *cheme introduced<
(6) !@"
(B) !@%
(') !@!
(9) !"=
6ns , (')
2@. :hat is 'RR<
a) 'ash Reserve Ratio
b) 'urrent Ratio Rate
c) Review Report
d) 'redit Rating Record
e) 4one of these
6ns, (a)
2". &nterest rates being charged by Banks in &ndia has shown GG0 trend
in recent year.
a) Aalling
b) Rising
c) *table
d) Folatile
e) 4one of these
6ns, (a)
2%. $he first development financial institution in &ndia that has got
merged with a bank is
a) &9B&
b) &'&'&
c) &9A'
d) B$&
e) 4one of these
6nd, (b)
2!. :hich of the following 4BA' converted itself into a commercial Bank<
a) $ata Ainance
b) Reliance 'apital $rust
c) Birla 3utual
d) Eotak 3ahindra
e) 4one of these
6ns, (d)
-+. :hich is the current revision H year of B'29'<
a) B'29' #++) !!-
b) B'O9' =++) !!-
c) B'29' -++) !"-
d) 4one of these
6ns, (a)
-. $he rate of which discounting the bills of first class banks is done by
RB& is called
a) Bank Rate
b) 2rime >ending Rate
c) >oan Rate
d) 9iscounting Rate
6ns, (a)
-2. Banking ombudsman has been constituted under which act<
a) Banking Regulation 6ct
b) RB& 6ct
c) *B& 6ct
d) 'O2R6
6ns, (a)
--. :hich finance company has been given banking licence by RB&
recently<
a) Eotak 3ahindra
b) 6shok >eyland H Ainance
c) $F* Ainance
d) $ata Ainance
e) 4one of these
6ns, (a)
-=. (ilt edged securities refer to
a) (overnment *ecurities
b) *ecurities issued by municipal corporations
c) *ecurities issued by first class companies
d) 4one of these
6ns, ( c )
-#. 6 unit of the Bnit $rust of &ndia is a
a) *hare
b) 9ebenture
c) 4egotiable &nstrument
d) 4one of these
6ns, (d)
-@. &ndian Banks 6ssociation (&B6) has a common net working system for
sharing the 6$3 facilities in 3umbai) which is known as
a) 6$3 4etwork
b) *hared 2ayment 4etwork *ystem
c) 'ash 4etwork
d) 4one of these
6ns, (b)
-". 6rbitrage is
a) Buying and selling in two markets simultaneously
b) 6 rate of interest
c) 6 Aee
d) 6rbitrage is a dispute
e) 4one of these
6ns, (a)
-%. 5 5 A ' denotes
a) 58change 5arners Aoreign 'urrency 6ccount
b) &mporterIs account with Bank
c) 6ccount maintained by a e8porter with RB&
d) 4one of these
6ns, (a)
-!. Aor which of the following currencies is the &ndian rupee Juoted
against ++ units of the foreign currency
a) 9eutsche 3ark
b) 2ound
c) Capanese Ken
d) B* 9ollars
6ns, ( c )
=+. 58change risk in case of foreign currency 4on Resident (Banks)
scheme (A'4B) is borne by
a) RB&
b) 9epositor
c) (ovt. of &ndia
d) 'oncerned Bank
e) 4one of these
6ns, (d)
=. 'onsortium 6dvances refer to
a) 'oncurrent borrowings
b) 3ultiple financing
c) Coint Ainancing by more than one bank
d) Ainancing of consignment business
e) 4one of these
6ns, ( c )
=2. 46B6R9 refinance for financing *elf ?elp (roups is to the e8tent of
a) 2#L
b) #+L
c) "#L
d) ++L
e) 4one of these
6ns, (d)
=-. $he term 6llonge refers to
a) $he sheets of paper used in writing a deed
e) $he stamps affi8ed on document
f) 6 sheet of paper attached to mortgage deed for the purpose of
witness
d) 6 sheet of papers attached to a negotiable instrument for the purpose
of making endorsement thereof when there is no space in the instrument
6ns, (d)
==. $he provision of 'onsumer 2rotection 6ct) !%@ are applicable to the
services rendered by the Banks
a) $o the customers of the bank only
b) $o the customers and the users of services irrespective of against
consideration or free services
c) $o the customers and any user of BankIs services against
consideration
d) 4one of these
6ns, ( c )
=#. 6s per section @ of the Banking Regulation 6ct) !=! a person can
be appointed as a director of how many banking companies
a) $hree
b) $wo
c) One
d) Aour
e) 4one of these
6ns, ( c )
=@. 4ayak 'ommittee Recommendations are applicable for sanction of
Aund Based :orking 'apital >imit upto
a) Rs.2# lacs
b) Rs. crores
c) Rs. 2 crores
d) Rs. # crores
e) 4one of these
6ns, (d)
=". Banking ombudsman means
a) 2erson appointed to recover dues from defaulting borrowers
b) 6 person to whom customer can approach for redress of his grievances
c) 6 person appointed to settle dispute between employees and
management
d) 6 person appointed by RB& to oversee the functioning of Aoreign Banks
e) 4one of these
6ns, (b)
=%. 4(O is the term associated with
a) *?(
b) 23RK
c) *55BK
d) 6gri. 6dvances
e) 4one of these
6ns, (a)
=!. Aull form of *>R
a) *tatutory >iJuidity Ratio
b) *tate >evel Recovery
c) *undry >everage Ratio
d) *tate >iJuidity Reserve
6ns, (a)
#+. '.R.6. in banking parlance stands for
a) 'redit Rating 6ssociation
b) 'redit Rating 6gency
c) 'redit Risk 6ssessment
d) 4one of these
6ns, ( c )
#. 5.2.*. in share market stands for
a) 5arning per share
b) 5lectronic 2ayment *ystem
c) 5mployee 2ension *croll
d) 5Juated 2ayment *ystem
e) 4one of these
6ns, (a)
#2. $he *ecuriti.ation and Reconstruction of Ainancial 6sset and enforce
of *ecurity &nterest 6ct came into force from
a) 2.+%.+2
b) 2.+@.+2
c) 2.+".+2
d) 2.2.+2
e) 4one of these
6ns, (b)
#-. $he powers of the Board of 9irectors to borrow from the bank are
mentioned in
a) 6rticle of 6ssociation
b) 3emorandum of 6ssociation
c) *pecial Resolution
d) 6 H B
e) 4one of these
6ns, (b)
#=. $he currency 5uro has been introduced w.e.f.
a) +.+.!!
b) +.+.2+++
c) +.+%.!!
d) +.+-.!!
e) 4one of these
6ns, (a)
##. :ho is authori.ed to permit premature closer of 22A 6/c
a) RB&
b) 3inistry of finance 9epartment of 5conomic affairs
c) 'hairman of concerning Bank
d) 4one of these
6ns, (b)
#@. :hat is B*(662<
a) Bnited *tates (enerally 6ccepted 6ccounting 2rinciples
b) Bnion *tate (enerous 6greement H 6ccounting 2rinciples
c) Bnited *tate (eneral 6llies H 6rmy 2ractices
d) Bnion *tate (enerous 6ccounts H 6ffairs and 2ractices
6ns, (a)
#". :hat is the average percentage of Banking transactions through nonbranch
route in private sector Banks
a) #+L
b) @+L
c) "+L
d) @#L
e) 4one of these
6ns, ( c )
#%. $he ' 9 Ratio of all schedule commercial Banks as on Cune 2++-
stood at
a) #L
b) #"L
c) #-L
d) @#L
e) 4one of these
6ns, (b)
#!. $he (ross 426 percentage of the following country is highest in 6sia
a) &ndia
b) 'hina
c) 3alaysia
d) &ndonesia
e) 4one of these
6ns, (b)
@+. $he gross amount of 426 of 2ublic *ector Banks as on -.+-.+- is
a) Rs.%2)+" crores
b) Rs. #=)+%@ crores
c) Rs. #%)+@" crores
d) Rs. =@)"-% crores
e) 4one of these
6ns, (b)
@. $o be categori.ed as a schedule Bank the minimum capital H reserve
reJuired is
a) Rs. + lacs
b) Rs. # lacs
c) Rs. 2+ lacs
d) Rs. " lacs
e) 4one of these
6ns, (b)
@2. Aor Business process re0engineering and &$ strategy which bank has
employed M(artnerI
a) BOB
b) *B&
c) 24B
d) BO3
e) 4one of these
6ns, (a)
@-. $he ob;ective of (overnment to appoint 4arsimhan 'ommittee is
a) $o strengthen the banking system
b) $o improve customer service
c) $o strengthen the credit portfolio
d) 4one of these
6ns, (a)
@=. :hich Bank has recently tied up with 6pollo ?ospital for financing
medical facilities
a) &'&'&
b) ?9A'
c) BOB
d) *B&
e) 4one of these
6ns, (d)
@#. $he full form of RB* is
a)Risk Based *upervision
b)Rating by *ystem
c)Role Based *upervision
d)Rating Bank *ecurity
6ns, (a)
@@. RB& has recently permitted which Bank to participate in the
(overnment *ecurities Repo 3arket
a)*B&
b)B$&
c)&'&'&
d)24B
6ns, (b)
@". $he fiscal deficit in 2++02++2 was GL of (92
a)#.L
b)#.-L
c)#.#L
d)#.=L
6ns, (d)
@%. Bnder the Banking Ombudsman scheme the value of claim should
not e8ceed
a)# lac
b)+ lac
c)# lac
d)2+ lac
6ns, (d)
@!. :hich Bank has introduced M2re0paid 'ardI first
a) OB'
b) BOB
c) 'orporation Bank
d) *B&
e) 4one of these
6ns, (a)
"+. $he minimum 'apital 6deJuacy Ratio currently fi8ed by RB& for Banks
is
a) 2L
b) +L
c) !L
d) L
e) 4one of these
6ns, ( c )
". :ho can fi8 the interest rates of 4R5 H A'4B deposits <
a) RB&
b) Banks) as per the directive of RB&
c) (ovt. of &ndia
d) &B6
6ns, (b)
"2. $he following is not a housing finance intermediary agency
a) ?9A'
b) ?B9'O
c) 4?B
d) *&'O3
6ns, (d)
"-. :ho is authorised to issue coin in &ndia
a) RB&
b) 3inistry of Ainance
c) *B&
d) 4one of these
6ns, (b)
"=. Bank can change interest rate without reference to its 2>R in the
following
a)?ousing loans
b) 4R5/ A'4B deposits
c) 2ersonal loans
d)5ducational loans
6ns, (b)
"#. $he ma8imum penal rate of interest that can be charged is restricted
to
a) 2 L
b) - L
c) 3a8imum spread announced over 2>R
d) # L
6ns, ( c )
"@. Banks can change rate of interest beyond spread announced by them
on advances granted to
a) Ailm companies
b) 'hit funds
c) 4BA' s
d) ?otels
6ns, ( c )
"". $o which category of customers are banks prohibited to sanction
loans against shares and debentures<
a) &nstitutions
b) 2*Bs
c) Banks
d) $rust and endowments
6ns, (d)
"%. :hat should be the method of valuation for advances against
shares/debentures / bonds<
a) Aace value
b) 3arket price
c) Book Falue
d) 6verage Falue
6ns, (b)
"!. :hich kind of bills should not be discounted by banks as per RB&
regulation<
a) 'ustoms duty
b) &nstallation charges
c) *ale of goods
d) 2urchase of books
6ns, (a)
%+. :hat action is taken if one of the customers tenders forged note<
a) ?e is sent to prison
b) 4ote is returned with remark) forged note
c) 4ote is impounded
d) 4ote is torn
6ns, ( c )
%. 6 contract of insurance is a contract of
a) &ndemnity
b) 2ledge
c) (uarantee
d) ?ypothecation
6ns, (a)
%2. &ndian 'ompanies have been allowed to invest upto B*N Gabroad
a) + million
b) # million
c) # million
d) 2+ million
6ns, (a)
%-. Restriction on number of partners in a firm is imposed by
a) &ndian 'ompanies 6ct !#@
b) &ndian 2artnership 6ct !-2
c) &ndian 'ontract 6ct %"2
d) 4one of these
6ns, (b)
%=. $he certificate to commence business is to be called for perusal and
returned for opening of an account of
a) 2ublic limited company
b) 'lub and association
c) 2rivate limited company
d) $rust
6ns, (a)
%#. $he certificate to commence business is to be called for perusal and
returned for opening of an account of
a) 2ublic limited company
b) 'lub and association
c) 2rivate limited company
d) $rust
6ns, ( c )
%@. :here is the headJuarters of *:&A$<
a) ?ong Eong
b) Brussels
c) >ondon
d) 3umbai
6ns, (b)
%". $he three banks recently have entered in a 3ega 6$3 sharing pact.
$hey are
a) *B&) &'&'&) H BOB
b) *B&) &'&'&) ?9A'
c) &'&'&) 6ndhra Bank) ?9A'
d) 6ndhra Bank) 'anara Bank) *B&
e) 4one of these
6ns, (b)
%%. $he Basic $ravelling Juota for going abroad is
a) B*9 +)+++
b) B*9 #)+++
c) B*9 2+)+++
d) B*9 #)+++/0
e) 4o ceiling
6ns, (a)
%!. :hich of these is not a credit rating agency<
a) 3oodyOIs
b) *tandard H 2oorIs
c) 2rice water house
d) &'R6
e) 4one of these
6ns, ( c )
!+. 2ari 2assu charge refers to a charge
a) Ranking in priority) regardless of Juantum of advances
b) 3erely notional in nature
c) Ranking eJually in priority in proportion to the lenderIs share of
advance
d) 4one of these
6ns, ( c )
!. :hat are the four categories as per Eapur 'ommittee
recommendations for loan applications under **& segment
a) upto 2 lacs) upto # lacs) upto 2# lacs) and above 2# lacs
b) upto + lacs) upto 2# lacs) upto #+ lacs and above #+ lacs
c) upto 2 lacs) upto crores) upto 2 crores) and above 2 crores
d) upto 2 crores) upto 2# crores) upto #+ crores and above #+ crores
e) 4one of these
6ns, (a)
!2. 4R5 deposit rates have been recently lowered to
a) >&BOR P .2#
b) >&BOR P .2+
c) >&BOR P .-+
d) >&BOR P .#+
6ns, (a)
!-. :ho is the (overnor of RB&<
a) Bimal Calan
b) K F Reddy
c) E C Bdeshi
d) Ranga Reddy
e) 4one of these
6ns, (b)
!=. :hich Bank is ranked "th &ndia 'ompany in the 5$ 2++- for listing as
per market capitali.ation<
a) &'&'&
b) ?9A'
c) *B&
d) BOB
6ns, ( c )
!#. Recently &'&'& issued winding up notice to the following financial
institutions
a) &9B&
b) 3*A'
c) &A'&
d) *&'O3
e) 4one of these
6ns, ( c )
!@. 6t what freJuency can Banks pay interest on *aving Bank 6ccount as
per RB& guidelines
a) 3onthly
b) Duarterly
c) ?alf Kearly
d) Kearly
6ns, ( c )
!". $he F*6$ communication network for banks and financial institutions
launched by RB& is known as
a) *:&A$
b) *B& 45$
c) B64E 45$
d) &4A&45$
6ns, (d)
!%. $he ceiling for BankIs daily borrowings in 'all 3oney should not
e8ceedGL of owned funds
a)++L
b)#+L
c)"#L
d)#+L
6ns, (a)
!!. 3ost modern banking systems are based on,
6) money of intrinsic value.
B) commodity money.
') ++ percent reserves.
9) fractional reserves.
6ns, (d)
++. :hich bank has become the first foreign bank to open a branch in
&sraelIs diamond e8change,
a) 6merican 58press Bank
b) 'itibank
c) *tandard 'hartered Bank
d) *tate Bank of &ndia
6ns, (d)
Reserve Bank of India
01. Central bank is a bank which acts as a banker to the government; has
monopoly of note issue and controls the entire banking system
0. RBI is the central bank in India
0!. RBI was established by an act of "arliament in 1#!$
0$. %he initial share capital for RBI was Rs. & crores
0&. RBI was nationali'ed under (transfer of public ownership) act 1#$*
0+. Its affairs are regulated by central board of directors
0,. It has four regional centres at -umbai. /olkatta. Chennai and 0elhi
0*. %he central office of the bank is at -umbai
0#. RBI is note issuing authority; banker. agent and financial adviser to the
government; custodian of cash reserves of banks; custodian of nation1s
reserves of foreign e2change; lender of the last resort; controller of credit
etc.
10. Currency notes other than one rupee notes are issued by RBI
11. RBI has credit control 3 regulation of cash reserves of commercial banks.
regulating the flow of credit. 4ualitative control and open market operations
1. 5andles all government transactions
1!. It is a banker1s bank
1$. It maintains the e2change rate for the Indian rupee; hold the country1s
reserves in foreign currencies and administration of the e2change
management regulations
6cheduled commercial banks
1&. %hey are included in the second schedule to the RBI act. 1#!$
1+. %hey can avail facilities from RBI 3 accommodation in the form of refinance
and loans and advances; remittance facility at concessive rates as also grant
of authori'ed dealer1s license to handle foreign e2change business.
1,. 5ave paid up capital and reserves 3 aggregate value of not less than Rs. &
lakhs.
1*. It can be a state cooperative bank or company registered under the
companies act
1#. 6cheduled commercial banks are 3 6tate Bank of India and associates.
nationali'ed banks. private sector banks. regional rural banks. urban
cooperative banks. state cooperative banks
0. 6cheduled Commercial Banks to maintain CRR up to ! percent of their
demand and time liabilities which can go upto a ma2imum of 1& percent
"ublic sector banks
1. 6tate Bank of India and associate banks
. 7ationali'ed banks 3 0
!. Banks were nationali'ed on 1#.0,.1#+# 8 fourteen banks
$. 7ationalised banks are9 Central Bank of India. Bank of India. Bank of
Baroda. :llahabad Bank. ;nion Bank of India. ;nited Commercial Bank.
Indian <verseas Bank. Indian Bank. Canara Bank. 6yndicate Bank. "un=ab
7ational Bank. ;nited Bank of India. 0ena Bank. Bank of -aharashtra.
:ndhra Bank. Corporation Bank. <riental Bank of Commerce. "un=ab and
6ind Bank and >i=aya Bank. (1#) and Industrial 0evelopment Bank of India
? 0
0evelopment banks
&. Industrial @inance Corporation of India is a development bank
+. Its operations are pro=ect finance. financial services and corporate advisory
services
,. Industrial Investment Bank of India was set up in 1#,1 for rehabilitation of
sick industrial companies.
*. Reconstituted as Industrial Reconstruction Bank of India in 1#*& under the
IRBI act. 1#*$
#. IRBI was incorporated in -arch. 1##, as Industrial Investment Bank of
India Aimited under the companies act. 1#&+
!0. 6I0BI was set up in 1##0 under an act of parliament (6I0BI) act 1#*# as a
wholly owned subsidiary of I0BI
!1. It is the principal financial institution for promoting and financing
development of industry in the small scale sector
!. 1$ banks were nationali'ed on 1#
th
Buly 1#+#
7ew "rivate sector banks
!!. 7ew private sector banks were formed as per RBI guidelines 1##!
!$. %hey were registered under companies act 1#&+
!&. %hey were included in second schedule to the RBI act. 1#!$
!+. %he minimum paid up capital of a new bank shall be Rs. 100 crores
!,. "riority sector lending norms should be adopted by these banks
!*. %he banks are governed by the provisions of the RBI act. 1#!$. the Banking
regulation act. 1#$# and other relevant statutes.
!#. %hey are not allowed to set up a subsidiary or mutual fund for at least three
years after their establishment
Regional Rural banks
$0. Regional Rural banks were established on .10.1#,&
$1. %o develop rural economy by providing credit and other facilities for the
purpose of development of agriculture. trade. commerce. industry and other
productive activities in rural areas. particularly to the small and marginal
farmers. agricultural laborers. artisans and small entrepreneurs
$. %hey are scheduled commercial banks
$!. Included in second schedule to RBI act. 1#!$
$$. %he gross 7":s of regional rural banks should not be more than 10 percent.
$&. %he banks should comply with the IR0: regulations for acting as a
corporate agent
$+. %he authori'ed capital of a regional rural bank is Rs. & crore and issuedCpaid
up capital minimum of Rs. & lakhs and ma2imum of Rs. 100 lakhs
$,. %he prescribed minimum level of share holding should be &1 percent for
sponsor institutions
Aocal :rea banks
$*. Aocal area banks were established on $.0*.1##+
$#. %hey were set up in the private sector to cater to credit needs of the local
people and to provide efficient and competitive financial intermediation
services in their area of operation
&0. %hey are re4uired to observe the priority sector lending target of $0 percent
of net bank credit. as applicable to other domestic banks. out of which &
percent shall be given to weaker sections
&1. %hey were registered as public limited companies as per Companies act.
1#&+.
&. %hey got licence as per Banking regulation act 1#$#
&!. Included in the second schedule to RBI act. 1#!$
&$. %hey have the minimum paid up capital of Rs. & crore
&&. "romoters1 contribution to be Rs crores.
&+. %hey can be promoted by individuals. corporate entities. trusts and societies
&,. %he area of operation of local area bank shall be a ma2imum of three
geographically contiguous districts.
&*. %o comply with the provisions of the Banking Regulation act. 1#$#. RBI act.
1#!$ and other statutes
&#. %hey are sub=ect to prudential norms. accounting policies and other policies
laid down by RBI
7on Banking @inance Companies
+0. 7B@Cs consist of eight categories 3 each one of them conducting a particular
business activity
+1. D4uipment leasing company undertakes e4uipment leasing or the financing
of such activity
+. 5ire purchase finance company is engaged in hire purchase transaction or
the financing of such transactions
+!. Aoan company provides finance by making loans or advances or otherwise
for any activity other than its own.
+$. %he main business of any investment company is the ac4uisition of
securities and trading in such securities to earn a profit
+&. -utual Benefit @inancial Company are the companies which are notified by
the Central Eovernment under section +0 : of the companies act 1#&+
++. -iscellaneous non banking company 3 the principal business of such
company is managing. conducting or supervising as a promoter. foreman or
agent of any transaction or arrangement by which the company enters into
an agreement
+,. 5ousing finance company 3 ac4uisition of construction of houses including
the ac4uisition or development of plots of land
+*. Residuary non banking company 3 receives deposits under any scheme or
arrangement by whatever name called in one lump sum or in installments
by way of contributions or subscriptions or by sale of units or certificates or
other instruments or in any manner.
+#. Dffective $.!.00!. 7B@Cs are not allowed to offer more than 11 percent per
annum interest on public deposit
,0. 7o official agency guarantees or undertakes the repayment of deposits or
interest
,1. 7B@C deposits are uninsured and not backed by security
,. %hey are not allowed to offer more than percent brokerage
,!. %hey are not allowed to offer gifts or incentives
,$. :ll depositors must be issued proper receipts for deposits
,&. 7B@Cs having track record of less than years is not eligible to accept
public deposits
,+. 7B@Cs seeking public deposit should be a profit making company
Aife Insurance corporation of India
,,. AIC was established in 1#&+ as wholly owned corporation of the
Eovernment of India
,*. AIC came into being from 1.#.1#&+
,#. %o spread life insurance across the country. particularly in the rural areas
and to the socially and economically backward classes.
*0. Besides insurance business. AIC in pursuance of Eovernment of India
guidelines invests a ma=or portion of its funds in central and state
government securities and other approved securities including special
deposits with Eovernment of India.
*1. D2tends assistance to develop infrastructure facilities like housing. rural
electrification. water supply and sewerage and provides financial assistance
to the corporate sector by way of term loans. underwriting off and direct
subscription to shares and debentures.
*. It also provides resource support to financial institutions through
subscription to their sharesCbonds and by way of term loans.
*!. ;%I 8 the largest mutual fund organi'ation in India was set up in 1#+$ by
an act of parliament.
*$. Dstablished to fulfill the ob=ectives of mobili'ing of retail savings. investing
them in the capital market and passing on the benefits accrued from the
ac4uisition. holding. management and disposal of securities to the small
investors.
*&. Eeneral Insurance Corporation of India was formed and registered on
Banuary. 1#,! under the insurance act 1#!* in accordance with the
provisions of the Eeneral Insurance Business (7ationali'ation) act. 1#,
*+. %he 7ew India :ssurance Company Aimited; %he ;nited India Insurance
Company Aimited. %he <riental Insurance Company Aimited and 7ational
Insurance Company Aimited are government owned insurance companies
doing general insurance business
*,. 7eed based insurance companies to meet the diverse and emerging needs of
various segments of society and provides financial assistance to industrial
pro=ects by way of term loans. short term loans and direct subscription to
sharesCdebentures of new and e2isting industrial enterprise.
7ational Bank for agriculture and Rural 0evelopment
**. 7:B:R0 was established in 1#* under an act of parliament
*#. It is the ape2 development bank for promotion and development bank for
promotion and development of agriculture. small scale industries. cottage
and village industries. handicrafts and other rural crafts and other allied
economic activities in rural areas
#0. It serves as an ape2 financing agency for the institutions providing
investment and production credit for promoting the various developmental
activities in rural areas
#1. %akes measures towards institution building for improving absorptive
capacity of the credit delivery system. including monitoring. formulation of
rehabilitation schemes. restricting of credit institutions. training of
personnel etc.
#. Coordinates the rural financing activities of all institutions engaged in
developmental work at the field level and maintains liaison with
Eovernment of India. state governments. RBI and other national level
institutions concerned with policy formulation
D2port and Import Bank of India
#!. D2port and Import Bank of India 8 DFI- bank was established in 1#*
#$. "ublic sector financial institution created by an act of "arliament vide 8 the
D2port and Import Bank of India act 1#*1.
#&. "rincipal financial institution for 3 financing. facilitating and promoting
India1s foreign trade
#+. %hey provide Indian e2porters with investment loans. e2port product
development loans. loans for e2port marketing. pre shipment credit.
suppliers credit for e2ports or pro=ects and advisory services.
#,. D4uity finance available for ac4uiring of setting up companies abroad for
manufacturing. marketing. trading etc.
#*. It offers buyers credit and lines of credit to foreign governments and banks
##. It has facilities to provide advance information and business advisory
services to Indian e2porters in respect of multilaterally funded pro=ects
overseas.
100. It offers advisory and information services to e2porters and
sponsors