For a bank to be included in the RBI Act, 1934:

  1. It requires paid up capital and reserves of at least Rs. 0.5 million (50 Lakh)
  2. It should satisfy the CRAR norms
  3. It should be not opened by a business conglomerate

Select the correct option from codes given below:

Answer: [D] 1, 2 & 3

Scheduled banks are listed under second schedule of RBI act 1934, whereas non-scheduled banks are not listed under that schedule. Following are the characteristics of scheduled banks in India:

  • These banks need to have paid up capital and reserves of at least Rs. 0.5 million (50 Lakh)
  • They should satisfy the CRAR norms and other prudential norms of RBI
  • They should satisfy the RBI that their business is not being conducted in a manner prejudicial to the interests of its depositors
  • In our country all banks are scheduled banks except four Local Area Banks and some Non-scheduled Urban Cooperative Banks

 

This question is a part of GKToday's Integrated IAS General Studies Module