Q. Consider the following statements regarding Regional Rural Banks (RRBs) in India:

1. The area of operation of RRBs is limited to notified few districts in a State.
2. The combined shareholding of the central government and the sponsor bank cannot be less than 51% in case of RRB.

Which of the above statements is/are correct?
Answer: Both 1 & 2
Notes: Statement 1 is correct as RRBs operate within limited notified districts of a state. Statement 2 is also correct; as per the Regional Rural Banks Act, after amendment, the central government plus sponsor bank together must hold at least 51% shareholding in RRBs. Both statements accurately describe legal provisions regarding RRBs in India.