Q. Consider the following statements regarding the Regional Rural Banks (Amendment) Act, 2015:

1. It raises the authorised capital for Regional Rural Banks (RRBs) to Rs 2,000 crore.
2. It mandates that the combined shareholding of the central government and the sponsor bank must not be less than 51%.

Which of the above statements is/are correct?
Answer: Both 1 and 2
Notes: The Regional Rural Banks (Amendment) Act, 2015 increases the authorised capital of RRBs to Rs 2,000 crore and stipulates that it cannot fall below Rs 1 crore. Further, the Act requires that the combined shareholding of the central government and sponsor bank remains at least 51% to retain effective public control. Both statements are thus correct.