Which among the following is NOT a must condition for a Scheduled Commercial Bank in India?
[A] It should be in the second schedule of RBI act 1934 [B] Its Paid Up Capital should be at least Rs. 1 Crore [C] It must deposit with RBI as per the CRR [D] It must have facilities of a clearing house
Correct Answer: B [Its Paid Up Capital should be at least Rs. 1 Crore]
The scheduled commercial banks are those banks which are included in the second schedule of RBI Act 1934 and which carry out the normal business of banking such as accepting deposits, giving out loans and other banking services. The major difference between Scheduled Commercial Banks and Scheduled Cooperative Banks is their holding pattern, since cooperatives are registered under the Cooperative Societies Act as cooperative credit institutions.
Minimum paid up capital to setup scheduled commercial bank is Rs. 5 lakhs