Which of the following Statements is not correct regarding the ‘Banking Sector’ of India?
[B] Foreign Banks and Regional Rural Banks do not come under the category of Scheduled Commercial Banks.
[C] Banks have the freedom to regulate their own Savings Bank Deposit interest rates.
[D] Narsimham Committee is related to Banking Sector reforms.
Foreign Banks and Regional Rural Banks also come under the category of Scheduled Commercial Banks.
Now, the banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:
1.Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs 1 lakh,irrespective of the amount in the account within this limit.
2.For savings bank deposits over Rs 1 lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.