As per guidelines of Reserve Bank of India, a new private sector bank

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy, etc.
B	shall have to observe priority sector lending targets as applicable to other domestic banks
C	will be required to open rural and semiurban branches
D	All of these

Explanation:

Detailed explanation-1: -Minimum capital 200 crore, with a commitment to increase to Rs. 300 crore within three years. In order to meet with this requirement, all banks in private sector should have a net worth of Rs 300 crore at all times. Where the net worth declines to level below Rs 300 crore, it should be restored within reasonable time.

Detailed explanation-2: -The bank shall be required to maintain a minimum capital adequacy ratio of 13 per cent of its risk weighted assets (RWA) for a minimum period of 3 years after the commencement of its operations subject to any higher percentage as may be prescribed by RBI from time to time.

Detailed explanation-3: -New Private Sector Banks in India Development Credit Bank (DCB Bank Ltd) HDFC Bank. ICICI Bank. IndusInd Bank.

There is 1 question to complete.