BANKING AFFAIRS

Detailed explanation-1: -Conclusion. In conclusion, it can be said that the government of India set up the local area banks to mobilise rural savings. Currently, there are four LABs (Local area banks) functioning as financial institutions, and their activities are governed as per the regulations of RBI.

Detailed explanation-2: -In the LAB case, the Banking Regulation Act, 1949, is applicable. They bridge the gap between credit requirements and availability in rural and semi-urban areas. The four types of Local area banks are Coastal Capital, Krishna Bhima Samruddhi, and Subhadra Local Area Bank Limited, Kolhapur.

Detailed explanation-3: -Q. How many Local Area banks exist in India at present (January, 2022)? Notes: There are only two active Local Area Banks (LAB) in India, which exist at present. They are: Coastal Local Area Bank Ltd and Krishna Bhima Samruddhi Local Area Bank Ltd.

Detailed explanation-4: -With the merger of banks in 2019, there are a total of 12 public sector banks and 21 private sector banks in India.

Detailed explanation-5: -There are only four Local Area Banks (LAB) in India, which exist in the form of Non-scheduled banks.