BANKING AFFAIRS

Detailed explanation-1: -Over the last two decades, the Reserve Bank of India (RBI) licensed twelve banks in the private sector. This happened in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

Detailed explanation-2: -In the first round, the central bank issued licences to 10 private sector banks in 1993-94, shortly after a round of economic liberalization under the P.V. Narasimha Rao government.

Detailed explanation-3: -Over the last two decades, the Reserve Bank of India (RBI) has issued banking licences under different categories.

Detailed explanation-4: -RBI regulates the banking functions of co-operative banks under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934. These banks are also required to comply with instructions/ guidelines etc.