RBI has released its guidelines for entry of new banks in the private sectorin the month of February 201 3. One of the norms is at least a prescribed percentage of branches of new bank should be set in unbanked rural centres with a population of upto 9, 999 people. What is the percentage of such branches prescribed in the norms?

BANKING GENERAL KNOWLEDGE

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

A	10%
B	15%
C	18%
D	0.25

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 final guidelines for “Licensing of New Banks in the Private Sector” were issued in February 2013. 3.19 Major provisions: These banks were to be mandatorily set up through a wholly-owned Non-Operative Financial Holding Company (NOFHC). There was no bar on large corporate/industrial houses to be promoters.

Detailed explanation-3: -The minimum paid-up equity capital for small finance banks shall be Rs. 100 crore.

Detailed explanation-4: -RBI will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force”.

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