The issued/paid-up capital of a Regional Rural Bank (RRB) should be

BANKING GENERAL KNOWLEDGE

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

A	Rs. 60 lakh
B	minimum Rs. 25 lakh and maximum Rs. 100 lakh
C	Rs. 80 lakh
D	Rs. 90 lakh

Explanation:

Detailed explanation-1: -Regional rural banks (RRBs), which play a crucial role in credit disbursement in remote areas, will be eligible to list on stock exchanges and raise funds if they have net worth of at least Rs 300 crore over the previous three years and if they fulfil certain other criteria.

Detailed explanation-2: -Authorised capital: The Act provides for the authorised capital of each RRB to be Rs five crore. It does not permit the authorised capital to be reduced below Rs 25 lakh.

Detailed explanation-3: -Rural banks with six to 10 branches are required to have a minimum capital of P120 million, while those with more than 10 branches should have capital of at least P200 million.

Detailed explanation-4: -Compliance with minimum prescribed CRAR requirement as applicable from time to time. Net worth of ₹50 crore or more as on March 31 of the previous financial year.

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