BANKING AFFAIRS

Detailed explanation-1: -Banks with a reserve capital of less than 5 lakh rupees qualify as non-scheduled banks. Unlike scheduled banks, they are not entitled to borrow from the RBI for normal banking purposes, except, in an emergency or abnormal circumstances.

Detailed explanation-2: -The aggregate amount should not exceed Rs 10 lakh. The initial minimum paid-up capital for a new private sector bank is Rs. 200 crore.

Detailed explanation-3: -What is the minimum paid up capital a bank must have to be eligible for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934? Explanation: Banks having paid up capital of at least Rs 5 lakh are eligible for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934.

Detailed explanation-4: -Scheduled banks is a banking corporation whose minimum paid up capital is Rs. 5 lakhs and does not harm the interest of the depositors. Non-scheduled banks are the banks which do not comply with the rules specified by the Reserve Bank of India, or say the banks which do not come under the category of scheduled banks.