BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Rs 1 crore
|
|
|
Rs 2 crore
|
|
|
Rs 5 crore
|
|
|
Rs 10 crore
|
Detailed explanation-1: -Local Area Banks have jurisdiction over a maximum of three contiguous districts, and their basic function is to mobilise funds in rural and semi-urban areas. The minimum start-up capital of a LAB was fixed at Rs. 5 crore and the promoters were asked to bring entire minimum share capital up-front.
Detailed explanation-2: -The minimum net worth of such small finance banks shall be Rs. 100 crore from the date of commencement of business.
Detailed explanation-3: -Initial Capital Requirement for Small Finance Banks is ₹200 Crore.
Detailed explanation-4: -In another circular, the RBI has listed out the net worth and capital adequacy requirements of the UCBs. Tier 1 UCBs operating in a single district should have minimum net worth of Rs 2 crore. For all other UCBs (in Tier 1, 2 and 3) tiers), the minimum net worth should be Rs 5 crore.