Which of the following statements is/are true about the shareholding in the Regional Rural Bank (RRB)?begin{enumerate}item Central govt. holds 50% stake.item RBI holds 50% stake.item State government holds 15% stake.item Sponsored bank holds 35% stake.end{enumerate}

BANKING GENERAL KNOWLEDGE

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

Which of the following statements is/are true about the shareholding in the Regional Rural Bank (RRB)?

A	Only 1 & 2
B	Only 2, 3 & 4
C	Only 1, 3 & 4
D	Only 1 & 4

Explanation:

Detailed explanation-1: -Shareholding: The Act mandates that of the capital issued by a RRB, 50% shall be held by the central government, 15% by the concerned state government and 35% by the sponsor bank.

Detailed explanation-2: -The first Regional Rural Bank was set up in 1975 by the name Prathama Grameen Bank. Central Government-50% share. State Government-15% share. The Sponsor Bank-35% share.

Detailed explanation-3: -The RRBs were owned by the central government, state government, and the sponsoring bank with 50%, 15%, and 35% shareholding respectively.

Detailed explanation-4: -The Regional Rural Bank Amendment Act, 2015 enabled these banks to access the capital market outside their current shareholders-the central government, sponsor banks and the respective state governments-which hold shares in each RRB in the ratio of 50:35:15.

There is 1 question to complete.