Multiple choice

What is the pre-condition for a Regional Rural Bank for doing insurance business?

  1. Positive net worth.
  2. Net Profit in last three consecutive years.
  3. Level of gross NPAs below 10%.
  4. Recommendation of sponsor bank.

  1. 1

  2. 1 and 2

  3. 1, 2 and 3

  4. 1, 2, 3 and 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Regional Rural Banks (RRBs) must meet specific financial criteria to undertake insurance business. These include having a positive net worth, a net profit for the last three consecutive years, gross NPAs below 10%, and the recommendation of their sponsor bank.

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