Multiple choice

Which of the following statements is not correct in respect of Local Area Banks?

  1. It is registered under Indian Companies Act

  2. It is not included in second schedule of Reserve Bank of India

  3. Provisions that are applicable to RRBs are also applicable to Local Area Bank

  4. It is established wholly in private sector and it has no stake of Govt. in the capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Local Area Banks (LABs) are established in the private sector and are included in the second schedule of the Reserve Bank of India. The claim that provisions applicable to Regional Rural Banks (RRBs) apply to Local Area Banks is incorrect, as they are governed by different regulatory frameworks.

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