Banking Institutions and History

ICICI Bank was the first private sector bank to issue equity shares to retail investors at a discount. This move was aimed at increasing retail participation in the bank's equity.

Regional Rural Banks (RRBs) were established in 1975 based on the recommendations of the M. Narasimham Working Group, which aimed to provide credit to rural areas.

The authorized capital of a Regional Rural Bank is set at Rs. 5 crore, providing the necessary foundation for its operations.

Every Regional Rural Bank is sponsored by a Scheduled Commercial Bank, which provides managerial and financial support to the RRB.

RRBs are categorized as public sector banks because the majority of their equity is held by the government and public sector institutions.

South Malabar Gramin Bank was the first Regional Rural Bank in India to implement full computerization of its operations.

The equity of an RRB is contributed by the Central Government, the State Government, and the Sponsor Bank in the ratio of 50:15:35, respectively.

The A. M. Khusro Committee recommended the merger of RRBs with their respective sponsor banks to improve their viability and operational efficiency.

North Malabar Gramin Bank was the first RRB to be authorized by the Reserve Bank of India to open and maintain Non-Resident Indian (NRI) accounts.

Statement 1 is incorrect because RRBs are not exempted from maintaining SLR (Statutory Liquidity Ratio) and CRR (Cash Reserve Ratio); they are required to maintain these like other scheduled commercial banks.

The Kelkar Committee recommended a moratorium on the establishment of new RRBs starting from April 1987 to focus on the consolidation and improvement of existing ones.

State Bank of Indore was a subsidiary of State Bank of India and thus classified under the public sector. The other banks mentioned were either private sector or the text is garbled.

Public sector banks in India include nationalized banks, the State Bank of India, and its subsidiaries. The Reserve Bank of India is the central bank and regulator, not a commercial public sector bank.

All three banks listed (Bank of Credit and Commerce International, Development Credit Bank, and UCI Bank) are not classified under public sector - they are either private sector or foreign banks.