Banking Awareness Set 63 (Local Area Bank)

Banking Awareness on Local Area Bank

Important Banking Awareness Questions on Local Area Bank for SBI PO, IBPS PO, NIACL, LIC, RBI, RRB PO Clerk, IPPB and other competitive exams. Banking Awareness Local Area Bank

  1. What is the minimum startup capital for Local Area Bank?
    A) Rs 5 crore
    B) Rs 10 crore
    C) Rs 100 crore
    D) Rs 500 crore
    View Answer
    Option A
  2. In a Local Area Bank the number of NRI promoters cannot exceed ____ of the total number of promoters.
    A) 5%
    B) 10%
    C) 15%
    D) 20%
    View Answer
    Option D
  3. In a Local Area Bank, Individual shareholder voting rights were to be restricted to a ceiling of ____ of the total voting rights
    A) 5%
    B) 10%
    C) 15%
    D) 20%
    View Answer
    Option B
  4. The area of operation of a Local Area Bank is restricted to a maximum of ______ geographically contiguous districts.
    A) two
    B) three
    C) four
    D) Five
    View Answer
    Option B
  5. For a Local Area Bank, at least ____ of the new bank credit must be lend to Priority Sector.
    A) 20%
    B) 25%
    C) 30%
    D) 40%
    View Answer
    Option D
  6. In regard to liquidity requirements and interest rates, Local Area Banks are governed by which of the following act?
    A) Reserve Bank of India Act, 1934
    B) Banking Regulation Act, 1949
    C) Companies Act, 1956
    D) Regional Rural Banks Act, 1976
    View Answer
    Option D
    Explanation
    : The bank would be governed by the provisions of the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949 and other relevant statutes. However, in regard to liquidity requirements and interest rates, such banks would be governed by the provisions applicable to the Regional Rural Banks (RRBs) established under the Regional Rural Banks Act, 1976.
  7. The regulatory responsibility over the Local Area Banks vests with ___________ of the RBI.
    A) Rural Planning and Credit Department
    B) Department of Banking Operations and Development
    C) Department of Non-Banking Companies
    D) Financial Inclusion and Development Department
    View Answer
    Option A
    Explanation
    : The regulatory responsibility over the LABs vests with Rural Planning and Credit Department (RPCD) of the RBI.
  8. Supervision over LABs lies with the __________ of the RBI.
    A) Department of Banking Regulation
    B) Department of Economic and Policy Research
    C) Department of Banking Supervision
    D) Department of Cooperative Bank Supervision
    View Answer
    Option C
    Explanation
    : Supervision over LABs lies with the Department of Banking Supervision (DBS).
  9. The NRI contributions to the equity of the Local Area Bank cannot exceed ______ of the paid-up capital.
    A) 20%
    B) 30%
    C) 40%
    D) 50%
    View Answer
    Option C
  10. Local Area Banks have to maintain capital adequacy ratio (CAR) of _____ percent.
    A) 5%
    B) 8%
    C) 10%
    D) 12%
    View Answer
    Option B
    Explanation
    : The bank would have to maintain capital adequacy at 8% of risk weighted assets and comply with the norms of income recognition, asset classification and provisioning since inception.

 

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23 Thoughts to “Banking Awareness Set 63 (Local Area Bank)”

  1. Inaayat

    thank you sir

      1. DEEP..!!

        bit anxious for sbi n u?

        1. yo

          same here 🙁 gs and descriptive ready yours?

          1. DEEP..!!

            Worried about reasoning,other sections will be manageable.
            See how could I get rid of this section to fetch appreciable marks.

          2. yo

            Yeah
            Let’s see how it comes
            All the best to us mate☺

          3. yo

            hey , how was your exam?

  2. achiever~Dreamer

    nice Thanks AZ ..

  3. sachin shukla@Target SBI Mains

    ty

    1. Ak$hita $inghal

      Hwz prep going?

      1. IBPS RRB PO-2018

        nadhiya and urs???

        1. Ak$hita $inghal

          Fine dear.. New Di kha se kr rhe aap?

          1. IBPS RRB PO-2018

            kaha se yar sb yahi st se aur Textbook practice set se..u k pas koi special source h kya??

          2. Ak$hita $inghal

            Ni.. Mera b yahi quiz ND all.

          3. Ak$hita $inghal

            Ob De rhe?

          4. IBPS RRB PO-2018

            haaa

          5. Ak$hita $inghal

            I asked u smthng ob ko leke..

          6. Ak$hita $inghal

            Muje tele krdo.. Ob id ND pass 🙂

  4. Destiny : ultimate

    thanku sir 🙂

  5. PHENOMENAL

    thanx very nyc questions

  6. Update version

    ty sir

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