BULLET POINTS - 004 New Private sector banks 01. New private sector banks were formed as per RBI guidelines 1993 02. They were registered under companies act 1956 03. They were included in second schedule to the RBI act, 1934 04. The minimum paid up capital of a new bank shall be Rs. 100 crores 05. Priority sector lending norms should be adopted by these banks 06. The banks are governed by the provisions of the RBI act, 1934, the Banking regulation act, 1949 and other relevant statutes. 07. They are not allowed to set up a subsidiary or mutual fund for at least three years after their establishment Regional Rural banks 08. Regional Rural banks were established on 2.10.1975 09. To develop rural economy by providing credit and other facilities for the purpose of development of agriculture, trade, commerce, industry and other productive activities in rural areas, particularly to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs 10. They are scheduled commercial banks 11. Included in second schedule to RBI act, 1934 12. The gross NPAs of regional rural banks should not be more than 10 percent. 13. The banks should comply with the IRDA regulations for acting as a corporate agent 14. The authorized capital of a regional rural bank is Rs. 5 crore and issued/paid up capital minimum of Rs. 25 lakhs and maximum of Rs. 100 lakhs 15. The prescribed minimum level of share holding should be 51 percent for sponsor institutions
Posted on: Sat, 07 Sep 2013 07:26:09 +0000
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