Question

Which of the following statements about Local Area Banks (LABs) is correct?

• A. LABs are scheduled banks under RBI and can operate in any number of districts.
• B. LABs are non scheduled banks, restricted to a maximum of 3 contiguous districts at the outset.
• C. LABs are not required to maintain any minimum capital requirement under RBI norms.
• D. LABs are only allowed to operate in urban metropolitan areas.

Answer 1

Answer:

B. LABs are non scheduled banks, restricted to a maximum of 3 contiguous districts at the outset.

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