According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of
₹ 500 crores
In February 2013 the Reserve Bank of India issued Guidelines for Licensing of New Banks in the Private Sector, under which entities in the private sector, public sector entities and NBFCs could promote a bank.
The initial minimum paid-up voting equity capital of a new bank was fixed at ₹ 500 crore. The bank had to be set up through a wholly owned Non-Operative Financial Holding Company (NOFHC), which had to hold at least 40% of the bank’s paid-up voting equity, locked in for five years.
Other conditions included listing within three years, foreign shareholding capped at 49% for the first five years, and opening at least 25% of branches in unbanked rural centres. Under these guidelines, in-principle licences went to IDFC and Bandhan in April 2014.
Hence, ₹ 500 crores.
Similar Questions
Match the items of List - I with List - II in terms of functions of a bank :
List - I List - II (Activities) (Functions) (a) Underwriting (i) Primary Functions (b) Transfer of funds (ii) Granting Advances (c) Overdraft (iii) Utility Functions (d) Recurring Deposits (iv) Agency Functions Codes :
(a) (b) (c) (d)
Interest earned by a depositor against a deposit with a commercial bank for custodial service :
Assertion (A) : Taking of deposits and granting of loans single out banks.
Reasoning (R) : Banks act as intermediaries when they mobilize savings from surplus units to shortage units in order to finance productive activities.
Codes :
The profitability of public-sector banks is low due to
(i) Over-cautions approach to lending
(ii) Reserve Bank Policies
(iii) High Overhead Costs
(iv) Social-sector lending
Identify the correct code :
Codes :
According to the FDI Policy of the Government of India (2012), the FDI in banks is limited to
Match the items of List – I with List – II :
List – I List – II a. RBI Nationalization i. 1964 b. Imperial Bank Nationalization ii. 1949 c. Nationalization of 14 Commercial Banks iii. 1955 d. Establishment of IDBI iv. 1969 Identify the correct combination :
Codes :
a b c d
Select the major principles which banks strive to incorporate in their working from the following :
(a) Profitability
(b) Labour welfare
(c) Social welfare
(d) Safety
(e) HRD
(f) Liquidity
Codes :
Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Imposition of price _______ below the equilibrium price leads to excess _______.
- Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Codes :
