Banking GK Notes – Development, Private Sector & Regional Rural Banks –IBPS PO, Clerk, RRB Officer Scale & Office Assistant {Chap-03}

Banking GK Notes – Development Bank GK Notes, Private Sector Bank Notes for IBPS exam & Regional Rural Banks for SBI & IBPS Exam – Important for IBPS Clerk, PO and SBI Clerk & PO examination
Development banks
·         Industrial Finance Corporation of India is a development bank
·          Its operations are project finance, financial services and corporate advisory services
·          Industrial Investment Bank of India was set up in 1971 for rehabilitation of sick industrial companies.
·          Reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI act, 1984
·          IRBI was incorporated in March, 1997 as Industrial Investment Bank of India Limited under the companies act, 1956
·         SIDBI was set up in 1990 under an act of parliament (SIDBI) act 1989 as a wholly owned subsidiary of IDBI
·          It is the principal financial institution for promoting and financing development of industry in the small scale sector
·         14 banks were nationalized on 19th July 1969
New Private sector banks
·         New private sector banks were formed as per RBI guidelines 1993
·         They were registered under companies act 1956
·         They were included in second schedule to the RBI act, 1934
·         The minimum paid up capital of a new bank shall be Rs. 100 crores
·         Priority sector lending norms should be adopted by these banks
·         The banks are governed by the provisions of the RBI act, 1934, the Banking regulation act, 1949 and other relevant statutes.
·         They are not allowed to set up a subsidiary or mutual fund for at least three years after their establishment

Regional Rural banks
·          Regional Rural banks were established on 2.10.1975
·          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
·          They are scheduled commercial banks
·         Included in second schedule to RBI act, 1934
·          The gross NPAs of regional rural banks should not be more than 10 percent.
·         The banks should comply with the IRDA regulations for acting as a corporate agent
·         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
·          The prescribed minimum level of share holding should be 51 percent for sponsor institutions

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