Here are some MCQs on Local Area Banks
1. What is a Local Area Bank?
a) A bank that operates exclusively within a specific geographical area.
b) A bank that serves only local businesses.
c) A bank that is owned and operated by the local government.
d) A bank that focuses on providing loans for local infrastructure projects.
2. Local Area Banks in India are licensed under which act?
a) Banking Regulation Act, 1949.
b) Local Area Bank Act, 1996.
c) Companies Act, 1956.
d) Reserve Bank of India Act, 1934.
3. What is the main objective of Local Area Banks?
a) To promote financial inclusion in rural areas.
b) To provide specialized banking services to local businesses.
c) To support local agricultural development.
d) To encourage savings and provide credit to individuals in a specific region.
4. Local Area Banks in India are required to have a minimum capital of:
a) Rs. 100 crore.
b) Rs. 200 crore.
c) Rs. 300 crore.
d) Rs. 500 crore.
5. Local Area Banks in India cannot have branches outside the local area they operate in.
a) True.
b) False.
