31. Local Area Banks are required to maintain a certain percentage of their net demand and time liabilities (NDTL) as Statutory Liquidity Ratio (SLR) with the RBI.
a) True.
b) False.
Answer: b) False.
32. The loans provided by Local Area Banks are subject to regulation regarding interest rates and repayment terms.
a) True.
b) False.
Answer: a) True.
33. Local Area Banks are allowed to undertake insurance business as a subsidiary activity.
a) True.
b) False.
Answer: b) False.
34. Local Area Banks are allowed to open branches and ATMs outside their local area with prior permission from the RBI.
a) True.
b) False.
Answer: b) False.
35. Local Area Banks contribute to the overall development of the local economy by focusing on the specific needs of the region.
a) True.
b) False.
Answer: a) True.
