41. Local Area Banks are allowed to issue commercial papers to meet short-term funding requirements.
a) True.
b) False.
Answer: b) False.
42. Local Area Banks are required to maintain a minimum percentage of priority sector lending as per RBI guidelines.
a) 15%.
b) 20%.
c) 25%.
d) 40%.
Answer: c) 25%.
43. Local Area Banks are exempted from payment of taxes on income earned from lending operations in their local area.
a) True.
b) False.
Answer: b) False.
44. Local Area Banks can accept foreign currency deposits from Non-Resident Indians (NRIs).
a) True.
b) False.
Answer: b) False.
45. Local Area Banks are required to disclose their financial statements and annual reports to the general public.
a) True.
b) False.
Answer: a) True.
