On-tap bank licence guidelines

Q.  Which of the following is/are true about On-tap bank licence?

1) The bank should have a minimum capital of Rs.500 crore and should list on the stock exchanges within six years of commencing operations.
2) The bank should maintain a capital adequacy ratio of 13 per cent in the first three years.
- Published on 03 Aug 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Both 1 and 2
 
  • The bank shall open at least 25 per cent of its branches in unbanked, rural centres.
  • The bank should maintain a capital adequacy ratio of 13 per cent in the first three years of operation as compared to 9 per cent in existing banks.
  • NBFC, which is a part of the group where the non-financial business of the group accounts for 40 per cent or more in terms of total assets/gross income, is not eligible.

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    Discussion

  • geeta   -Posted on 03 Aug 16
    wrong answer

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