BPSC CCE Prelims
Banking Reforms Previous Year Questions (PYQs)
Practice solved questions for Banking Reforms with detailed step-by-step solutions, key insights, and trend analysis for BPSC CCE PRELIMS.
Solved Previous Year Questions
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According to the Reserve Bank of India, what is one of the eligibility criteria for a Small Finance Bank (SFB) to transition into a Universal Bank?
Detailed Explanation:
The Reserve Bank of India (RBI) permits Small Finance Banks (SFBs) to transition into Universal Banks if they meet specific eligibility criteria.
Key requirement: a minimum net worth of ₹1,000 crore as paid-up voting equity capital, completion of at least five years of operations, and adherence to regulatory compliance and sound governance norms.
Bhandari Committee is related to
Detailed Explanation:
The Bhandari Committee (1994) was constituted to examine the functioning and recommend the restructuring of Regional Rural Banks (RRBs). It identified 49 weak RRBs requiring comprehensive restructuring and suggested granting greater autonomy to RRB boards in business and staffing decisions.
The committee had no mandate on taxation (direct/indirect) or general agricultural credit—its focus was exclusively on strengthening the RRB framework.
Therefore, regional rural banks' restructuring is the correct focus, making Option 3 the correct answer.
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