Advertisements
Advertisements
Question
Write a short note on Local Area Banks, Give two examples.
Advertisements
Solution
The local Area Bank (LAB) scheme was introduced by the RBI in August 1996. LABs are small private sector banks established in rural and semi-urban areas. Each bank serves two or three adjoining districts only. Their main objective is to mobilize rural savings (accept deposits) and invest them in the same areas.
Examples:
- Coastal Local Area Bank, Vijayawada, Andhra Pradesh.
- Subhadra Local Area Bank Limited, Kolhapur, Maharashtra
APPEARS IN
RELATED QUESTIONS
State with Reasons whether the following statement is TRUE or FALSE:
Central bank (RBI) connot accept deposit from the public.
Which of the following banks regulate the supply of money in the economy?
Which of the following is a Commercial Bank?
It carries out the country's monetary policy.
What is meant by an overdraft facility given by a commercial bank?
What is a commercial bank?
How do exchange banks help in financing foreign trade?
Which type of bank is called the apex bank of India?
Which bank specifically supports India’s exports and imports through long-term finance?
How do banks act as financial intermediaries in an economy?
