Types of Banks in India

What are the two broad classifications of Indian banks?

• Scheduled banks

• Non-Scheduled banks

What is the minimum paid-up capital for scheduled banks?

• ₹5 lakh or more

• Less than ₹5 lakh

What is a key feature that distinguishes scheduled banks from non-scheduled banks?

• RBI Listing

• Minimum Capital

• RBI Borrowing Facility

• Cash Reserve Ratio (CRR)

• Clearing House Membership

What is the role of scheduled banks in India's economy?

• Fostering financial stability

• Providing loans to non-scheduled banks

What are the challenges faced by non-scheduled banks?

• Higher operational risks

• Limited access to capital

What is the significance of understanding the types of banks in India?

• Key to understanding banking dynamics

• Not important for MBA students