Banking Awareness for Bank Exams : Test 1


Banking Awareness is a very important part of General Awareness Section of IBPS Common Exam for Probationary Officers & Bank Clerks. In this series you will get study material on important Banking Awareness topics, which may be useful for your interviews also. In this post you can learn about the types of some of the banks in the country, if you have any query you can raise that in the comment section. If you want to know about any topic on Banking Awareness, you can ask us for that.

 Regional Rural Banks (RRBs):

  1. Established in 1975
  2. Paid-up capital of each rural bank is vary from Rs 25 lakh to Rs 1 crore contributed by Central Government, State Government and Public-sector commercial banks in the ratio of 50:15:35.
  3. Authorized capital of RRB is Rs 5 cr.
  4. The commercial banks (nationalized) are responsible for the actual setting up of RRBs. Thus the RRBs are also public sector banks.
  5. Provides credit and other facilities to agriculture and non-agriculture productive activities in rural areas.
Lead Bank Scheme: Lead Bank scheme of the RBI was adopted in December 1969 on recommendation of the Gadgil Group. The group was of the view that because of the diversity of conditions all over the country, an area approach was essential for appropriate credit arrangements on the basis of local conditions.

Local Area Banks: For providing institutional mechanisms to promote rural savings and provide credit for viable economic activities in the local areas, RBI decided on 24.8.96, to allow establishment of local area banks in private sector as Scheduled Banks.

The no. of local area banks working in the country are 5, the latest being Krishan Bhima Samruddhi LAB. 

Co-operative Banks
    1. A co-operative bank is registered under the cooperative societies law of the state in which it is founded.
    2. Serves the needs of the rural sector in general and the agricultural sector in particular.
    3. Provides short-term and medium-term credit to agriculture.  
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