Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is a key difference between Scheduled Banks and Non-Scheduled Banks in India?
Which of the following is a key difference between Scheduled Banks and Non-Scheduled Banks in India?
medium Q15 of 15
Step-by-Step Solution
Step 1: Understand the classification
Scheduled Banks are those included in the Second Schedule of the RBI Act, 1934, and meet certain criteria, making them eligible for RBI facilities like accommodation and clearinghouse membership.Step 2: Analyze options
Scheduled Banks are included in the Second Schedule of the RBI Act, 1934, and eligible for RBI facilities. correctly states this key difference. Scheduled Banks are not regulated by the Reserve Bank of India. is wrong because Scheduled Banks are regulated by RBI. Non-Scheduled Banks have higher capital requirements than Scheduled Banks. is incorrect as Scheduled Banks have stricter capital requirements. Non-Scheduled Banks can participate in the clearinghouse system. is wrong because Non-Scheduled Banks generally do not participate in clearinghouse systems.Final Answer:
Scheduled Banks are included in the Second Schedule of the RBI Act, 1934, and eligible for RBI facilities. → Option AQuick Check:
Scheduled Banks = RBI Act Second Schedule inclusion and RBI facilities ✅
Quick Trick: Remember: Scheduled Banks = RBI Act Second Schedule + RBI facilities.
Common Mistakes:
- Confusing regulatory status and eligibility for RBI facilities between Scheduled and Non-Scheduled Banks.
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