Q. The Regional Rural Banks (Amendment) Act, 2015:

1. raises the amount of authorised capital to Rs 2000 for RRBs
2. mandates the combined shareholding of the central government and the sponsor bank to be not less than 51%

Which of the above statements is/are correct?
Answer: Both 1 & 2
Notes: The Act provides for RRBs to be sponsored by banks. The Act raises the amount of authorised capital to Rs 2,000 crore and states that it cannot be reduced below Rs One crore. The Regional Rural Banks (Amendment) Act, 2015 allows the RRBs to raise the capital from sources other than existing shareholders, but mandates the combined shareholding of the central government and the sponsor bank to be not less than 51%. Also, it states that the Central Government shall consult the concerned State Government if the level of shareholding in the Regional Rural Bank of such State Government is reduced below fifteen per cent.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.