RRB - GS questions based on daily current affairs

1)   Which of the following statements is/are correct about Regional Rural Banks (RRBs)?

1. RRBs were set up on recommendations of the Narasimham Working Group.
2. Union, state and sponsor bank holds equal stakes in RRBS.

a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Only 2

Explanation:
- According to RRB act 1976 share holding patten : Union (50%), state(15%) and sponsor bank(35%)
- By the amendment of 2014 RRB can issue shares in capital market to get more funds from private investors, but combined shareholding of Union, state, Sponser bank should not fall below 51%
2)   The Reserve Bank of India (RBI) on Thursday revised the priority sector lending target for regional rural banks (RRBs) to-

a. 90%
b. 60%
c. 75%
d. 70%
Answer  Explanation 

ANSWER: 75%

Explanation:
- The Reserve Bank of India (RBI) revised the priority sector lending target for regional rural banks (RRBs) to 75% of total outstanding loans from 60% earlier, effective January 2016.
- Categories of the priority sector include, medium enterprises, social infrastructure and renewable energy, with a cap of 15% of total outstanding.
- Agriculture should constitute 18% of total outstanding; target of 8% of total outstanding for small and marginal farmers within agriculture.

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