[amp_mcq option1=”All scheduled commercial banks have to open at least 25% of their branches in tier-1 and tier-2 areas” option2=”All scheduled commercial banks need RBI’s permission before opening 25% of their branches in tier-1 areas” option3=”All scheduled commercial banks to open at least 25% of their branches in tier 3 to 6 areas” option4=”None of above” correct=”option3″]
The correct answer is C. All scheduled commercial banks to open at least 25% of their branches in tier 3 to 6 areas.
The Rural Branching Mandate is a regulation by the Reserve Bank of India (RBI) that requires all scheduled commercial banks to open at least 25% of their branches in rural areas. The objective of this mandate is to promote financial inclusion and to provide access to banking services to the people in rural areas.
Tier 1 and tier 2 areas are urban areas, while tier 3 to 6 areas are rural areas. The RBI has classified all districts in India into six tiers based on their population and economic development. Tier 1 districts are the most urbanized and developed districts, while tier 6 districts are the least urbanized and developed districts.
The Rural Branching Mandate is a significant step towards promoting financial inclusion in India. It will help to improve access to banking services for the people in rural areas, and it will also help to promote economic development in these areas.
Option A is incorrect because it does not require banks to open branches in rural areas. Option B is incorrect because it does not require banks to open branches in rural areas. Option D is incorrect because it is not a correct statement.