Question

Which of the following is not a part of the scheduled banking structure in India?

• A. State Co-operative Banks
• B. Public Sector Banks
• C. Private Sector Banks
• D. Money lenders

Answer 1

Answer: (D)

Money lenders

The commercial banks, not included in the Second Schedule of the RBI Act are known as Non-scheduled Banks. They are not entitled to get facilities, like refinance and re-discounting of bills, etc from RBI. They do not get the prestige like Scheduled Banks. They are mainly engaged in lending money, discounting and collecting bills and various agency services. RBI currently does not encourage the opening of non-scheduled banks.

They are usually the small money lenders who operate without guidelines or rules and may cheat their customers.