Question

Which of the following statements is true or false?

a) Initially, 5 regional rural banks were set up in 1970.
b) Every regional rural banks is sponsored by a national bank.

• A. (a) is true, but (b) is false
• B. (a) is false, but (b) is true
• C. both (a) and (b) are correct
• D. both (a) and (b) are false

Answer 1

Answer: (B)

(a) is false, but (b) is true

Nationalized Bank are the public sector banks, mostly owned by the state. All the Regional Rural Banks are owned by either central government or state government. Hence, nationalized banks sponsor Regional Banks for greater rural development and availability of basic banking activities in rural areas.