Consider the following statements regarding Scheduled Commercial Banks (SCBs) in India:
1. SCBs are commercial banks included in the Second Schedule of the Reserve Bank of India Act, 1934.
2. Every SCB is eligible to borrow from the Reserve Bank of India at the bank rate.
3. SCBs automatically acquire membership in the clearing house.
4. SCBs include only Public Sector Banks and Private Sector Banks.

Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1, 2 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4

Question

Consider the following statements regarding Scheduled Commercial Banks (SCBs) in India:
1. SCBs are commercial banks included in the Second Schedule of the Reserve Bank of India Act, 1934.
2. Every SCB is eligible to borrow from the Reserve Bank of India at the bank rate.
3. SCBs automatically acquire membership in the clearing house.
4. SCBs include only Public Sector Banks and Private Sector Banks.

Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1, 2 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : SCBs are banks that are included in the Second Schedule of the Reserve Bank of India Act, 1934, which makes them eligible for certain facilities provided by the RBI.

Statement 2 is correct : SCBs are eligible for borrowing from the RBI at the bank rate, as per the conditions mentioned in the RBI Act.

Statement 3 is correct : SCBs automatically acquire membership of the clearing house, which allows them to clear and settle inter-bank transactions.

Statement 4 is not correct : SCBs include Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Scheduled Payments Banks, Scheduled Small Finance Banks, and Scheduled Co-operative Banks, not just Public and Private Sector Banks.

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Scheduled Commercial Banks (SCBs)

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M Question 1	⏱ 0
Consider the following statements regarding Scheduled Commercial Banks (SCBs) in India: 1. SCBs are commercial banks included in the Second Schedule of the Reserve Bank of India Act, 1934. 2. Every SCB is eligible to borrow from the Reserve Bank of India at the bank rate. 3. SCBs automatically acquire membership in the clearing house. 4. SCBs include only Public Sector Banks and Private Sector Banks. Which of the statements given above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4