Question

Identify, which of the following statements is incorrect about the Rural Banking system in India. (Choose the correct option)

• A. The Rural Banking system in India consists of a set of multi-agency institutions.
• B. In the post-independence period, a well-structured Rural Banking system was formulated in India.
• C. Regional Rural Banks, Cooperative and Land Development Banks are components of the Rural Banking system in India.
• D. The Rural Banking system in India works under the guidance, instruction and supervision of the State Bank of India.

Hint:

The RBI plays the key role in regulating the Rural Banking system in India, not the State Bank of India.

Answer 1

The Correct Option is D

The Indian rural banking system is supervised by the Reserve Bank of India (RBI), not the State Bank of India. The RBI oversees the effective operation of rural banking entities, including Regional Rural Banks (RRBs) and cooperative banks.