Question

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

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

RBI and NABARD regulate and supervise rural banks — not SBI.

Answer 1

The Correct Option is D

Statement (D) is inaccurate. The Rural Banking system in India is overseen by the Reserve Bank of India (RBI) and NABARD. The State Bank of India (SBI) does not supervise this system. All other statements are factually correct.