State PCS PYQPrelims 2024

BPSC – Combined Competitive Examination · Question 75

According to the RBI, what is one of the eligibility criteria for a Small Finance Bank (SFB) to transition into a Universal Bank?

  1. Minimum net worth of ₹1,500 crore
  2. Minimum net worth of ₹500 crore
  3. Minimum net worth of ₹2,000 crore
  4. Minimum net worth of ₹1,000 crore
Show answer & explanation

Answer: (D) Minimum net worth of ₹1,000 crore

Explanation

Other conditions include listing, a 5-year track record, net profit in the last two years and GNPA ≤ 3%.

  • (A) Incorrect

    Wrong: the RBI set ₹1,000 crore.

  • (B) Incorrect

    Wrong: too low.

  • (C) Incorrect

    Wrong: too high.

  • (D) Correct

    Correct: the April 2024 RBI criteria require net worth of at least ₹1,000 crore.