Question : LOCAL AREA BANKS



(a) the number of proposals received from different States to open Local Area Banks;

(b) whether the public response to such type of banks is not sufficient; and

(c) if so, the steps taken by the RBI to review the guidelines in this respect?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :

(a) Reserve Bank of India have received a total of 222 applications for setting up of Local Area Banks in different States in private sector up to the Quarter ended June,2000.

(b) The Scheme for setting up of Local Area Banks in private sector has received adequate response from the public.

(c) Do not arise in view of (b) above.