Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Priority Sector, Consumer Protection & Digital Lending

Q90: An 'Unbanked Rural Centre' (URC) is defined as a rural centre that lacks a CBS-enabled 'Banking Outlet', and falls under which specific population tier classifications?

A
Tier 3 and 4 only
B
Tier 4 and 5 only
C
Tier 5 and 6 only
D
Tier 6 only
✅ Correct Answer: C
The correct answer is C. According to RBI guidelines, an 'Unbanked Rural Centre' (URC) is strictly defined as a rural centre falling under Tier 5 and Tier 6 population categories (as per the 2011 Census) that currently does not have a Core Banking Solution (CBS) enabled 'Banking Outlet' of a Scheduled Commercial Bank, Payment Bank, or Small Finance Bank.
Tier 5 represents populations between 5,000 and 9,999, and Tier 6 represents populations less than 5,000.
Option A (Tier 3 and 4) and Option B (Tier 4 and 5) are incorrect because Tier 3 and Tier 4 represent Semi-Urban centres (populations from 10,000 to 99,999). Option D is incorrect because it arbitrarily excludes Tier 5 centres, which also qualify as URCs if they lack a banking outlet.