Module: | Priority Sector, Consumer Protection & Digital Lending
Q96: Which of the following statements, regarding compliance with the 25 percent Unbanked Rural Centre (URC) norm, are correct?
1. Part-time banking outlets are counted toward the norm on a pro-rata basis (e.g., 20 hours/week equals 1 full outlet).
2. Outlets opened in Tier 3 to Tier 6 centres of North-Eastern States, Sikkim, and LWE affected districts are treated as equivalent to URCs.
3. The benefit of opening excess outlets in URCs can be carried forward for a period of two years.
4. Outlets opened in Union Territories of Southern India are automatically treated as deemed URCs, regardless of population tier.
2. Outlets opened in Tier 3 to Tier 6 centres of North-Eastern States, Sikkim, and LWE affected districts are treated as equivalent to URCs.
3. The benefit of opening excess outlets in URCs can be carried forward for a period of two years.
4. Outlets opened in Union Territories of Southern India are automatically treated as deemed URCs, regardless of population tier.
✅ Correct Answer: B
The correct answer is B. Statements 1, 2, and 3 are correct.
To provide flexibility, the RBI allows part-time banking outlets to be counted toward the 25% norm on a pro-rata basis.
Furthermore, to incentivize expansion in difficult terrains, outlets opened in Tier 3 to Tier 6 centres of North-Eastern States, Sikkim, and Left Wing Extremism (LWE) affected districts are explicitly treated as deemed URCs.
Banks are also permitted to carry forward the benefit of opening excess outlets in URCs for a period of two years.
Statement 4 is completely incorrect; there is no regulatory provision that automatically treats outlets opened in Southern Union Territories as deemed URCs regardless of population tier.
To provide flexibility, the RBI allows part-time banking outlets to be counted toward the 25% norm on a pro-rata basis.
Furthermore, to incentivize expansion in difficult terrains, outlets opened in Tier 3 to Tier 6 centres of North-Eastern States, Sikkim, and Left Wing Extremism (LWE) affected districts are explicitly treated as deemed URCs.
Banks are also permitted to carry forward the benefit of opening excess outlets in URCs for a period of two years.
Statement 4 is completely incorrect; there is no regulatory provision that automatically treats outlets opened in Southern Union Territories as deemed URCs regardless of population tier.