“Scheduled bank” in India means a bank _____.

a. Incorporated under the Companies Act, 1956

b. Authorized to the Banking business

c. Governed by the Banking Regulation Act, 1949

d. Included in the Second schedule to the Reserve Bank of India Act 1934

ANSWER: Included in the Second schedule to the Reserve Bank of India Act 1934

Explanation:

A scheduled bank, in India, refers to a bank which is listed in the 2nd Schedule of the Reserve Bank of India Act, 1934.

A scheduled bank is eligible for loans from the Reserve Bank of India at bank rate. They are also given membership to clearing houses.

Banks not under this Schedule are called non-scheduled banks.