The Reserve Bank of India (RBI) has proposed a four -tier banking structure as opposed to the existing two-tier model in order to enhance competition and finance higher growth in the country.
Which of the following will not come under the third tier of the proposed system?

Options

A. Old private sector banks
B. Regional rural banks
C. Multi-state urban cooperative banks
D. Branches of foreign banks in India

Answer

D

Explanation

In a discussion paper released on 28 August 2013. The Reserve Bank of India said that the first tier may consist of three or four large Indian banks with domestic and international presence along with branches of foreign banks in India. Mid-sized banks including niche banks with economy-wide presence may form the second tier. The third tier would have old private sector banks, regional rural banks and multi-state urban cooperative banks (UCBs). The four tier may consist of many small privately owned locqal banks and cooperative banks. These would specifically cater to the credit requirements of small borrowers in the unorganised sector in unbanked and unbanked areas.