In which year was the Local Area Bank (LAB) Scheme introduced?

Correct option is B

The correct answer is: (b) 1996
Explanation:
· The Local Area Bank (LAB) Scheme was introduced by the Government of India in August 1996.
· It aimed to promote rural and semi-urban banking, allowing private sector participation in providing credit and banking services in local areas.
Information Booster:
· LABs were designed to operate in three contiguous districts.
· Their objective was to mobilize rural savings and provide institutional credit for local economic growth.
· LABs are regulated by the Reserve Bank of India (RBI).
· Minimum paid-up capital requirement for LABs was ₹5 crore.
· Notable LABs included Coastal LAB, Krishna Bhima Samruddhi LAB, Subhadra LAB, etc.