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    Question

    What does ‘on-tap licensing’ provided by the Reserve Bank of India mean?

    A The RBI window for granting banking licences will be open only on specific dates. Correct Answer Incorrect Answer
    B The RBI window for granting banking licences will open only when a proposal arises. Correct Answer Incorrect Answer
    C The RBI window for granting banking licences will be open throughout the year. Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    An “on-tap” facility would mean the RBI will accept applications and grant licences for banks throughout the year. On-tap bank licensing facility enables a window for making applications for bank licenses at the RBI throughout the year. Banking licenses were granted upon invitation of applications by RBI to prospective players.

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