Local area bank is established as per RBI guidelines dated 24th Aug. 1996 as per finance minister's statement in budge speech. Local area bank is restricted to operate in three districts only and to finance agricultural and small scale industry in the area of operation. |
As per LABs in principal approval for licence same rules as per RRBs applicable. For RRBs as per income tax Act 1961 U/s. 80P income is exempt. Are the same income tax provision is applicable for "Local Area Bank", please reply at earliest.