D. Rs. 5 lakh Explanation: Banks not under in the second schedule of RBI Act, 1934 are called non-scheduled banks. Banks with a reserve capital of less than 5 lakh rupees qualify as non-scheduled banks. Unlike scheduled banks, they are not entitled to borrow from the RBI for normal banking purposes, except, in emergency or ―abnormal circumstances. Jammu & Kashmir Bank is an example of a non-scheduled commercial bank.