In order to receive deposits from temple trusts and companies, the Reserve Bank was asked by the local banks to put them under the 'scheduled banks' category. Scheduled banks are generally preferred by temple trusts and company to place deposits. In the country, there are four LABs, they are Subhadra which is Kolhapur based, Krishna Bhima Samruddhi based in Mahabubnagar, Costal and the country's largest LAB, Capital which is based in Jalandhar.
LABs provide finance for various kinds of allied activities, agriculture, units of the agro-industrial, small scale industries as well as for activities for trading. The RBI in its 2012-13 report on the Banking Progress and trend in India, LABs show guarantee of little scale saving money establishments that might be explored different avenues regarding on a bigger scale in future. Banks, for example Labs, posture less risk to systemic dependability given their constrained zone operations with minimal fiscal interconnected.