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Option 1 states that both Assertion (A) and Reason (R) are individually true, and R is the correct explanation of A.
Assertion (A) states that regional rural banks (RRBs), while being scheduled commercial banks, differ from them in certain respects. This means that RRBs have some differences in operations or characteristics compared to other scheduled commercial banks.
Reason (R) states that the areas of RRBs are limited to specified regions comprising one or more districts of a State. This means that RRBs are restricted to operating in specific regions or districts within a state.
Option 1 suggests that R is the correct explanation of A, meaning that the reason provided in R explains why the regional rural banks differ from other scheduled commercial banks. In this case, the reason stated in R supports the assertion made in A.
Therefore, option 1 is the correct answer as both A and R are individually true, and R is the correct explanation of A.