Just for a POC i was working on, Need to check weather we can restrict a Schema available only for a particular Folder "A". Means while creating component inside folder "A" that schema should populate in Schema Dropdown. If we are creating component out of folder "A" that schema should not be available in Schema Dropdown. Is this possible?
The nearest to an out of the box solution you have available is described by Alvin in the comments - and as Alvin indicates - it's not a good solution.
You could interact with the Event System and stop saving on non-permitted schemas. There are a few implementation patterns you could consider such as:
You could branch out and really help the editors through a GUI extension - the biggest benefit over the Event System solution alone is that editors can be 'spoon-fed' and not put through the pain of almost compelting a taks and then hitting 'save' to be told that's not allowed.
The most contentious could be to train and trust editors. To Alvin's point - adding the 'default' schema to folders often works (if the IA/content structure in general suits) as it's then a concious decision for an editor to select another content type. Further to this ensuring that editors are informed of the reasons for something often coerces compliance :)
You can restrict one schema to a folder, then only component of that schema can be created in that folder. but there is no OOTB mechanism to restrict this from appearing in another folder. My be you need to restrict than each folder with a schema to achieve it, but very cumbersome.