With reference to ‘Urban Cooperative Banks’ in India consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

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YESPYQ · Accepted Answer

Correct answer: 2 and 3 only. A Co-operative bank belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are under dual control of the RBI and Regis- trar of Cooperative Societies. Agriculture, some small-scale busi- nesses, and independent contractors primarily receive funding from cooperative banks. These banks are cooperative credit in- stitutions that are registered under the Cooperative Societies Act 1912. These banks work according to the cooperative prin- ciples of mutual assistance. Co-operative banks have a three-tier structure:  Primary Credit Societies-PCSs (agriculture or urban).  District Central Co-Operative Banks- DCCBs.  State Co-Operative Banks-SCBs (at the apex level). Statement 1 is incorrect : After Banking Regulation(Amend- ment) Act 2020 was passed, Most of the powers were transferred to RBI from the Registrars of the cooperative societies. Urban Cooperative Banks are subject to dual regulation by both the Re- serve Bank of India (RBI) and the respective State Governments. The RBI oversees their banking

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