With reference to 39 Urban Cooperative Banks 39 in India consider the following statements 1 They ar...........

Economic Affairs Types of Banks and Banking

Download Solution PDF

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.

How many of the statements given above are correct?

This questions was previously asked in

UPSC CSP Previous Year Paper (2021)

Download PDF Appear Online

View All IAS Previous Year Papers

Only One

Only Two

All Three

None

छोटे Courses बड़े Results

Master Types of Banks and Banking

Prepare through Micro-courses

Try Now

Explanation:

2 and 3 only

Incorrect :Urban Cooperative Banks (UCBs) are supervised and regulated by both the Reserve Bank of India (RBI) and the respective State Governments. The dual control is exercised based on the Banking Regulation Act, 1949, and the Cooperative Societies Act of the respective states.

Correct After the Banking Regulation (Amendment) Act, 2020, UCBs were allowed to issue equity shares, preference shares, or special shares to their members, or to any other person residing within their area of operation.

Correct UCBs were brought under the purview of the Banking Regulation Act, 1949, through an amendment in 1966. Before this amendment, they were governed only by the respective State Cooperative Societies Act.