With reference to 'Urban Cooperative Banks' in India, consider the following statements: 1. They are…
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?
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Solution
UCBs are regulated by both RBI and the Registrar of Cooperative Societies (state government); not by local boards (Statement 1 incorrect). UCBs can issue equity and preference shares (Statement 2 correct). They were brought under the Banking Regulation Act in 1966 (Statement 3 correct).