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?

Question

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? ​

CollectorBabu · Accepted Answer

Correct Answer: 2 and 3 only ​. Statement 1 is incorrect  : In 2020, an amendment brought them under the command of the Reserve Bank of India (RBI).  Statements 2 and 3 are correct . Most of the banks in India function under the Banking Regulation Act, 1949.

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