Question
Consider the following statement about Urban
Co-operative Banks (UCBs): 1. It refers to primary cooperative banks located in urban areas only. 2. These banks were traditionally centred around communities, localities work place groups. 3. They essentially lent to small borrowers and businesses. Which of the above statement is/are correct?Solution
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centred around communities, localities work place groups. They essentially lent to small borrowers and businesses.
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