Question

    Consider the following Statements. (I)

    Co-operative banks in India are registered under the State’s Cooperative Societies Act. (II) Regulation of Cooperative banks is a part of Banking Regulations Act 1949. (III) Cooperative Banks have a single-tier system in India. which of the following statements is/are correct?
    A Only I Correct Answer Incorrect Answer
    B I & II Correct Answer Incorrect Answer
    C II & III Correct Answer Incorrect Answer
    D Only III Correct Answer Incorrect Answer
    E I, II, & III Correct Answer Incorrect Answer

    Solution

    A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks in India are registered under the States Cooperative Societies Act. The Co-operative banks are also regulated by the Reserve Bank of India (RBI) and governed by the Banking Regulations Act 1949 Banking Laws (Co-operative Societies) Act, 1955. The rural co-operative credit system in India is primarily mandated to ensure flow of credit to the agriculture sector. It comprises short-term and long-term co-operative credit structures. The short-term co-operative credit structure operates with a three-tier system - Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level.

    Practice Next

    Relevant for Exams: