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    Question

    Which of the following criteria defines a "defunct

    co-operative bank" according to the Deposit Insurance and Credit Guarantee Corporation Act?
    A A co-operative bank which has been prohibited from receiving fresh deposits Correct Answer Incorrect Answer
    B A co-operative bank which has been ordered or directed to be wound up Correct Answer Incorrect Answer
    C A co-operative bank which has converted itself into a non-banking cooperative society Correct Answer Incorrect Answer
    D Either a or b Correct Answer Incorrect Answer
    E Either a or b or c Correct Answer Incorrect Answer

    Solution

    Section 2 Definitions: (ff) “defunct co-operative bank” means a co-operative bank – (i) which has been prohibited from receiving fresh deposits; or (ii) which has been ordered or directed to be wound up; or (iii) which has transferred all its deposit liabilities in India to any other institution; or (iv) which has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulation Act, 1949; or (v) which has converted itself into a non-banking cooperative society; or (vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned under any law for the time being in force and such scheme does not permit the acceptance of fresh deposits; or (vii) which has been granted a moratorium which is in operation; or (viii) in respect of which an application for winding up is pending before the Registrar of Co-operative Societies or other competent authority under any law relating to co-operative societies for the time being in force in a State; or (ix) in respect of which any direction, prohibition, order or scheme referred to in sub-section (1) of section 18A is issued or made.

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