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

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Q: (IAS/2021)
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 196
6.
Which of the statements given above is/are correct?

The correct answer is (2 and 3 only).

Explanation:

Urban Cooperative Banks (UCBs) in India are supervised and regulated by the Reserve Bank of India (RBI) and not by local boards set up by the State Governments. This statement is incorrect.
UCBs are allowed to issue equity shares and preference shares, and they can also raise funds through other means like deposits and borrowings. This statement is correct.
UCBs were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. This statement is correct.
Therefore, the correct answer is option (b) 2 and 3 only.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,188,147,44,188,60,43

keywords: 

{'banking regulation act': [0, 0, 0, 1], 'banks': [5, 6, 5, 25], 'equity shares': [0, 0, 0, 2], 'preference shares': [0, 0, 0, 1], 'state governments': [3, 4, 3, 22], 'amendment': [2, 1, 0, 5], 'purview': [0, 0, 0, 1]}

The correct answer is (2 and 3 only).

Explanation:

Urban Cooperative Banks (UCBs) in India are supervised and regulated by the Reserve Bank of India (RBI) and not by local boards set up by the State Governments. This statement is incorrect.

UCBs are allowed to issue equity shares and preference shares, and they can also raise funds through other means like deposits and borrowings. This statement is correct.

UCBs were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. This statement is correct.

Therefore, the correct answer is option (b) 2 and 3 only.