Which of the following best describes the structure of cooperative banks in India?
Correct Answer:
(B)
A multi-tier system, with local, district, and state banks.
Cooperative banks in India operate under a three-tier structure: Primary Agricultural Credit Societies (PACS) at the village level, District Central Cooperative Banks (DCCBs) at the district level, and State Cooperative Banks (SCBs) at the state level. This system aims to provide financial services and credit to rural areas and farmers.
Ques:
42
Which of the following is NOT a key characteristic of Urban Cooperative Banks (UCBs)?
Correct Answer:
(C)
Operate at the village level within a district.
The term "Urban Co-operative Banks" refers to primary cooperative banks in urban and semi-urban areas. These banks primarily lent to small borrowers and businesses centred on communities, neighbourhoods, and workplace groups.
Ques:
43
Which Act regulates the functioning of cooperative banks in India?
Correct Answer:
(B)
The Banking Regulation Act, 1949
The Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) regulates the functioning of cooperative banks in India. This Act was extended to cooperative banks in 1966 as Banking Regulation Act, 1949 (AACS). The Reserve Bank of India (RBI) has regulatory powers over these banks under this Act, ensuring the interests of depositors and protecting the banking system.
Ques:
44
What is the role of the State Cooperative Bank in the cooperative banking structure?
Correct Answer:
(C)
Acts as the apex body at the state level for cooperative banks.
In the three-tier cooperative banking structure in India, the State Cooperative Bank (SCB) acts as the apex body at the state level for all cooperative banks within that state. It serves as the highest level cooperative bank, coordinating with other cooperative banks and societies within the state.