Question

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 1996

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer 1

Correct option is (b) 2 and 3 only

Banking Regulation (Amendment) Ordinance/Act 2020: regulatory powers over UCBS rely solely to RBI & not State Governments. So, #1 wrong, Thus A/C/D are eliminated.