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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 1966. Which of the statements given above is/are correct?

UPSC · 2021 · Economy
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 1966. Which of the statements given above is/are correct?

Options

1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer: 2 and 3 only

Explanation:
Urban Cooperative Banks are regulated jointly by RBI and state registrars. They can issue equity and preference shares as per RBI guidelines and were brought under the Banking Regulation Act in 1966.

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