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Consider the following statements about the Co-operative banks:
1. They are not regulated by the Reserve bank of India.
2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.
Which of the above statements is/are correct?
1. They are not regulated by the Reserve bank of India.
2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.
Which of the above statements is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements about the Co-operative banks:1. They...
Co-operative Banks in India
Co-operative banks play a crucial role in the Indian banking system, especially in rural and semi-urban areas. They are financial institutions that are owned and operated by their members, who are usually individuals with a common bond like locality, profession, or interest. These banks are governed by the Cooperative Societies Act and are primarily set up to provide financial services to their members.
Statement 1: They are not regulated by the Reserve Bank of India (RBI).
This statement is incorrect. Co-operative banks in India are indeed regulated by the Reserve Bank of India. The RBI exercises regulatory control over these banks to ensure their stability, soundness, and compliance with various rules and regulations. The Banking Regulation Act, 1949, empowers the RBI to regulate and supervise co-operative banks. These banks are subject to periodic inspections, reporting requirements, and prudential norms set by the RBI. The RBI's regulatory oversight helps maintain financial stability and protect the interests of depositors.
Statement 2: All banks registered under the Cooperative Societies Act, 1912, are considered co-operative banks.
This statement is correct. Banks that are registered under the Cooperative Societies Act, 1912, are recognized as co-operative banks. The Cooperative Societies Act provides a legal framework for the formation, functioning, and management of co-operative societies, including co-operative banks. These banks are established by individuals or groups with a common interest, such as farmers, small traders, or artisans. They operate on the principle of mutual assistance and aim to provide affordable credit and other financial services to their members.
Conclusion:
In conclusion, co-operative banks in India are regulated by the Reserve Bank of India, contrary to the first statement. However, the second statement is correct, as all banks registered under the Cooperative Societies Act, 1912, are considered co-operative banks. It is important to have regulatory oversight to ensure the stability and trustworthiness of these banks, as they serve a significant segment of the population and contribute to financial inclusion.
Co-operative banks play a crucial role in the Indian banking system, especially in rural and semi-urban areas. They are financial institutions that are owned and operated by their members, who are usually individuals with a common bond like locality, profession, or interest. These banks are governed by the Cooperative Societies Act and are primarily set up to provide financial services to their members.
Statement 1: They are not regulated by the Reserve Bank of India (RBI).
This statement is incorrect. Co-operative banks in India are indeed regulated by the Reserve Bank of India. The RBI exercises regulatory control over these banks to ensure their stability, soundness, and compliance with various rules and regulations. The Banking Regulation Act, 1949, empowers the RBI to regulate and supervise co-operative banks. These banks are subject to periodic inspections, reporting requirements, and prudential norms set by the RBI. The RBI's regulatory oversight helps maintain financial stability and protect the interests of depositors.
Statement 2: All banks registered under the Cooperative Societies Act, 1912, are considered co-operative banks.
This statement is correct. Banks that are registered under the Cooperative Societies Act, 1912, are recognized as co-operative banks. The Cooperative Societies Act provides a legal framework for the formation, functioning, and management of co-operative societies, including co-operative banks. These banks are established by individuals or groups with a common interest, such as farmers, small traders, or artisans. They operate on the principle of mutual assistance and aim to provide affordable credit and other financial services to their members.
Conclusion:
In conclusion, co-operative banks in India are regulated by the Reserve Bank of India, contrary to the first statement. However, the second statement is correct, as all banks registered under the Cooperative Societies Act, 1912, are considered co-operative banks. It is important to have regulatory oversight to ensure the stability and trustworthiness of these banks, as they serve a significant segment of the population and contribute to financial inclusion.
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Consider the following statements about the Co-operative banks:1. They...
• Statement 1 is incorrect: These are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965.
Co-operative Banks
• Co-operative banks operate in both urban and non-urban areas.
• All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.
• These are banks run by an elected managing committee with provisions of members’ rights and a set of “communally developed and approved bylaws and amendments.”
• In the urban centers, they mainly finance entrepreneurs, small businesses, industries, self-employment and cater to home buying and educational loans.
• Likewise, co-operative banks in rural areas primarily cater to agricultural-based activities, which include farming, livestock, dairies, and hatcheries, etc. They also extend loans to small scale units, cottage industries, and self-employment activities like artisanship.
• Unlike commercial banks, who are driven by profit, co-operative banks work on a “no profit, no loss” basis.
• These are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965.
Co-operative Banks
• Co-operative banks operate in both urban and non-urban areas.
• All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.
• These are banks run by an elected managing committee with provisions of members’ rights and a set of “communally developed and approved bylaws and amendments.”
• In the urban centers, they mainly finance entrepreneurs, small businesses, industries, self-employment and cater to home buying and educational loans.
• Likewise, co-operative banks in rural areas primarily cater to agricultural-based activities, which include farming, livestock, dairies, and hatcheries, etc. They also extend loans to small scale units, cottage industries, and self-employment activities like artisanship.
• Unlike commercial banks, who are driven by profit, co-operative banks work on a “no profit, no loss” basis.
• These are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965.
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Consider the following statements about the Co-operative banks:1. They are not regulated by the Reserve bank of India.2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements about the Co-operative banks:1. They are not regulated by the Reserve bank of India.2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the Co-operative banks:1. They are not regulated by the Reserve bank of India.2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the Co-operative banks:1. They are not regulated by the Reserve bank of India.2. All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?.
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