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Consider the following statements regarding the changes to The Banking Regulation Act approved by Parliament in September 2020.
1. The amended law has brought cooperative banks under the direct supervision of the RBI.
2. Urban cooperative banks will now be treated on a par with commercial banks.
3. Cooperative bank can issue equity shares, preference shares, or special shares to its members without prior approval of the RBI.
Which of the above statements is/are correct?
  • a)
    1, 2 
  • b)
    1, 3 
  • c)
    2, 3 
  • d)
    1 only
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Consider the following statements regarding the changes to The Banking...
Cooperative banks have long been under dual regulation by the state Registrar of Societies and the RBI. As a result, these banks have escaped scrutiny despite failures and frauds.
The changes to The Banking Regulation Act approved by Parliament in September 2020, brought cooperative banks under the direct supervision of the RBI.
The amended law has given RBI the power to supersede the board of directors of cooperative banks after consultations with the concerned state government. Earlier, it could issue such directions only to multi-state cooperative banks.
Also, urban cooperative banks will now be treated on a par with commercial banks.
And a cooperative bank can, with prior approval of the RBI, issue equity shares, preference shares, or special shares to its members or to any other person residing within its area of operation, by way of public issue or private placements.
It can also issue unsecured debentures or bonds with maturity of not less than 10 years. This essentially means non-members can become shareholders of the bank, and this will allow the RBI to merge failing banks quickly.
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Consider the following statements regarding the changes to The Banking Regulation Act approved by Parliament in September 2020.1. The amended law hasbrought cooperative banks under the direct supervision of the RBI.2. Urban cooperative banks will now be treated on a par with commercial banks.3. Cooperative bank can issue equity shares, preference shares, or special shares to its memberswithout prior approval of the RBI.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1 onlyCorrect answer is option 'A'. Can you explain this answer?
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Consider the following statements regarding the changes to The Banking Regulation Act approved by Parliament in September 2020.1. The amended law hasbrought cooperative banks under the direct supervision of the RBI.2. Urban cooperative banks will now be treated on a par with commercial banks.3. Cooperative bank can issue equity shares, preference shares, or special shares to its memberswithout prior approval of the RBI.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1 onlyCorrect answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements regarding the changes to The Banking Regulation Act approved by Parliament in September 2020.1. The amended law hasbrought cooperative banks under the direct supervision of the RBI.2. Urban cooperative banks will now be treated on a par with commercial banks.3. Cooperative bank can issue equity shares, preference shares, or special shares to its memberswithout prior approval of the RBI.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1 onlyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the changes to The Banking Regulation Act approved by Parliament in September 2020.1. The amended law hasbrought cooperative banks under the direct supervision of the RBI.2. Urban cooperative banks will now be treated on a par with commercial banks.3. Cooperative bank can issue equity shares, preference shares, or special shares to its memberswithout prior approval of the RBI.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1 onlyCorrect answer is option 'A'. Can you explain this answer?.
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