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Which of the following statements is/are incorrect?
1. Only central cooperative banks have access to Reserve Bank of India.
2. Cooperative banks are established on unitary basis.
3. Reserve Bank of India has no control over cooperative banks.
  • a)
    Only 1
  • b)
    Both 1 and 2
  • c)
    Both 2 and 3
  • d)
    Only 3
  • e)
    All 1, 2 and 3
Correct answer is option 'E'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is/are incorrect?1. Only central coo...
Cooperative banks are small units that operate in urban and non-urban centres. They finance small debtors in industrial and commercial sectors as well as professional and salary classes. Regulated by the Reserve Bank of India, they are governed by Banking Act, 1949, and Banking Laws (Cooperative Societies) Act, 1965.
Not only cooperative banks, but all the banks have access to Reserve bank of India, as it acts as Banker's bank. So, statement A is not correct.
A cooperative bank is a financial entity that belongs to its members, who are both owners and customers of their bank. Cooperative banks are often created by people belonging to the same local or professional community who share a common interest. So, cooperative banks are not established on Unitary basis. Statement B is thus not correct.
Cooperative banks are regulated by the Reserve Bank of India, Banking Act, 1949, and Banking Laws (Cooperative Societies) Act, 1965. So, statement C is incorrect.
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