Test: Public & Private Sector Banks - 1 - Banking Exams MCQ

An automated clearing house (ACH) is a computer-based electronic network that allows participating financial institutions to execute transactions, mainly low-value domestic transfers.

• The co-operative bank is basically for the retail customers or cooperatives not for the large scale customers. It is also known as Bank of Cooperatives.
• It can be classified into two segments which are - 1) Urban Cooperative Banks and 2) Rural Cooperatives.
• Urban Cooperative Banks are monitored by RBI.
• Banking activities of Rural Cooperatives are regulated by a shared arrangement between RBI and NABARD.
• Headquarters of RBI and NABARD both are in Mumbai.

Any fund established or incorporated in India that is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing by a defined investment policy for the benefit of its investors is referred to as an Alternative Investment Fund or AIF.

Anyonya Co-operative Bank Limited (ACBL) located in the city of Vadodara (formerly Baroda) in Gujarat, is the first co-operative bank in India. The Reserve Bank of India ordered the bank to stop most of its operations under Section 35 of the Banking Regulation Act, on 14 September 2007, and ACBL closed in March 2008. ACBL was established in 1889 under the name Anyonya Sahayakari Mandali Co-operative Bank Limited, with a primary objective of providing an alternative to exploitation by moneylenders for Baroda's residents

The Association of Mutual Funds in India (AMFI) is dedicated to expanding the Indian Mutual Fund Industry on professional, healthy, and ethical lines, as well as to improving and maintaining standards in all areas to safeguard and promote mutual funds and their unit holders.

• The Central Co - operative Banks occupies a unique place in the three tier credit system. In the three tier system the central bank occupying the middle place, provides a connecting link between the lower (Primary Credit Societies) and the higher units (State Co-operative societies).
• The problems of lower units are conveyed to the higher units and the solutions, suggestions offered by the higher units are transmitted to the lower units in turn. By this process a central bank acts as a mediator to the primary societies and state co - operative bank.
• It finances the lower units– Primary Credit Societies for different purposes in the time of resource deficiency however involves less in commercial banking. As an intermediary, the central cooperative banks are closer to the primary societies than an Apex Bank being more close to the needs of the local people of the society.
• Hence 1, 2, and 3 statement are correct. 

Aadhaar Payments Bridge System (APBS) is used for crediting DBT transactions for Government/ Government agency disbursements.

The Cooperative movement in India was started, primarily for dealing with the problem of rural credit.
The origin of Indian cooperative banking started is with the passing of the Cooperative Credit Societies Act in 1904.
The objective of this Act was to establish cooperative credit societies “to encourage thrift, self-help and cooperation among agriculturists, artisans and persons of limited means.”
Name of some co-operative banks India are:

• Andhra Pradesh State Co-operative Bank Ltd
• The Bihar State Co- operative Bank Ltd.
• Chhatisgarh Rajya Sahakari Bank Maryadit

Three tier structures exist in the cooperative banking:
i. State cooperative bank at the apex level.
ii. Central cooperative banks at the district level.
iii. Primary cooperative banks are at the base or local level.

An Asset Reconstruction Company (ARC) is a specialist financial firm that purchases non-performing assets (NPAs) from banks and financial institutions to help them clean up their balance sheets.

Cooperative Banks are regulated by RBI.