Test: Public & Private Sector Banks - 2 - Banking Exams MCQ

The Basel Committee on Banking Supervision (BCBS) is the major international standard-setter for bank prudential regulation and serves as a venue for frequent cooperation on banking supervisory issues.

• Priority Sector Lending target for UCBs is at par with the target applicable to commercial banks.
• The banks have to lend at least 40% of the total credit to the priority sector and weaker section.
• There are no penal provisions for non-attainment targets to priority sector and weaker sections by the UCBs
• There are indirect incentives for UCBs such as
  • Branch expansion,
  • Expansion of the area of operation
  • Attainment of scheduled status.

The difference between the money generated from selling products to other countries and the money spent on buying goods and services from other countries is known as the current account deficit (CAD).

• An RBI committee under the chairmanship of former RBI deputy governor N.S. Vishwanathan has proposed a four-tier structure for urban cooperative banks.
• In its report released on 23 August 2021, the committee said tier-3 urban cooperative banks with deposits of ₹1,000 crores to ₹10,000 crores must function like SFBs (Small Finance Banking) if they meet a capital adequacy ratio of 15%. 
• The urban cooperative banks will have operational freedom for branch expansion and authorized dealer license on a par with universal banks.
• RBI:
  • Governor - Shaktikanta Das.
  • Headquarters - Mumbai.
  • Founded: 1 April 1935, Kolkata.

Capital Adequacy Ratio (CAR) is the ratio of a bank's capital to its risk-weighted assets and current liabilities.

The Co-operative Credit Institutions in India can be classified as under a three-tier structure- Primary Credit Societies at the bottom; Central Co-operative Bank at the middle; and State Co-operative Bank at the top.

CCEA- Cabinet Committee on Economic Affairs.

National Bank for Agricultural Development (NABARD) provides facility of re-finance to co-operative banks. 

In the field of credit rating, the credit conversion factor (CCF) is a coefficient. It's the proportion of a loan's additional amount used in the future compared to the amount that could be claimed.

Cooperative Bank needs to get registered under Banking Laws (Co-operative Societies) Act. 1965  for its operation.