BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the bank has not been placed under any directions under Section 35A of the Banking Regulation Act, 1949.
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the bank’s board should take the decision of closing down the extension counter/branch and the decision should be properly minuted in the official record of proceedings of the Board Meeting.
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the bank should give proper notice to all existing depositors/clients of the branch through a press release in local leading newspapers as also through a circular to each constituent of the branch, well in advance of the closure of the branch.
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All of the above
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Detailed explanation-1: -Detailed Solution. The Reserve Bank of India (RBI) granted in-principle approval to Uttar Pradesh-based Shivalik Mercantile Co-operative Bank Ltd to convert to a small finance bank (SFB), becoming the first urban cooperative bank (UCB).
Detailed explanation-2: -With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: They are supervised and regulated by local boards set up by the State Governments. They can issue equity shares and preference shares.
Detailed explanation-3: -Primary Urban Co-operative Banks norms were reviewed on the recommendations of K. Madhava Rao committee.
Detailed explanation-4: -Under the provisions of Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches.