BANKING AFFAIRS

Detailed explanation-1: -The Act provides a framework under which commercial banking in India is supervised and regulated. The Act supplements the Companies Act, 1956. Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act.

Detailed explanation-2: -Exclusions: The Act does not apply to certain cooperative societies. These are: (i) primary agricultural credit societies, (ii) cooperative land mortgage banks, and (iii) any other cooperative societies (except those specified in the Act).

Detailed explanation-3: -Different types of banks, such as commercial banks, cooperative banks, rural banks, and private sector banks exist in India. The Reserve Bank of India (RBI) is the governing body for regulating and supervising the banks. Banking Regulation Act, 1949 is an Act that provides a framework for regulating the banks of India.

Detailed explanation-4: -PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of India. StCBs/DCCBs are registered under the provisions of State Cooperative Societies Act of the State concerned and are regulated by the Reserve Bank.

Detailed explanation-5: -State Bank of Sikkim only operates in Sikkim. It was established in 1968, 5 years before Sikkim acceded to India. State Bank of Sikkim is owned by the state government.