BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They are established under the Cooperative Societies Act
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They have profit as their main motive
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All are scheduled banks
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All of the above
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Detailed explanation-1: -UCBs are primarily registered as cooperative societies under the provisions of either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002 if the area of operation of the bank extends beyond the boundaries of one state.
Detailed explanation-2: -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.
Detailed explanation-3: -Features of a Cooperative Society – Voluntary Association, Separate Legal Entity, Control, Service Motive and Distribution of Surplus.
Detailed explanation-4: -They are established by State laws. Co-operative banks in India are registered under the Cooperative Societies Act. They are also regulated by the RBI and governed by Banking Regulations Act, 1949 and Banking Laws (Co-operative Societies) Act, 1955.