Consider the following statements regarding Urban Cooperative Banks (UCBs):
1. UCBs are governed by the RBI and the Registrar of Cooperative Societies.
2. The RBI can inspect UCBs but cannot enforce penalties.
3. UCBs can accept deposits and provide both short-term and long-term loans.

Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1 ,2 and 3

Question

Consider the following statements regarding Urban Cooperative Banks (UCBs):
1. UCBs are governed by the RBI and the Registrar of Cooperative Societies.
2. The RBI can inspect UCBs but cannot enforce penalties.
3. UCBs can accept deposits and provide both short-term and long-term loans.

Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1 ,2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : Urban Cooperative Banks (UCBs) in India are subject to a dual regulatory framework, with the Reserve Bank of India (RBI) overseeing banking functions and the Registrar of Cooperative Societies (RCS) handling administrative and managerial aspects

Statement 2 is not correct : The RBI does have the power to inspect UCBs and also to impose penalties for non-compliance with regulations, as outlined in the Banking Regulation Act, 1949.

Statement 3 is correct : UCBs have the capability to both accept deposits and extend loans, whether short-term or long-term, in accordance with regulations.

Banking and Financial Institutions

Urban Cooperative Banks (UCBs)

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M Question 1	⏱ 0
Consider the following statements regarding Urban Cooperative Banks (UCBs): 1. UCBs are governed by the RBI and the Registrar of Cooperative Societies. 2. The RBI can inspect UCBs but cannot enforce penalties. 3. UCBs can accept deposits and provide both short-term and long-term loans. Which of the above statements are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1 ,2 and 3