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UPSC PYQPrelims 2021

Civil Services Examination · Question 5

With reference to 'Urban Cooperative Banks' in India, consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer & explanation

Answer: (B) 2 and 3 only

Explanation

UCBs are regulated by the RBI and State Registrars of Cooperative Societies, not local boards. They were brought under the BR Act in 1966, and the 2020 amendment allowed them to issue equity/preference shares.