{"id":91853,"date":"2025-06-01T11:07:52","date_gmt":"2025-06-01T11:07:52","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91853"},"modified":"2025-06-01T11:07:52","modified_gmt":"2025-06-01T11:07:52","slug":"with-reference-to-urban-cooperative-banks-in-india-consider-the-fol","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/","title":{"rendered":"With reference to &#8216;Urban Cooperative Banks&#8217; in India, consider the fol"},"content":{"rendered":"<p>With reference to &#8216;Urban Cooperative Banks&#8217; in India, consider the following statements:<\/p>\n<ul>\n<li>They are supervised and regulated by local boards set up by the State Governments.<\/li>\n<li>They can issue equity shares and preference shares.<\/li>\n<li>They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 and 3 only&#8221; option3=&#8221;1 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2021<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2021.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2021\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect.<br \/>\n&#8211; UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct.<br \/>\n&#8211; Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe dual regulation structure (RBI and RCS) has historically posed some challenges. The Banking Regulation (Amendment) Act, 2020, sought to bring UCBs more directly under RBI supervision concerning banking-related matters, while cooperative administration remains with the RCS.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to &#8216;Urban Cooperative Banks&#8217; 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. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to &#8216;Urban Cooperative Banks&#8217; in India, consider the fol\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/#more-91853\">Detailed Solution<span class=\"screen-reader-text\">With reference to &#8216;Urban Cooperative Banks&#8217; in India, consider the fol<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1110,1120,1190],"class_list":["post-91853","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1110","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to &#039;Urban Cooperative Banks&#039; in India, consider the fol<\/title>\n<meta name=\"description\" content=\"The correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect. - Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect. - UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct. - Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to &#039;Urban Cooperative Banks&#039; in India, consider the fol\" \/>\n<meta property=\"og:description\" content=\"The correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect. - Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect. - UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct. - Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:07:52+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to 'Urban Cooperative Banks' in India, consider the fol","description":"The correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect. - Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect. - UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct. - Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/","og_locale":"en_US","og_type":"article","og_title":"With reference to 'Urban Cooperative Banks' in India, consider the fol","og_description":"The correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect. - Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect. - UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct. - Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:07:52+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/","name":"With reference to 'Urban Cooperative Banks' in India, consider the fol","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:07:52+00:00","dateModified":"2025-06-01T11:07:52+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is B. Statements 2 and 3 are correct, while statement 1 is incorrect. - Urban Cooperative Banks (UCBs) are regulated and supervised by both the Reserve Bank of India (RBI) (for banking functions) and the Registrar of Co-operative Societies (RCS) of the concerned State (or Central RCS if multi-state) (for registration and management). They are not solely supervised and regulated by local boards set up by State Governments. Statement 1 is incorrect. - UCBs are permitted to raise capital through various means, including the issue of equity shares to their members and other forms of capital instruments akin to preference shares or long-term deposits with equity features, as per regulations issued by RBI and the Registrar. Recent amendments to the Banking Regulation Act have enhanced their ability to raise capital. Statement 2 is correct. - Certain provisions of the Banking Regulation Act, 1949, were extended to cooperative banks, including UCBs, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This brought their banking operations under the purview of the RBI. Statement 3 is correct.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-urban-cooperative-banks-in-india-consider-the-fol\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to &#8216;Urban Cooperative Banks&#8217; in India, consider the fol"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91853"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91853\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}