Q. With reference to the co-operative banks, consider the following statements:
1.Co-operative banks are owned by customers, while commercial banks are owned by shareholders.
2.There are three types of co-operative banks in India.
3.The Reserve Bank of India (RBI) is responsible for the supervision of urban co-operative banks in India.
How many of the statements given above are correct?
Answer: B
Notes:
Explanations –
Statements 1 and 3 are correct. Co-operative banks are owned and managed by their members, who are also their customers, operating on a democratic principle of “one member, one vote.” In contrast, commercial banks are owned by shareholders and operate with the primary goal of maximizing profits. The RBI regulates and supervises urban co-operative banks (UCBs) under the Banking Regulation Act, 1949. Rural co-operative banks, however, are jointly regulated by the RBI and state governments.
Statement 2 is incorrect. In India, co-operative banks can broadly be categorized into two types:
- Urban Co-operative Banks (UCBs):Operate in urban and semi-urban areas.
- Rural Co-operative Banks:Further divided into short-term (e.g., Primary Agricultural Credit Societies, District Central Cooperative Banks) and long-term structures (e.g., State Cooperative Agriculture and Rural Development Banks).
Source: The Hindu
