Q. With reference to Urban Cooperative Banks (UCBs), consider the following statements:
1.Urban Cooperative Banks can issue equity shares and preference shares to raise capital with the prior approval of the Reserve Bank of India (RBI).
2.The managerial aspects of Urban Cooperative Banks are regulated exclusively by the Reserve Bank of India (RBI).
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Statement 1 is Correct: UCBs are permitted to issue equity shares and preference shares to raise capital, subject to prior RBI approval and regulatory guidelines.
- Statement 2 is Incorrect: While the RBI regulates banking operations, the managerial aspects are overseen by the Registrar of Cooperative Societies (RCS)/Central Registrar of Cooperative Societies (CRCS).
Source- TH
