Question

Q. With reference to the Cooperative Banks in India, which of the following statements is/are correct?

Select the correct answer using the codes given below:

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 1 and 2 only

Explanation:

Statement 1 is correct: These banks are organised under the state government’s act in case of cooperative operating in one state but if they are operating in multi-state then by the Central Registrar of Cooperative Societies. They are subject to dual control by the RBI and respective State Registrar of Cooperative Societies/Central Registrar of Cooperative Societies. They give short term loans to the agriculture sector and other allied activities. They also provide medium-term and long term loans.

Statement 2 is correct: The main goal of Cooperative Banks is to promote social welfare by providing concessional loans.

Statement 3 is incorrect: Concessional CRR, SLR is applicable to these banks. (CRR- 3%, SLR- 25%).