Regulation and Supervision of Urban Cooperative Banks Quiz

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Questions and Answers

What is the primary focus of the document 'Primer on Regulation and Supervision of Urban Cooperative Banks'?

  • Regulation and supervision of urban cooperative banks (correct)
  • The history of cooperative banking in urban areas
  • The financial performance of urban cooperative banks
  • The challenges faced by urban cooperative banks

What is the significance of 'Dual control' as mentioned in the document?

  • It highlights the collaboration between urban cooperative banks and commercial banks
  • It refers to the presence of multiple regulatory bodies overseeing urban cooperative banks
  • It emphasizes the joint responsibility of the government and the central bank in regulating urban cooperative banks (correct)
  • It denotes the internal checks and balances within urban cooperative banks

Which section of the document provides information about statutory provisions related to urban cooperative banks?

  • Section 5 (correct)
  • Section 4
  • Section 2
  • Section 8

What is the main focus of the 'Department of Regulation (DoR)' as mentioned in the document?

<p>Taking initiatives to strengthen the regulatory framework for urban cooperative banks (B)</p> Signup and view all the answers

What does the document emphasize as a key aspect of supervision for urban cooperative banks?

<p>Safeguarding the interests of depositors in urban cooperative banks (B)</p> Signup and view all the answers

In which section of the document would one find information about the structure of the cooperative banking sector?

<p>Section 2 (C)</p> Signup and view all the answers

What is the primary challenge faced by banking regulators/supervisors in the aftermath of recent bank failures?

<p>Balancing financial stability and addressing moral hazard implications (B)</p> Signup and view all the answers

What is the role of co-operative banks in the Indian financial system?

<p>Furthering financial inclusion by providing general banking services in underserved areas (A)</p> Signup and view all the answers

What are some of the challenges faced by co-operative banks in India?

<p>Ownership structure and rising incidence of frauds (B)</p> Signup and view all the answers

What has constrained the mobilization of additional capital for co-operative banks in India?

<p>Ownership structure and constitutional provisions (D)</p> Signup and view all the answers

What has the amendment to the Banking Regulation Act, 2020 eased for Urban Co-operative Banks (UCBs)?

<p>Capital raising constraints of UCBs (C)</p> Signup and view all the answers

Under which act are State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) registered and regulated?

<p>State Cooperative Societies Act of the concerned state (D)</p> Signup and view all the answers

Which cooperative credit structures operate primarily to ensure the flow of credit to the agriculture sector in rural areas?

<p>Primary Agricultural Credit Societies (PACS) (A)</p> Signup and view all the answers

Which cooperative banks are outside the purview of the Banking Regulation Act, 1949 and are not regulated by RBI?

<p>(PACS) at the village level (D)</p> Signup and view all the answers

Which entity has been delegated powers under Section 35(6) of the Banking Regulation Act to conduct inspections of State and Central Cooperative Banks?

<p>(NABARD) (A)</p> Signup and view all the answers

"The guiding behind this framework is to consolidate their position as friendly neighbourhood banks by catering to the heterogeneity in the customer base" - Which cooperative banks does this statement refer to?

<p>(UCBs) (D)</p> Signup and view all the answers

"RBI has been initiating reforms to strengthen the cooperative banking structure. Its two-pronged strategy consists of statutory reforms and regulatory support." - What does the two-pronged strategy aim to achieve?

<p>Strengthening the cooperative banking structure (A)</p> Signup and view all the answers

What entities are primarily mandated to ensure the flow of credit to the agriculture sector?

<p>Primary Agricultural Credit Societies (PACS) (A)</p> Signup and view all the answers

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