RRBs & Co-operative — Set 4
Banking · RRB और सहकारी बैंक · Questions 31–40 of 60
Which of the following is true about the management of an RRB?
Correct Answer: D. It is managed by a Board of Directors representing the three shareholders
The Board of Directors includes nominees from the Central Government, State Government, and the Sponsor Bank. This ensures that the interests of all stakeholders are represented in decision-making. The Chairman is usually an officer from the Sponsor Bank.
Urban Co-operative Banks are categorized into 'Tiers' for regulatory purposes based on?
Correct Answer: C. Total Deposits
The RBI categorizes UCBs into four tiers based on the size of their deposits. Tier 1 includes smaller banks, while Tier 4 includes those with very large deposit bases. Regulatory requirements like capital adequacy are stricter for higher tiers.
In which year was the 'National Federation of State Co-operative Banks' (NAFSCOB) established?
Correct Answer: B. 1964
NAFSCOB was established in May 1964. It was created to provide a common forum for the state co-operative banks. It helps in coordinating policy and promoting the interests of the co-operative credit movement.
The phrase 'Co-operation is a state subject' implies that PACS are primary governed by?
Correct Answer: D. State Government laws
Under the Constitution, co-operative societies fall under the State List. This means each state has its own legislation governing their formation and administration. This is why co-operative rules can vary from one state to another.
Which of the following is a 'Scheduled' Co-operative Bank?
Correct Answer: D. A bank included in the 2nd schedule of RBI Act
A scheduled co-operative bank must meet certain criteria regarding its paid-up capital and reserves. Large urban co-operative banks are often granted 'scheduled' status. This status allows them better access to the money market.
The Reserve Bank of India (RBI) got full regulatory powers over co-operative banks in which year?
Correct Answer: A. 2020
The Banking Regulation (Amendment) Act of 2020 brought co-operative banks almost on par with commercial banks regarding RBI's powers. Previously, RBI had limited control over their governance. This change was prompted by several failures in the co-operative sector.
Regional Rural Banks were initially known as?
Correct Answer: A. Gramin Banks
RRBs are popularly called 'Gramin Banks' because of their focus on village-level banking. Most RRBs include the word 'Gramin' in their official name. They are designed to act as institutional replacements for local moneylenders.
The 'SARFAESI Act' was extended to co-operative banks to help with?
Correct Answer: B. Recovery of bad loans
The correct answer is 'Recovery of bad loans'. The SARFAESI Act allows banks to recover their dues by selling secured assets without court intervention. Extending this to co-operative banks helped them tackle high NPA levels. The Supreme Court upheld this extension in a landmark judgment in 2020.
What is the maximum number of states a 'Multi-State Co-operative Bank' can operate in?
Correct Answer: A. More than one
Multi-State co-operative societies operate in more than one state. They are registered under the central Multi-State Co-operative Societies Act. This allows them to have a wider geographic presence compared to state-level societies.
The primary source of funds for Regional Rural Banks is?
Correct Answer: A. Deposits from rural households and refinance from NABARD
RRBs mobilize savings from the rural public through various deposit schemes. They also rely heavily on refinance from their Sponsor Bank and NABARD. Unlike commercial banks, they cannot raise capital from the public easily.