Consider the following Statements.

(I) Co-operative banks in India are registered under the State’s Cooperative Societies Act.

(II) Regulation of Cooperative banks is a part of Banking Regulations Act 1949.

(III) Cooperative Banks have a single-tier system in India.

which of the following statements is/are correct?

Solution

A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks in India are registered under the States Cooperative Societies Act. The Co-operative banks are also regulated by the Reserve Bank of India (RBI) and governed by the Banking Regulations Act 1949 Banking Laws (Co-operative Societies) Act, 1955. The rural co-operative credit system in India is primarily mandated to ensure flow of credit to the agriculture sector. It comprises short-term and long-term co-operative credit structures. The short-term co-operative credit structure operates with a three-tier system - Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level.