With reference to 'Urban Cooperative banks' in India consider the following statements:1.They are supervised and regulated by local boards set up by the State Governments.2.They can issue equity shares and preference shares.3.They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.Which of the statements given above is/are correct?

1. A

   1 only

   1 only. UCBs are under RBI (and RCS), not ‘local boards of State Governments’ as the sole supervisor.

2. B

   2 and 3 only

   2 and 3 only. They can issue equity/preference as allowed; BR Act cover came in 1966. Statement 1 overstates State boards.

3. C

   1 and 3 only

   1 and 3 only. Statement 1 fails.

4. D

   1, 2 and 3

   All three. Dual regulation is RBI + registrar, not local State boards as framed.

Summary. Official key is (b) 2 and 3 only. Urban cooperative banks were brought under the Banking Regulation Act in 1966 and can issue shares as the law now allows. Day-to-day banking supervision is RBI’s, not a State local-board monopoly.