Module E
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What primarily distinguishes an Urban Co-operative Bank (UCB) from a commercial bank in India?
UCBs are member-owned cooperative societies operating on democratic principles, while commercial banks are investor-owned companies focused on profit maximisation.
Under RBI's four-tier framework, which tier includes all unit UCBs and salary earners' UCBs regardless of deposit size?
Tier 1 includes all unit UCBs and salary earners' UCBs irrespective of deposit size.
Under which dual regulatory framework do Urban Co-operative Banks operate in India?
UCBs are regulated by both the Reserve Bank of India (RBI) for banking operations and state registrars of cooperative societies for administrative matters.
What is the minimum CRAR requirement for Tier 1 Urban Co-operative Banks under RBI's revised framework?
Tier 1 UCBs must maintain a minimum CRAR of 9 percent.
What governance principle distinguishes voting rights in Urban Co-operative Banks from those in commercial banks?
UCBs follow the democratic 'one member, one vote' principle regardless of the number of shares held, unlike commercial banks where voting power is proportional to shareholding.
What minimum CRAR must Tier 2, 3, and 4 Urban Co-operative Banks maintain under RBI's framework?
Tier 2 to 4 UCBs must maintain a minimum CRAR of 12 percent of RWAs.
What is the primary objective of Urban Co-operative Banks in terms of clientele served?
UCBs primarily serve the urban and semi-urban middle and lower-income segments, including small businesses, artisans, and salaried employees who may have limited access to commercial banking.
What is the maximum glide path period given to a UCB transitioning to a higher regulatory tier?
A UCB gets a maximum glide path of up to three years.
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