Development Regulation and Supervision of Co-operative Banks
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 84 rapid-fire Q&A cards.
What Act established the legal foundation for cooperative credit expansion in India?
Co-operative Credit Societies Act, 1904.
Which two sections of RBI Act, 1934 empowered agricultural credit delivery?
Section 54 (Agricultural Credit Department) and Section 17 (agricultural credit provision).
Name two major cooperative bank crises exposing governance gaps.
Madhavpura Mercantile Co-operative Bank (2001) and PMC Bank (2019).
What is the three-tier rural cooperative credit structure?
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Primary Agricultural Credit Societies (PACS).
Define 'duality of control' in cooperative banking and its issue.
State Registrar handles incorporation/management; RBI handles banking regulation under BR Act 1949—causing enforcement delays.
Who chaired the committee recommending UCB reforms in 1999?
K. Madhava Rao Committee examined UCB performance and seeded CAMELS, OSS, grading reforms.
What triggered the Off-Site Surveillance System (OSS) for UCBs?
Madhavpura Mercantile Co-operative Bank failure exposed weakness of on-site inspection only.
When was director-related lending completely banned in UCBs?
October 2003; tightened by circular February 5, 2021, also barring surety/guarantor roles.
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