A co-operative bank in India, is registered under the States___________ Act.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Cooperative Societies
A cooperative bank is a small-sized, financial entity, where its members are the owners and customers of the Bank.
- They are regulated by the Reserve Bank of India (RBI) and are registered under the States Cooperative Societies Act.
- They are also regulated by the RBI and governed by the Banking Regulations Act, of 1949, and the Banking Laws (Co-operative Societies) Act, of 1955.
- Cooperative banks lend as well as accept deposits.
- To support the financial needs of a community such as a village or a specific community, people come together to pool resources and provide banking services such as loans, savings accounts, etc.