All banks registered under the ___________ are considered co-operative banks.

a. Banking Regulation Act 1949

b. The Bankers’ Books Evidence Act–1891

c. Cooperative Societies Act, 1912

d. Both (A) and (C)

ANSWER: Cooperative Societies Act, 1912

Explanation:

All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.

These are banks run by an elected managing committee with provisions of members’ rights and a set of “communally developed and approved bylaws and amendments”.

Co-operative banks work on a “no profit, no loss” basis.

The cooperative banks are regulated by Reserve Bank of India (RBI).

These banks have a three-tier structure -

Primary (agriculture or urban) credit societies

District central co-operative banks

State co-operative banks (at apex level).