UPSC 2021: 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?

Urban Co-operative Banks are not regulated by autonomous State boards; since the 1966 amendment to the Banking Regulation Act, RBI supervises their banking functions, while states look after registration and management, so Statement 1 is wrong. The 2020 amendment permits UCBs to raise capital by issuing equity/preference shares, making Statement 2 correct. Large UCBs were indeed brought under the Banking Regulation Act on 1 March 1966, so Statement 3 is correct. Hence only 2 and 3 are true (option b). ([vajiramandravi.com](https://vajiramandravi.com/upsc-exam/with-reference-to-urban-cooperative-banks-in-india/?utm_source=openai))