Regulations and Amendments in Cooperative Banking

The video discusses the stress in the banking sector and the government's response through amendments to the Banking Regulation Act. It highlights the 2018 ordinance aimed at strengthening cooperative banks and enhancing RBI's powers over them. The video explains the differences between commercial and cooperative banks, the need for regulatory changes, and the impact of these changes. It also covers RBI's new empowerment to implement revival plans without imposing a moratorium, ensuring financial stability.

What is the main reason for the stress in the banking and financial sector?

• Internal mismanagement

• Global economic downturn

• Government policies

• High inflation rates

What method did the government use to bring the amendment to the Banking Regulation Act?

• Public referendum

• Legislative bill

• Executive order

• Ordinance

Which act regulates cooperative banks along with the Banking Regulation Act?

• Reserve Bank of India Act 1934

• Companies Act 1956

• Financial Institutions Act 1980

• Cooperative Societies Act 1965

What is the primary difference between commercial banks and cooperative banks?

• Commercial banks offer higher interest rates than cooperative banks.

• Commercial banks are regulated by state governments, while cooperative banks are regulated by the central government.

• Commercial banks are only found in urban areas, while cooperative banks are only in rural areas.

• Commercial banks are larger and profit-oriented, while cooperative banks are smaller and service-oriented.

What new requirement is introduced for the recruitment in cooperative bank management?

• Candidates must meet certain qualifications.

• Candidates must be members of the cooperative society.

• Candidates must have a minimum of 10 years of experience.

• Candidates must be approved by the state government.

Who must approve the appointment of a CEO in a cooperative bank under the new amendment?

• Board of directors

• RBI

• Central government

• State government

What power does the central bank have over the board of cooperative banks under the new amendment?

• The central bank can dissolve the board.

• The central bank can audit the board's activities.

• The central bank can supersede the board's decisions.

• The central bank can appoint new board members.

What is the purpose of allowing cooperative banks to raise money through public issues?

• To comply with new regulations

• To expand their operations

• To improve their liquidity and prevent them from failing

• To increase their market share

What change has been made to the bank deposit insurance in the recent budget?

• It has been reduced to 50,000

• It has been increased to 5 lakh

• It has been kept the same

• It has been removed

What is the main goal of the amendments to the Banking Regulation Act?

• To increase the number of banks

• To increase the profits of commercial banks

• To protect the interests of depositors and strengthen cooperative banks

• To reduce the number of cooperative banks