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Co-operation · Class 12 Commerce

Ch 6Urban Co-operative Bank — Class 12 Co-operation, concept-first.

The people of a town — the small trader with a shop in the market, the tailor and the goldsmith working in a lane, the clerk drawing a modest salary, the auto-driver and the vegetable vendor — all need a place where they can keep their small savings safely and, when the need arises, borrow a reasonable sum on fair term…

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Key concepts

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Dual Regulation of Urban Co-operative Banks

Because a UCB is at once a co-operative society and a bank, it is subject to dual regulation (dual control) by two authorities.

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Chapter contents

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1

Meaning and Definition of an Urban Co-operative Bank

The people of a town — the small trader with a shop in the market, the tailor and the goldsmith working in a lane, the clerk drawing a modest salary, the auto-driver and the vegetable vendor — all nee…

2

Features of an Urban Co-operative Bank

An urban co-operative bank combines the character of a co-operative society with the business of banking, and its features flow from this twin nature. The main features are set out below.

3

Functions of an Urban Co-operative Bank

As a bank, a UCB performs the same broad functions as any bank, which are conveniently grouped into primary (main) functions, secondary (agency) functions and general utility services.

4

Sources of Funds of an Urban Co-operative Bank

A bank can lend only what it can raise. The funds of an urban co-operative bank come from two broad sources — its owned (internal) funds and its borrowed (external) funds — and it is useful to see the…

5

Dual Regulation of Urban Co-operative Banks — RBI and the Registrar

The most distinctive — and the most examined — feature of an urban co-operative bank is that it is regulated by two authorities at the same time, because it is at once a co-operative society and a ban…

6

Role and Importance of Urban Co-operative Banks

Urban co-operative banks occupy a small but valuable place in the country's banking system. Their special role lies in serving the sections of the urban population that the big banks long ignored, and…

Exercises

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  1. Q1An urban co-operative bank is subject to dual regulation. The two authorities that regulate it are: (a) SEBI and the Registrar of Companies…Free
  2. Q2No co-operative society can carry on banking business without a licence from: (a) The Registrar of Co-operative Societies (b) The State Co-o…Free
  3. Q3State whether the following statement is TRUE or FALSE, and justify your answer: "An urban co-operative bank works mainly to finance agricul…Free
  4. Q4Define an urban co-operative bank and state any four of its features.Preview
  5. Q5Explain the primary functions of an urban co-operative bank.Preview
  6. Q6Distinguish between the owned funds and the borrowed funds of an urban co-operative bank.Preview
  7. Q7Explain any four sources of funds of an urban co-operative bank.Preview
  8. Q8Explain the division of control between the Reserve Bank of India and the Registrar of Co-operative Societies over an urban co-operative ban…Preview
  9. Q9Give reasons: An urban co-operative bank is said to be under 'dual control'.Preview
  10. Q10Explain the role (importance) of urban co-operative banks.Preview
  11. Q11How does an urban co-operative bank differ from an ordinary credit co-operative society? Explain any three points.Preview
  12. Q12Fill in the blank and justify: The deposits of members held by an urban co-operative bank are insured up to the prescribed limit by the ____…Preview