Q.Give reasons: An urban co-operative bank is said to be under 'dual control'.

The phrase 'dual control' describes a real feature of a UCB, not a figure of speech.

It is true that an urban co-operative bank is said to be under 'dual control', and the reasons follow directly from what it is:

1. It is a co-operative society. A UCB is registered under the co-operative law, so — like any co-operative — its registration, bye-laws, membership, elections, managing committee, audit and winding-up fall under the Registrar of Co-operative Societies.
2. It is also a bank. At the same time it carries on banking business, so — like any bank — its licence, cash reserves (CRR and SLR), lending and interest rules, and inspection fall under the Reserve Bank of India.
3. Two natures, two regulators. Because the two natures exist together in one institution, two authorities control it at the same time — one for the co-operative side and one for the banking side. This simultaneous control by the Registrar and the RBI is exactly what 'dual control' means. …

A 'give reasons' answer must state the reasons, not merely repeat that dual control exists. Anchor the reasons i …