Q. Consider the following statements regarding cooperative banks:
1.Co-operative banks have a three-tier structure of banking system.
2.At present District cooperative banks are supervised by RBI.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Explanation: Co-operative banks have a three-tier structure—

  1. Primary Credit Societies-PCSs (agriculture or urban),
  2. District Central Co-Operative Banks-DCCBs, and
  3. State Co-Operative Banks-SCBc (at the apex level).

DCCBs & SCBs: As their names suggest, they operate at the district and state levels. One district can have no more than one DCCB with a number of DCCBs reporting to the SCB.

They were under supervision of the RBI—later on this function was delegated to the NABARD.

Source: TMH Ramesh Singh