Consider the following statements regarding cooperative banking in Haryana: 1. District Central Cooperative Banks (DCCBs) intermediate between the apex state cooperative bank and village-level societies. 2. DCCBs are completely exempt from Reserve Bank of India banking regulations and statutory reserve requirements. Which of the statements given above is/are correct?

💡 Solution & Explanation

District Central Cooperative Banks operate as the middle tier in the three-tier cooperative credit structure, connecting HARCO Bank with primary societies, but they are fully subject to regulatory oversight and licensing by the Reserve Bank of India under the Banking Regulation Act, 1949. Statutory reserve requirements like CRR and SLR apply to cooperative banks as well to maintain systemic stability. Cooperative governance reforms aim to enhance professional management and reduce non-performing assets in DCCBs.