Economics · Banking System in India

Cooperative banks are financial entities owned and operated by their members, functioning on the principle of 'one member, one vote'. These institutions play a vital role in providing credit to the agricultural and rural sectors, as well as to small-scale industries and self-employed individuals in urban areas. The structure is traditionally divided into rural and urban segments, each with its own regulatory and organizational hierarchy. Statement I: The rural cooperative credit structure is bifurcated into short-term and long-term structures, with the short-term structure typically being a three-tier system comprising State Cooperative Banks, District Central Cooperative Banks, and Primary Agricultural Credit Societies. Statement II: Following the Banking Regulation (Amendment) Act, 2020, the Reserve Bank of India has been granted powers to oversee the management and audit of Urban Cooperative Banks, bringing them more in line with commercial bank regulations. Statement III: Primary Agricultural Credit Societies (PACS) are directly regulated by the Reserve Bank of India and must maintain a CRAR of 9 percent just like scheduled commercial banks. Considering the above summary and the regulatory framework of cooperatives, which of the provided statements accurately reflects the current status?