Q. With reference to cooperative banks in India, consider the following statements:

1. They are established by the State laws.
2. They can lend as well as accept deposits.
3. They are solely regulated by the Reserve Bank of India and not by any other authority.

Which of the above statements is / are correct?
Answer: 1 and 2
Notes: Cooperative banks are established under State Cooperative Societies Acts and are governed by state laws, but also guided by certain central acts. They can both accept deposits and lend. Regulation is shared: while RBI does regulate them, state governments also play a role in their supervision. Therefore, only statements 1 and 2 are correct.