Topic : Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Can the persistent scope of Reserve Bank of India’s oversight overhaul the effective functioning of cooperative banks? Analyse. (250 words)
Reference: financial express
Why the question:
The article explains in what way expanded RBI oversight can change cooperative banking sector.
Key Demand of the question:
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Explain the recent steps taken by the government with respect to cooperative banks.
The recent ordinance relating to cooperative banks, barring those which lend to farmers has brought in a certain amount of euphoria. The ordinance gives regulatory oversight of these banks, essentially urban cooperative banks and multi-state cooperative banks, a push by putting in place a stronger RBI supervisory structure for them.
Take hints from the article and explain how the new changes can benefit the cooperatives.
Conclude with way forward.