Practice Questions

The initial efforts to create a Co-operative Flag started in 1896. Other options are either too early (1895) or later dates when the flag was already under discussion or approved.

By co-operative regulations, 10% of net profit (capped at ₹11 lakh) is allocated to the Member Relief Fund.

Certain co-operative societies, like Vanitha (women) co-operative societies, are given 50% exemption on audit fees as an encouragement to promote women’s participation in co-operative activities.

All co-operative societies of which all or a majority of members belong to SC/ST

Due by” refers to amounts payable or liability by the society or entity.

Audit fees are generally calculated based on sale proceeds of societies dealing in goods, as it reflects the scale of operations.

A transaction is any economic event that affects the financial position of a business and is recorded in the accounts.

Co-operative audit is not only for checking financial correctness but also to review administrative efficiency and compliance, making it both statutory and administrative.

The general body  of the concerned co-operative society is the authority responsible for appointing the statutory auditor. This appointment is made from a panel of auditors or auditing firms approved by the Director of Co-operative Audit or the Registrar of Co-operative Societies, depending on the specific state's Co-operative Societies Act and Rules. The managing committee is generally responsible for convening the meeting to make this appointment, but the final appointing authority rests with the members in the general meeting.

RBI-appointed administrator can continue up to 5 years.

The Banking Regulation (Co-operative Societies) Act, 1965 (BR Act) specifies that if a chairman is removed from office, they are barred from holding any position of chairman or director in any co-operative bank for four years from the date of removal. This restriction is meant to ensure proper governance and prevent misuse of authority.

RBI approval is required for appointment, re-appointment, and removal of auditors of co-operative banks.

Before re-appointing an auditor) Before appointing an auditor

Cross selling is offering additional products to an existing customer.

Selling other products to existing customers

Customization refers to modifying products/services according to individual customer needs.

FMC (Forward Markets Commission) was merged with SEBI in 2015 and no longer exists as a separate regulator.

The BR Act mainly protects depositors and ensures sound banking, not borrower interests

To develop banking institutions on sound lines

To attune the monetary and credit system to national priorities

A holder in due course gets a better title and can sue in his own name.A Holder in Due Course (HDC) is someone who acquires a negotiable instrument (like a check, promissory note) in good faith, for value (consideration), and without notice of any defects in the title before it's overdue, giving them superior legal rights to enforce payment, even if there are issues with the original transaction. They are essentially protected from hidden claims, meaning they can demand payment from the issuer and prior parties regardless of past problems, unlike a regular "holder

Cannot sue  on the instrument in his own name

Can sue on the instrument in his own name

Can sue  only if permitted by the competent  court of law

Can sue on the instrument if  permistted by the payee

A promissory note must contain an unconditional promise to pay, not a conditional one.

As per RBI KYC norms:

High risk – every 2 years

Medium risk – every 8 years

Low risk – every 10 year

SARFAESI Act applies only if the outstanding amount is ₹1 lakh or more and the account is classified as NPA.

Under PMLA, banks must preserve transaction records for 5 years from the date of cessation.

No law prescribes a standard cheque format; the NI Act only specifies essential features

Wrongful dishonor harms the reputation of the drawer, so the bank is liable to the drawer.

Mortgage is defined under Section 58 of the Transfer of Property Act, 1882.

As per RBI norms, exposure to a single borrower is restricted to 15% of Tier-1 capital.

Loans against life insurance policies are secured by assignment of the policy in favour of the bank.

Dr. Chandra Pal Singh Yadav is the President of the ICA Asia-Pacific regional organization.

Jeroen Douglas is the Director General of ICA and heads its Secretariat.

Ariel Guarco serves as the President of the International Cooperative Alliance.

The Global Co-operative Marq was launched by ICA in 2013 to provide a common global brand identity for cooperatives.

The Cooperative Identity was formulated at the ICA Manchester Congress in 1995.

ICA Bulletin is the official quarterly journal of the International Cooperative Alliance

The General Assembly is the supreme decision-making authority of ICA.

Associate and Sectoral members can participate but do not have voting rights.

Only Member organizations enjoy full voting and participatory rights within ICA.

ICA Global 300 ranks the world’s largest cooperative enterprises and was launched in 2006.

The World Co-operative Monitor is ICA’s first major global data project on cooperatives.

ICA officially relocated its headquarters from Geneva to Brussels in 2013.

Before shifting to Geneva in 1982, ICA was headquartered in London.

ICA represents, supports, and provides a platform for cooperatives worldwide.

Provide a global voice and forum for cooperatives

ICA was founded in 1895, so its 130th anniversary was celebrated in 2025.

ICA is a global federation comprising both national and international cooperative organizations.

Both international and national cooperatives

The Director is responsible for leading and managing the ICA Secretariat.

The ICA Governing Board is composed of 20 elected members.

ICA regulations limit representation from a single country to a maximum of 25 delegates.

ICA was among the first three non-governmental organizations granted consultative status by the United Nations.

In 2017, Adhitya Yadav became the youngest Indian to be elected to the ICA Board.

V. T. Krishnamacharya was the first Indian to address the ICA Assembly, representing India at the international cooperative level.

Ram das Pandalu  was the first Indian on ICA’s Executive body.

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