With reference to Urban Cooperative Banks' in India, consider the following statements : 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

1. Statement 1 is incorrect. Urban Cooperative Banks (UCBs) in India are subject to dual regulation. Banking functions (like capital adequacy, risk control, lending norms) are regulated by the Reserve Bank of India (RBI), while management aspects (like incorporation, registration, administration) are regulated by the respective State Governments through the Registrar of Cooperative Societies. They are not solely supervised by local boards set up by State Governments. 2. Statement 2 is correct. UCBs have traditionally been allowed to issue equity shares to their members. Furthermore, the Banking Regulation (Amendment) Act, 2020, enabled UCBs to issue preference shares and other non-equity instruments like debentures, subject to prior approval from the RBI. 3. Statement 3 is correct. Cooperative banks, including UCBs, were brought under the purview of the Banking Regulation Act, 1949, through the Banking Laws (Application to Co-operative Societies) Act, 1965, which came into effect on March 1, 1966. This extended RBI's regulatory powers over them. Therefore, statements 2 and 3 are correct.