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

1. Incorrect. Urban Cooperative Banks are cooperative banks regulated/supervised mainly by the RBI for banking functions, along with cooperative authorities under the respective State/Central cooperative laws. They are not supervised by local boards set up by State Governments.

2. Correct. After recent banking/cooperative sector reforms, Urban Cooperative Banks can raise capital through equity shares, preference shares and special shares subject to conditions.

3. Correct. Cooperative banks, including UCBs, were brought under the Banking Regulation Act, 1949 by an amendment made in 1965, effective from 1 March 1966; UPSC frames this as brought under the Act through the 1966 amendment/effective change.

Therefore, statements 2 and 3 only are correct.