CO-OPERATIVE BANKS
• It is an institution established on the basis of cooperative principles and dealing in ordinary banking business with ‘No Profit No Loss Basis’.
• These banks are controlled, owned, managed and operated by cooperative societies and came into existence under the Cooperative Societies Act in 1912.
• These banks are located in the urban as well in the rural areas. Although these banks have the same functions as the commercial banks, but their rate of interest is low in comparison to other banks.
• At present, there are 170 scheduled commercial banks in the country, which includes 91 Regional Rural Banks (RRBs), 19 Nationalized Banks, 8 Banks in State Bank of India Group and the Industrial Development Bank of India Limited (IDBI Ltd).
• These banks are controlled, owned, managed and operated by cooperative societies and came into existence under the Cooperative Societies Act in 1912.
• These banks are located in the urban as well in the rural areas. Although these banks have the same functions as the commercial banks, but their rate of interest is low in comparison to other banks.
• At present, there are 170 scheduled commercial banks in the country, which includes 91 Regional Rural Banks (RRBs), 19 Nationalized Banks, 8 Banks in State Bank of India Group and the Industrial Development Bank of India Limited (IDBI Ltd).
There are three types of cooperative banks in India, namely
• Primary Credit Societies: These are formed in small locality like a small town or a village. The members using this bank usually know each other and the chances of committing fraud are minimal.
• Central Cooperative Banks: These banks have their members who belong to the same district. They function as other commercial banks and provide loans to their members. They act as a link between the state cooperative banks and the primary credit societies.
• State Cooperative Banks: these banks have a presence in all the states of the country and have their presence throughout the state.
• Primary Credit Societies: These are formed in small locality like a small town or a village. The members using this bank usually know each other and the chances of committing fraud are minimal.
• Central Cooperative Banks: These banks have their members who belong to the same district. They function as other commercial banks and provide loans to their members. They act as a link between the state cooperative banks and the primary credit societies.
• State Cooperative Banks: these banks have a presence in all the states of the country and have their presence throughout the state.
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