The Co operative banks in India started functioning almost 100 years
ago. The Cooperative bank is an important constituent of the Indian
Financial System, judging by the role assigned to co operative, the
expectations the co operative is supposed to fulfil, their number, and
the number of offices the cooperative bank operate. Though the co
operative movement originated in the West, but the importance of such
banks have assumed in India is rarely paralleled anywhere else in the
world. The cooperative banks in India plays an important role even today
in rural financing. The businessess of cooperative bank in the urban
areas also has increased phenomenally in recent years due to the sharp
increase in the number of primary co-operative banks.
Co operative Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by the RBI. They
are governed by the Banking Regulations Act 1949 and Banking Laws
(Co-operative Societies) Act, 1965.
Cooperative banks in India finance rural areas under:
- Farming
- Cattle
- Milk
- Hatchery
- Personal finance
Cooperative banks in India finance urban areas under:
- Self-employment
- Industries
- Small scale units
- Home finance
- Consumer finance
- Personal finance
Some facts about Cooperative banks in India
- Some cooperative banks in India are more forward than many of the
state and private sector banks.
- According to NAFCUB the total deposits & lendings of
Cooperative Banks in India is much more than Old Private Sector
Banks & also the New Private Sector Banks.
- This exponential growth of Co operative Banks in India is
attributed mainly to their much better local reach, personal
interaction with customers, their ability to catch the nerve of the
local clientele.
