CO-OPERATIVE BANKING IN INDIA

CO-OPERATIVE BANKING IN INDIA

History of Co-operative banks in India is almost 100 years old . The Cooperative bank is an important element 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 vital role even today in rural and urban financing. The business 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 1965. 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. The co-operative banks are running under the dual regulatory authorities.

Finance area under the Cooperative banks in India: 

Rural areas:

• Farming 

• Cattle 

• Milk 

• Hatchery 

• Personal finance

Finance area under the Cooperative banks in India: 

Urban areas: 

• Self-employment 

• Industries (Term Loans and Working Capital)

• Small scale units 

• Home finance 

• Consumer finance 

• Personal finance

Salient features of Cooperative banks in India 

• Few co-operative banks in India are doing very well other than many of the state and private sector banks..

 • According to recent report the total deposits & lendings of Cooperative Banks in India is much more than Private Sector Banks & 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.

 • Many co-operative bank have good reputation and good cliental .

 • A lot of co-operative banks are scheduled bank and doing very well.

 • Cosmos Bank and Saraswat Bank are the ICON of the co-operative banking sector.