2. ‘A Bank is a financial institution that accepts deposits
from the public & creates loans.’
Structure of Banking in India:-
RBI
COMMERCIAL BANK CO-OPERATIVE BANK
3. A co-operative bank is an association of peoples. It is a
financial entity which belongs to it’s members, who are at the
same time the owners and customers of their bank.
Co-operative banks are often created by persons belonging
to the same local or professional community or sharing a
common interest .
Co-operative banks generally provide their members with a
wide range of banking and financial services(loans,
deposits, banking accounts etc).
5. FEATURES OF CO-OPERATIVE BANKS
It is a “customer owned banking” .
It involves autonomous association of person united voluntarily
to meet their common economic, social, cultural needs through a
jointly owned & democratically controlled enterprise.
Co-operative banks are registered under the Co-operative
Societies Act, 1912.
It regulated by the RBI under the Banking Regulation Act, 1949
& Banking Laws (application to co-operative societies) Act, 1965.
They are organized & managed on the principle of co-operation,
self help & mutual help.
The major contribution of these banks are mostly in agriculture
& Rural sector as where they play the most vital role in Rural
financing & Micro financing.
6. Co-operative banks are also do banking business in urban and
metropolitan areas.
Co-operative banks are government supported Financial
agency in India.
In India, co-operative banks are working for nearly 110 years.
Co-operative banks are work on “No Profit & No Loss” Model.
Profit maximization is not their goal.
7. The major function of co-operative banks are:-
a) Mobilization of funds from their members
b) Advance loans to the members ,other needy peoples & farmers in
the rural areas.
The co-operative banks function with the objective of fulfilling the
credit requirements and needs of people living in the Rural as well
as in the Urban areas.
Perform multiple & function at large extent to carryout developments
& regulations in the society that strengthen the co-operative
movements.
It perform all the main Banking functions of Deposits, Mobilization,
supply of credit & provision of remittance facilities.
It provides limited banking products & are functionally specialists in
Agriculture related products.
8. Co-operative banks in India finance Rural areas under:-
I. Farming cattle
II. Milk
III. Personal finance
Co-operative banks in India finance Urban areas under:-
I. Self-employment
II. Industries
III. Small scale units
IV. Home finance
V. Consumer finance
VI. Personal finance
9. Deposits:-
a) Saving bank account
b) Current account
c) Recurring deposits
d) Fixed deposits
Loans:-
a) Loans to salaried
employees
b) Home needs loans
c) Loan to pensioners
d) Education & housing loan
Services :-
clearing
Safe deposits lockers
ATM
Demand draft/ pay order
10. History of CO-OPERATIVE
BANKS
It was the idea of Hermann Schulze(1808-83) and Friedrich
Wilhelm Raiffeisen (1818-88) which took shape as co-operative
bank of today across the world.
In India, towards the end of the 19th century, the problem of
rural indebtedness & the consequent conditions of farmers
created an environment for the chit fund & co-operative
societies they found that it is an attractive mechanism for
pooling their meager resources for solving common problems
relating to credit, supplies of inputs & marketing of agricultural
produce. The experience gained in the working of co-operatives
led to the enactment of Co-operative Credit Societies Act,1912.
After India attained Independence in August, 1947, co-
operatives assumed a great significance in poverty removal &
faster Socio-economic growth.
11. Types of co-
operative
banks in
India
Primary co-
operative banks
Land development
banks
Urban co-operative
banks
Central co-
operative banks
State co-operative
banks
12. • Primary co-operative banks:-These are formed at a village level or town level with
borrower & non-borrower members residing in one locality. Their operations
are restricted to small area.
• central co-operative banks:- These banks are operate at a district level having
some of the primary credit societies belonging to the same district as their
members.
13. • state co-operative banks:- These banks are the apex co-operative banks in all
states of the country. It acts as a ‘Watchdog’ of the co-operative banking
structure in the state.
• land development banks:- These banks are meeting the long-term credit
requirements of the farmers for developmental purposes. They are situates in
the districts & tehsil areas in the state.
• urban co-operative banks(ucb’s):- These banks are refers to primary co-operative
banks located in urban and semi-urban areas. They essentially lend to small
borrowers and businesses.
14. Saraswat bank is an ‘Urban co-operative banking institution’
based in Maharashtra, India and operating as a co-operative
bank since 14 September 1918.
In 1988, the bank was conferred with “Scheduled” status by
RBI. The bank is the first co-operative bank to provide
merchant banking services.
It got a permanent license to deal in Foreign exchange in
1978. It has 283 branches nationwide.
‘Services to the common man ’ has been the motto of
Saraswat bank for the last 99 years.
