What is Cooperative Bank ?

Cooperative banks involve the self-government association of members’ unity to meet their common economy on a cooperative basis. Cooperative banks are owned with the aid of their clients and comply with the cooperative principle of one individual, one vote

The formation of cooperative bank is on the principle of mutual help, democratic decision making by getting an open membership Cooperative banking, as discussed here, includes retail banking carried out by credit unions, mutual savings banks, building societies and cooperatives, as well as commercial banking services provided by mutual organisations (such as cooperative federations) to cooperative businesses. Their features are as follows.

  • These banks operate and organize on principle of mutual help
  • These banks are easy to serve in the rural and urban areas: to small industry and workers
  • These banks are regulated under the Cooperative Societies Act, 1912

There are also 5 types of cooperative banks in India:

  • Primary Urban Co-op Banks
  • Primary Agriculture Credit Societies
  • District Central Co-Op Banks
  • State Co-Op Banks
  • Land Co-Op Banks