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.
There are also 5 types of cooperative banks in India: