COOPERATIVE BANKS - 15 Mints Seminar Notes

 COOPERATIVE BANKS - 15 Mints Seminar Notes

Cooperative bank is a financial entity that belongs to its members,who are both owners and customers of their bank.

Cooperative banks are often created by people belonging to the same local or professional community who share common interest.

These banks provide wide range of banking and financial services to their members(loans,deposit,bank accounts,etc….)

 

REGISTRATION:

• Registered under cooperative societies act. Functions with the rule of  “One for All,All for One”
  
• Functions on “No profit ,No loss”.
  

 

REGULATION:

• Regulated by Reserve Bank of India.Governed by banking regulation of act 1949 and bank laws.
  
• Cooperative societies operates in 1965.
  

 

STRUCTURES:

• URBAN COOPERATIVE BANKS
  
• RURAL COOPERATIVE BANKS

URBAN COOPERATIVE BANKS:

• Banking activities monitored by RBI.Registration and management activities managed by
• Single state: Registerer of cooperative societies(RCS)
• Multi state: Control registerer of cooperative societies(CRCS)

 

URBAN COOPERATIVE BANK TYPES:
SCHEDULED:
Multi-state
Single-state
NON-SCHEDULED:
Multi-state
Single-state
 

RURAL COOPERATIVE BANKS:

• Banking activities monitored by RBI and NABARD. Management of registration activities managed by Registerer of cooperative societies (RCS)

 

RURAL COOPERATIVE BANK TYPES:
SHORT TERM STRUCTURE:

• Primary Agriculture cooperative banks
• District central cooperative banks
• State cooperative banks

LONG TERM STRUCTURE:

• SCARDS 
• PSCARDBS

Primary Agriculture cooperative banks:

• Works at village / town level
• Operations are restricted to small area

 

District central cooperative banks:

• Works at district level
• Have primary agriculture cooperative bank as a member
• Linkage between Primary Agriculture cooperative banks and state cooperative banks.

 

State cooperative banks:

• Registered as cooperative societies. Can operate in different states.
• Under provisions of
• Single-state: State cooperative societies act of state concerned
• Multi-state: Societies act 2002.

 

SCARDS:

• State cooperative Agriculture and Rural development banks. Operates at state level.

 

PSCARDBS:

• Primary cooperative Agricultural and rural development banks. Operates at districts /block level.
  

Presented by

Subashini

Banking Student

Magme School of Banking