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co-operative bank

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co-operative bank

  2. 2. INTRODUCTION TO CO-OPERATIVE BANK • Cooperative banking institutions takes DEPOSITS and LEND MONEY in most parts of the world. • It differs from STOCKHOLDERS BANK. • Follows all PRUDENTIAL banking regulation. • It provides FINANCIAL ASSISTANCES to the people with small means to protect them from the debt trap of the money lenders.
  3. 3. • It’s a financial entity which belongs to its members, who are at the same time the OWNERS and the MEMEBERS of the bank. • Its often created by person belonging to the same local or personal community or sharing a common interest. • Wide range of banking and financial services ( loans, deposits, and banking accounts etc…)
  4. 4. DEFINATION.. • A co-operative bank is a financial entity which belongs to its members, who areat the same time the owners and the 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)
  5. 5. FUNCTIONS OF CO-OPERATIVE BANK • Co-operative Banks are organised and managed on the principal of co-operation, self-help, and mutual help. They work on the basis of “no profit no loss”. Profit maximization is not their goal. • Co-operative bank do banking business mainly in the agriculture and rural sector. However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan areas also.
  6. 6. Finance Function: 1. Cooperative banks in India finance rural areas under:  Farming Cattle  Milk  Personal finance 2. Cooperative banks in India finance urban areas under: Self-employment  Industries Small scale units  Home finance Consumer finance Personal finance
  7. 7. Advantages and disadvantages       aim management Area network Interest rate Services Trading limits /financing limits
  9. 9. • The State Co-operative Banks (SCBs), Central Cooperative Banks (CCBs) and Urban Co-operative Banks(UCBs) can normally extend housing loans up to Rs 1lakh to an individual. The scheduled UCBs, however, can lend up to Rs 3 lakh for housing purposes. The UCB scan provide advances against shares and debentures.
  10. 10. • To support the financial requirement of people • Co-operative banks are categorized at various dimensions and at various levels • Co-operative banking structure consists of two main segment:(a)Agricultural Credit (b)Non-Agricultural Credit
  11. 11. Agricultural Short and medium term credit PACS CCB SCB (BASE LEVEL) (DISTRICT LEVEL) (APEX LEVEL) Sector (Rural areas) CLDB Long term credit LDB PLDB
  12. 12. Non-Agricultural Sector (Urban and SemiUrban Areas) Urban Co-operative Banks
  13. 13. Co-operative banks in India FINANCE…. Rural Areas --Farming --Cattle --Milk --Hatchery --Personal finance Urban Areas -- Small Scale Units --Industries --Home finance --Self Employment --Personal finance
  14. 14. PRODUCTS AND SERVICES • DEPOSITS i.Saving Bank Account ii.Current Account iii.Recurring Deposits iv.Fixed Deposits v.Cash Certificate •LOANS i.Loans to Salaried employees ii.Home Needs Loan iii.Loan to Pensioners iv.Education $ Housing Loan . SERVICES i. Clearing ii. Safe Deposit Locker iii. ATM iv. Demand Draft/Pay Order
  15. 15. Co-operative principles Voluntary and open membership Democratic member control Member economic participation Autonomy and independence Education, training and information Co-operation among Co-operatives Concern for Community
  16. 16. Customer-owned entities  In a co-operative bank, the needs of the customers meet the needs of the owners, as co-operative bank members are both. • Democratic member control Co-operative banks follow the principle of “one person, one vote. • profit allocation Profit is usually allocated to members which is related to the number of shares subscribed by each member. • limited banking Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products.