INTRODUCTION TO CO-OPERATIVE
• Cooperative banking institutions takes
DEPOSITS and LEND MONEY in most parts of
• 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.
• 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…)
• 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
FUNCTIONS OF CO-OPERATIVE
• 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.
1. Cooperative banks in India finance rural areas
2. Cooperative banks in India finance urban areas
Small scale units
• 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.
• 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
(Urban and SemiUrban Areas)
Co-operative banks in India
-- Small Scale Units
PRODUCTS AND SERVICES
i.Saving Bank Account
i.Loans to Salaried employees
ii.Home Needs Loan
iii.Loan to Pensioners
iv.Education $ Housing Loan
ii. Safe Deposit Locker
iv. Demand Draft/Pay Order
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
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
• 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.