Difference between cooperative bank and indigenous bank?
Answers
Answer:
Cooperative banking is like a community where people having common in interest forms like a group and it is called as society.than they will tieup with any one bank to manage their funds.
Ex.Fisher man societies ,milk societies
Indigenous banking also similar to this but here main motto is lending only not taking deposits from outsiders but this is changing with time now they are also performing whatever duties commercial doing as a bank.These banks are majorly situated at urban areas.
Incooperative banks mainly there are two types urban coop banks and other coop banks like state coop banks,district coop banks,land development coop banks.Urban coop banks are little or more similar to indigenous banks.
But there is another system (three tyre system)
1.State co.op banks(state level)
2.Dccbs (district level)
3.PACS(Village level)
Normally farmers will be members of these PACS(Primary Agriculture co.op Societies)and DCCBS are maintaining their funds along with normal banking operations.State coopbanks,state govt.,NABARAD,RBI were controlling bodies of DCCB.There is minimum share of govt in.Dccbs to maintain govt.authority over DCCBS.
In india before nationalisation of banks rural areas credit will be done mostly by coop banks.After commercial banks and rrbs were expanded into remote areas and giving loans liberally to farmers some how they have lost their market.Because of limited funds and multi authorities(Outsiders like PACS chairman) co.op banking is unable to show their progress.