Difference between cooperative banks and regional rural banks
Answers
Cooperative banks are those banks which hold deposits, makes loans and provides other financial services to cooperatives and member-owned organizations. It can also be called as Banks for Cooperatives. These banks follow the cooperative principle of one person, one vote as they are owned by their customers. Co-operative banks are regulated by both banking and cooperative legislation.
The Regional Rural Banks are developed keeping in mind the welfare of people in rural areas. It is a banking institution which performs functions similar to commercial organization in rural areas by providing for the purpose of development of Agriculture, Trade, Commerce, Industry and other productive activities. These banks give credit and other facilities, particularly to the small and marginal farmers, Agricultural Laborers, Artisans and small entrepreneurs.