How are cooperative banks serving common people?
Answers
Cooperative banks are mainly formed
for development of people and community. The public and private sector
banks are set up for different purpose. They are for improvement in economy and
to allow flow of funds through the system. Cooperative banks are also governed
by the Reserve Bank of India like the other banks.
Serving Common People:
Cooperative banks allow the banking services like savings deposit, term deposit, bank draft, loans, housing loans, shares, dividends, transfer of money from one bank account to another, personal cheques etc. They give employment. They help circulation of money. They help in management of economy by the government.
Importance:
Cooperative banks are mainly customer owned. They are owned by the
set or people or community forming that bank. These are managed in a democratic
way. All members have a say and voting right. The business is done in order to
do community development. The profits are partly shared among the members and
partly accumulated into a fund. This fund is useful for welfare schemes and for
future contingencies.
These banks are available at each level ie., state level, district
level and town/rural level. The accessibility into the people is high. The
state level cooperative bank is the top authority.
The advantage of cooperative banks is the people's participation,
people's direct benefit, people's management, profit earning, growth in the
community, their participation in the economy of the country. Cooperative
banks operate where the public sector and private sector banks do not operate.
......................
THE CO OPERATING BANKS SERVER TO THE COMMON PEOPLE
IN THIS WAYS
THEY ALLOW LIKE
1. SAVING DEPOSITS
2. TERM DEPOSITS
3. BANK LOANS
4. HOME LOANS
5. TRANSFER TO THE MONEY FROM ONE ACCOUNT TO ANOTHER ONE