Question

What are the merits and demerits of cooperative bank?

Answer 1

Answer:

Cooperative banks play an important role in promoting rural finance and are particularly suited to Indian conditions. The main objective of the co-operative bank is to provide an effective alternative to the trader's faulty loan system of the lender of the village

Answer 2

Merits :-

• The customer of the bank can have a share of the bank

• They accept deposit from and grant loans to the members at concessional rate of interest

Demerits :-

• They are not mostly used for trading or trade is limited in that bank

• The businessman does not refer to this bank at their top preferences