Question

write a short note on cooperative bank (5 marks with point wise)​

Answer 1

Co-Operative Banks are small financial institutions that offer lending facilities to small businesses in both urban and non-urban regions. These are monitored and regulated by the Reserve Bank of India (RBI) and come under the Banking Regulations Act, 1949 as well as the banking laws act, 1965.

The Co-Operative Banks have a huge significance for the small businesses as these have around 67% penetration in villages and account for 46% of the net funding for the rural businesses through support for processing, housing, warehousing, transport, dairy, etc.

There are 4 types of co-operative banks in India