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CO-OPERATIVE BANKS

CO-OPERATIVE BANKSCO-OPERATIVE BANKSDefinition of ooperativesDefinition of ooperatives

A co-operative is an autonomous association of persons A co-operative is an autonomous association of persons united voluntarily to meet their common economic, united voluntarily to meet their common economic, social and cultural needs and aspirations through a social and cultural needs and aspirations through a jointly-owned and democratically controlled jointly-owned and democratically controlled enterpriseenterprise

Cooperative ValuesCooperative Values

Co-operatives are based on the values of self-Co-operatives are based on the values of self-responsibility, democracy, equality and solidarity.responsibility, democracy, equality and solidarity.

In the tradition of their founders, cooperative In the tradition of their founders, cooperative members believe in the ethical values of honesty, members believe in the ethical values of honesty, openness, social responsibility and caring for others. openness, social responsibility and caring for others. The Cooperative Values are vision statement for The Cooperative Values are vision statement for cooperatives.cooperatives.

CO-OPERATIVE BANKSCO-OPERATIVE BANKSDEFINITION Of CO_OPERATIVE BANKDEFINITION Of CO_OPERATIVE BANK

A cooperative bank is a financial A cooperative bank is a financial entity which belongs to its members, entity which belongs to its members, who are at the same time the owners who are at the same time the owners and the customers of their bank. and the customers of their bank.

CO-OPERATIVE BANKSCO-OPERATIVE BANKSFEATURES OF COOPERATIVE BANKSFEATURES OF COOPERATIVE BANKS

Cooperative Banks are organised and managed on the principle of Cooperative Banks are organised and managed on the principle of co-operation, self-help, and mutual help. co-operation, self-help, and mutual help.

They function with the rule of "one member, one vote". They function with the rule of "one member, one vote".

Function on "no profit, no loss" basis.Function on "no profit, no loss" basis.

Cooperative banks, as a principle, do not pursue the goal of profit Cooperative banks, as a principle, do not pursue the goal of profit maximization. maximization.

Cooperative bank performs all the main banking functions of Cooperative bank performs all the main banking functions of deposit mobilization, supply of credit and provision of remittance deposit mobilization, supply of credit and provision of remittance facilities. facilities.

Cooperative Banks provide limited banking products and are Cooperative Banks provide limited banking products and are functionally specialists in agriculture related products. However, functionally specialists in agriculture related products. However, cooperative banks now provide housing loans also.cooperative banks now provide housing loans also.

Cooperative bank do banking business mainly in the agriculture Cooperative bank do banking business mainly in the agriculture and rural sector. and rural sector.

CO-OPERATIVE BANKSCO-OPERATIVE BANKSCooperative banks are perhaps the first government sponsored, Cooperative banks are perhaps the first government sponsored, government-supported, and government-subsidized financial agency in government-supported, and government-subsidized financial agency in India. India.

They get financial and other help from the Reserve Bank of India They get financial and other help from the Reserve Bank of India NABARD, central government and state governments.NABARD, central government and state governments.

Cooperative Banks belong to the money market as well as to the capital Cooperative Banks belong to the money market as well as to the capital market. market.

Primary agricultural credit societies provide short term and medium Primary agricultural credit societies provide short term and medium term loans.term loans.

Cooperative banks are financial intermediaries only partially. The Cooperative banks are financial intermediaries only partially. The sources of their funds (resources) are: sources of their funds (resources) are:

(a) Central and state government, (a) Central and state government,

(b) The Reserve Bank of India and NABARD,(b) The Reserve Bank of India and NABARD,

(c) Other co-operative institutions,(c) Other co-operative institutions,

(d) Ownership funds and,(d) Ownership funds and,

(e) Deposits or debenture issues. (e) Deposits or debenture issues.

TYPES OF COOPERATIVE BANKSTYPES OF COOPERATIVE BANKS1) STATE COOPERATIVE BANKS (SCBs)1) STATE COOPERATIVE BANKS (SCBs)

State cooperative banks are a federation of central cooperative State cooperative banks are a federation of central cooperative banks and act as a watchdog of the cooperative banking structure banks and act as a watchdog of the cooperative banking structure in the state. in the state.

Its funds are obtained from share capital, deposits, loans and Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. overdrafts from the Reserve Bank of India.

State cooperative banks lend money to central cooperative banks State cooperative banks lend money to central cooperative banks and primary societies and not directly to farmers. and primary societies and not directly to farmers.

2) CENTRAL COOPERATIVE BANKS (CCBs)2) CENTRAL COOPERATIVE BANKS (CCBs)

Central cooperative banks are the federations of primary credit Central cooperative banks are the federations of primary credit societies in a district and are of two types – those having a societies in a district and are of two types – those having a membership of primary societies only and those having a membership of primary societies only and those having a membership of societies as well as individuals. membership of societies as well as individuals.

The funds of the bank consist of share capital, deposits, loans and The funds of the bank consist of share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These overdrafts from state cooperative banks and joint stocks. These banks finance member societies within the limits of the borrowing banks finance member societies within the limits of the borrowing capacity of societiescapacity of societies

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GO-OPERATIVE BANKGO-OPERATIVE BANK