Co-Operative Banks Structure:

The co-operative banks in India have a history of nearly a hundred years.  The co-operative banks square measure a crucial constituent of the Indian economic system, judgment  by  their  role appointed  to  them,  the  expectations  they square measure supposed  to  fulfill,  their range,  and  the range  of  offices  they  operate.

The co-operative movement  was  originated  in  the  west, however  the necessary that  such  bank  have  assumed in India  is seldom  paralleled anyplace  else  in the  world.

Their  role  in  rural finance  continues  to  be necessary event lately, and their business in urban areas in addition has increased phenomenally in recent  years primarily  due  to  the  sharp  increase within the amount of primary co-operative banks.

Co-operative banks in India square measure registered beneath the Co-operative Societies Act.  The co-operative banks square measure additionally  regulated  by  the  Reserve  Bank  of India  (RBI)  and ruled  by  Banking laws  Act 1949 and Banking Laws (Co-operative Societies) Act, 1955.

The co-operative banking structure in Republic of India is divided  into short structure  and long  structure. Whereas the short structure  is 3 tier structures, long co-operative banking structure is that the 2 tier structures as mentioned below:

Short-Term Co-operative Bank Structure:

A State Co-operative Bank works at the apex level (i.e. works at state level).The  Central  Co-operative  Bank  works  at  the  Intermediate Level ( i.e., District  Co-operative  Banks  ltd.  works at  district level)Primary  co-operative  credit  societies  at  base  level  (At  village level)

Long-Term Co-operative Bank Structure:

State Co-operative Agriculture and Rural Development Banks (SCARDBs) at the apex level. Primary Co-operative Agriculture   and   Rural   Development Banks (PCARDBs) at the district level or block level.

Author: Kumar

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