What will happen after you have emergency would like of money from your co-operative savings checking account and suddenly bank curtail your withdrawal or limit it to mere Rs.1, 000 per day?
This is what happened recently with customers of one native co-operative bank of Bangalore. Therefore, it is important to grasp the chance concerned in banking with such co-operative banks. Before continuing additional allow us to initial perceive what co-operative bank is.
Co-operative banks area unit little scaled banks that principally operate in rural still, as urban areas of Bharat to cater the banking would like of social teams, man of affairs or little borrowers. Co-operative banks area unit registered beneath the Co-operative Societies Act. They are regulated by tally, banking rules Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Essentially their area unit 2 styles of Co-operative banks.
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.
- This Act may be cited as the Co-operative Societies Act.
- In this Act-
‘Bonus” means a share of the profits of a registered society divided among its members in proportion to the volume of business done with the society by them from which the profits of the society were derived;
“Committee” means the governing body of a registered society to whom the management of its affairs is entrusted;
“Dividend” means a share of the profits of a registered society divided among its members in proportion to the share capital held by them;
“Member” includes a person or registered society joining in the application for the registration of a society and a person or registered society admitted to membership in accordance with the rules;
“Officer” includes the chairman, secretary, treasurer, member of committee, or other person empowered under the regulations or rules to give directions in regard to the business of a registered society;
“Registered society” means a co-operative society registered under this Act;
“Registrar” means the Registrar of Co-operative Societies appointed under section 3 and includes any person when exercising such powers of the Registrar as may have been conferred upon him under that section;
“Regulations” means regulations made under this Act; “rules” means the registered rules made by a society under this Act.