COOPERATIVE BANKS

COOPERATIVE BANKS

TOPIC: Economy

Context- The Reserve Bank of India has imposed a penalty on three co- operative banks, including Nagrik Sahakari Bank Maryadit at at Panna, Satna and Raipur for deficiencies in regulatory compliances Banking Regulation Act, 1949, and the Depositor Education and Awareness Fund Scheme, 2014.

Concept-

• A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
• These banks provide a wide range of regular banking and financial services. However, there are some points where they differ from other banks.
• They came into being with the aim to promote saving and investment habits among people, especially in rural parts of the country.
• Co-operative banks in India are registered under the States Cooperative Societies Act.
• The Co-operative banks are also regulated by the Reserve Bank of India (RBI) and governed by the
  • Banking Regulations Act 1949
  • Banking Laws (Co-operative Societies) Act, 1955.
• Structure of Cooperative Banks: