COOPERATIVE BANKS
- March 2, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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 deļ¬ciencies 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: