COOPERATIVE BANKS

  • March 2, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments

 

 

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:

Cooperative banks economy