Development in Co-Operative Banks in India

Cooperatives represent a new and alternative approach to organization as against proprietary firms, partnership firms, and joint stock companies which represent the most important form of commercial organization. Chiefly relying upon deposits from members and non-members and in case of need, they get finance from either the district central co-operative bank to which they are affiliated to or from the apex co-operative bank if they work in big and metro cities where the apex bank has its Head Office. They provide credit to small scale industrialists, salaried employees, and other urban and semi-urban residents. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.