Description
A Co-operative bank, as its name indicates is an institution consisting of a number of individuals who join together to pool their surplus savings for the purpose of eliminating the profits of the bankers or money lenders with a view to distributing the same amongst the depositors and borrowers.
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH. 1. INTRO!CTION TO CO-O"#R$TI%#
B$N&IN'
DEFINATION:
($ Co-operative )ank* as its name in+icates is an institution
consisting o, a num)er o, in+ivi+ua-s ./o 0oin toget/er to poo- t/eir surp-us
savings ,or t/e purpose o, e-iminating t/e pro,its o, t/e )ankers or mone1
-en+ers .it/ a vie. to +istri)uting t/e same amongst t/e +epositors an+
)orro.ers.2
T/e Co-operative Banks $ct* o, 3445 (t/e $ct) +e,ines a co-operative
)ank as a co-operative registere+ as a co-operative )ank in terms o, t/e $ct
./ose mem)ers 6
1. are o, simi-ar occupation or pro,ession or ./o are emp-o1e+ )1 a
common emp-o1er or ./o are emp-o1e+ .it/in t/e same )usiness
+istrict7 or
2. /ave common mem)ers/ip in an association or organisation*
inc-u+ing a )usiness* re-igious* socia-* co-operative* -a)our or e+ucationa-
group7 or
3. /ave common mem)ers/ip in an association or organisation*
inc-u+ing a )usiness* re-igious* socia-* co-operative* -a)our or
e+ucationa- group7 or
4. Resi+e .it/in t/e same +e,ine+ communit1 or geograp/ica- area.
Page
1
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CO-OPERTIVE BANKING - AN INTRODUCTION:
Co-operative )ank* in a nuts/e--* provi+es ,inancia- assistance to t/e
peop-e .it/ sma-- means to protect t/em ,rom t/e +e)t trap o, t/e
mone1-en+ers. It is a part o, vast an+ po.er,u- structure o, co-operative
institutions ./ic/ are engage+ in tasks o, pro+uction* processing* marketing*
+istri)ution* servicing an+ )anking in In+ia. $ co-operative )ank is a
,inancia- entit1 ./ic/ )e-ongs to its mem)ers* ./o are at t/e same time t/e
o.ners an+ t/e customers o, t/eir )ank. Co-operative )anks are o,ten
create+ )1 persons )e-onging to t/e same -oca- or pro,essiona- communit1 or
s/aring a common interest. T/ese )anks genera--1 provi+e t/eir mem)ers
.it/ a .i+e range o, )anking an+ ,inancia- services (-oans* +eposits* )anking
accounts8). Co-operative )anks +i,,er ,rom stock/o-+er )anks )1 t/eir
organi9ation* t/eir goa-s* t/eir %a-ues an+ t/eir governance.
T/e Co-operative Banking :1stem in In+ia is c/aracteri9e+ )1 a
re-ative-1 compre/ensive net.ork to t/e grass root -eve-. T/is sector main-1
,ocuses on t/e -oca- popu-ation an+ micro- )anking among mi++-e an+ -o.
income strata o, t/e societ1. T/ese )anks operate main-1 ,or t/e )ene,it o,
rura- areas* particu-ar-1 t/e agricu-tura- sector.
Page
2
T.Y.Bcom (Banking & Insurance) Co-operative Banking
OBJECTIVES OF STUDY
? T/e O)0ective o, t/e stu+1 o, Co-operative Banking is to kno.
t/e origin o, Co-operative Banks in In+ia.
? To kno. t/e ro-e o, Co-operative )anks in In+ia.
? To kno. t/e importance o, Co-operative Banks in In+ia.
? To kno. t/e t1pes o, Co-operative Banks.
? To kno. t/e eve-opment o, Co-operative Banks in In+ia.
Page
3
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH. 3. ORI'IN $N O"#R$TION O; CO-
O"#R$TI%# B$N&IN'
ORIGIN OF CO-OPERATIVE BANKING:
T/e )eginning co-operative )anking in In+ia +ates )ack to a)out
1ua-it1* e>uit1 an+ se-, /e-p gave .a1 to t/e
t/oug/ts o, se-, responsi)i-it1 an+ se-, a+ministration ./ic/ resu-te+ in
giving )irt/ o, co-operative. T/e origin on co-operative movement .as one
suc/ event-arising out o, a situation o, crisis* e?p-oitation an+ su,,erings.
Co-operative )anks in In+ia came into e?istence .it/ t/e enactment o,
t/e $gricu-tura- Cre+it Co-operative
cieties $ct in 1uirements are -ess t/an commercia- )anks.
C. $s sai+ ear-ier* co-operative )anks accept current* saving* an+ ,i?e+ or
time +eposits ,rom in+ivi+ua-s an+ institutions inc-u+ing )anks.
uite comp-e?.
T/e rates c/arge+ )1 t/em +epen+ upon t/e t1pe o, )ank* t/e t1pe o, -oans*
Page
13
T.Y.Bcom (Banking & Insurance) Co-operative Banking
an+ var1 ,rom state to state.
14. :ince 1uirements o, t/e ur)an mi++-e c-asses.
T/e RBI +e,ines !r)an Co-operative )anks as (sma-- si9e+ co-
operative-1 organi9e+ )anking units ./ic/ operate in metropo-itan* ur)an
an+ semi-ur)an centers to cater main-1 to t/e nee+s o, sma-- )orro.ers* vi9.
o.ners o, sma-- sca-e in+ustria- units* retai- tra+ers* pro,essiona- an+ sa-aries
c-asses.2
!r)an Co-operative )anks mo)i-i9e savings ,rom t/e mi++-e an+
-o.er income groups an+ purve1 cre+it to sma-- )orro.ers* inc-u+ing .eaker
sections o, t/e societ1. T/ese )anks organi9e on a -imite+ -ia)i-it1 )asis*
genera--1 e?ten+ t/eir area o, operation over a to.n. T/e main ,unctions o,
t/ese )anks are to promote t/ri,t )1 attracting +eposits ,rom mem)ers an+
non-mem)ers an+ to a+vance -oans to t/e mem)ers. It is registere+ un+er
Co-operativescieties $ct o, t/e respective state 'overnments. "rior to
1uac1 o, rura- cre+it
engage+ t/e attention o, RBI an+ 'overnment t/roug/out t/e 1uit1 in cooperatives an+
-imiting participation in t/e Boar+s o, cooperative )anks to on-1 one
nominee. $n1 state government or a cooperative .is/ing to re+uce t/e state
e>uit1 ,urt/er .ou-+ )e ,ree to +o so an+ t/e cooperative .i-- not )e
prevente+ ,rom +oing so.
Page
32
T.Y.Bcom (Banking & Insurance) Co-operative Banking
iv. $--o.ing transition o, cooperatives registere+ un+er t/e C:$ to migrate
un+er t/e "ara--e- $ct (./erever enacte+)
v. Iit/+ra.ing restrictive or+ers on ,inancia- matters
vi. "ermitting cooperatives in a-- t/e t/ree tiers ,ree+om to take -oans ,rom
an1 ,inancia- institution an+ not necessari-1 ,rom on-1 t/e upper tier an+
simi-ar-1 p-acing t/eir +eposits .it/ an1 regu-ate+ ,inancia- institution o,
t/eir c/oice.
vii. "ermitting cooperatives un+er t/e para--e- $cts (./erever enacte+) to )e
mem)ers o, upper tiers un+er t/e e?isting cooperative societies $cts an+
vice-versa.
viii. @imiting po.ers o, state governments to superse+e Boar+s
i?. #nsuring time-1 e-ections )e,ore t/e e?pir1 o, t/e term o, t/e e?isting
Boar+s.
?. ;aci-itating regu-ator1 po.ers ,or RBI in case o, cooperative )anks as
mentione+ ear-ier.
ASSET STRUCTURE OF CO-OPERATIVE BANKS AS PER 2::;
Page
33
T.Y.Bcom (Banking & Insurance) Co-operative Banking
? T/e cooperative )anksJcre+it institutions constitutes t/e secon+
segment o, In+ian )anking s1stem* comprising o, a)out 1=N o, t/e
tota- )anking sector asset (Garc/ 3445).
? Bu-k o, t/e cooperative )anks operate in t/e rura- regions .it/ rura-
coop )anks accounting ,or A5N o, t/e tota- asset an+ A5N o, t/e tota-
)ranc/es o, a-- cooperative )anks.
? :/are o, rura- cooperatives in tota- institutiona- cre+it .as A3N in
1uirements o, t/is sector* an+ t/is
/as aggravate+ t/e +i,,icu-ties o, co-operative )anks. T/e t/eor1 t/at co-
Page
36
T.Y.Bcom (Banking & Insurance) Co-operative Banking
operative )anks .ou-+ )e )uo1e+ up )1 t/e competition ,rom ot/er ,inancia-
institutions +oes not appear to /ave .orke+.
E. Co-operative )anks are not +oing .e-- in a-- t/e states7 on-1 a ,e. account
,or a ma0or part o, t/eir )usiness. ;or e?amp-e* 5B per cent o, tota- +eposits
mo)i-ise+ )1 :tate C-operative Banks .as ,rom on-1 seven states in 1uit1 )ase +ue to non-participations o, t/e mem)ers in
t/e ,inancia- activities an+ -imite+ area o, operation is )ecoming a
permanent o)stac-e in t/e progress o, t/is sector.
5. "oor pro,it position an+ )ur+en o, /uge accumu-ate+ -osses o, severa- co-
operative )anks /as t/reatene+ t/e ver1 surviva- o, t/ese )anks. T/e amount
o, cost o, management o, t/is sector /as a+verse-1 a,,ecte+ its pro,ita)i-it1.
Page
37
T.Y.Bcom (Banking & Insurance) Co-operative Banking
C. Gost o, t/e Co-operative )anks are su,,ering ,rom t/e -ack o, pro,essiona-
management. In t/e +eregu-ate+ environment an+ sti,, competition in t/e
)anking sector* +o to -ack o, t/e pro,essiona-ism in carr1ing out )anking
activities* t/e .eakness o, t/ese )anks /as )ecome more prominent.
uire+ to
pu)-is/ its )a-ance s/eet in a ne.spaper in circu-ation in t/e main area o,
operations o, t/e )ank. T/e1 are a-so re>uire+ to p-ace t/eir annua- accounts
)e,ore t/e annua- genera- meeting. Certain minimum +isc-osures /ave )een
prescri)e+ )1 RBI. $-- t/is in,ormation can )e use+ )1 pu)-ic in making
investment +ecision.
Ho.ever* t/e )ank customer /as to make /is or /er o.n c/oice*
+epen+ing on ./ic/ t/e )ank o,,ers t/e most suita)-e pro+uct. I/i-e t/e
RBI is +oing its )it* it sa1s 1ou s/ou-+ a-so run t/e ,o--o.ing c/ecks to
ensure t/at 1ou /ave a nice e?perience.
Page
44
T.Y.Bcom (Banking & Insurance) Co-operative Banking
• C"$&- ')+ 1$*)s!t &),$+. $sk t/e )ank to ./at e?tent 1our +eposit
.i-- )e covere+ )1 IC'C insurance i, 1ou are not investing in t/e
name o, an in+ivi+ua- )ut as a )usiness organi9ation.( In t/e event o, a
)ank ,ai-ure* IC'C protects )ank +eposits t/at are pa1a)-e in In+ia.)
• S&"$1($1 ba%-s. T/e BE sc/e+u-e+ cooperatives )anks are ,air-1
sa,e.
• S!0$. ;or non-sc/e+u-e+ )anks* t/ere is sa,et1 in si9e. eci+e in ,avor
o, )igger ur)an co-operative )anks.
• N)%-*$+')+#!%/ ass$ts. T/ese s/ou-+ )e .it/in sing-e +igits. T/e
/ig/er t/e N"$* t/e )igger t/e risk.
• Ca*!ta a1$C(a&5. T/is ratio s/ou-+ not )e -ess t/an < per cent.
• C+$1!t-1$*)s!t +at!). I+ea--1* t/e ratio s/ou-+ )e AA per cent.
$n1t/ing more s/o.s t/at t/e )ank is not in a position to -en+ an+*
/ence* get ne. )usiness to pa1 )ack t/e +epositors.
• P+)'!ts. C/eck ./et/er t/e )ank /as )een making pro,its ,or t/e -ast
t/ree 1ears.
Page
45
T.Y.Bcom (Banking & Insurance) Co-operative Banking
• RBI 1!+$&t!,$: C/eck out t/e current ,inancia- status o, a )ank
operating un+er RBIMs +irective )e,ore +ea-ing .it/ it.
S)#$ 'a&ts ab)(t C))*$+at!,$ ba%-s !% I%1!a:
?me cooperative )anks in In+ia are more ,or.ar+ t/an man1 o, t/e state
an+ private sector )anks.
? T/e tota- +eposits & -en+ing o, Cooperative Banks in In+ia is muc/ more
t/an O-+ "rivate :ector Banks & a-so t/e Ne. "rivate :ector Banks.
? T/is e?ponentia- gro.t/ o, Co operative Banks in In+ia is attri)ute+
main-1 to t/eir muc/ )etter -oca- reac/* persona- interaction .it/
customers* an+ t/eir a)i-it1 to catc/ t/e nerve o, t/e -oca- c-iente-e.
Page
46
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH.
A Co-operative bank, as its name indicates is an institution consisting of a number of individuals who join together to pool their surplus savings for the purpose of eliminating the profits of the bankers or money lenders with a view to distributing the same amongst the depositors and borrowers.
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH. 1. INTRO!CTION TO CO-O"#R$TI%#
B$N&IN'
DEFINATION:
($ Co-operative )ank* as its name in+icates is an institution
consisting o, a num)er o, in+ivi+ua-s ./o 0oin toget/er to poo- t/eir surp-us
savings ,or t/e purpose o, e-iminating t/e pro,its o, t/e )ankers or mone1
-en+ers .it/ a vie. to +istri)uting t/e same amongst t/e +epositors an+
)orro.ers.2
T/e Co-operative Banks $ct* o, 3445 (t/e $ct) +e,ines a co-operative
)ank as a co-operative registere+ as a co-operative )ank in terms o, t/e $ct
./ose mem)ers 6
1. are o, simi-ar occupation or pro,ession or ./o are emp-o1e+ )1 a
common emp-o1er or ./o are emp-o1e+ .it/in t/e same )usiness
+istrict7 or
2. /ave common mem)ers/ip in an association or organisation*
inc-u+ing a )usiness* re-igious* socia-* co-operative* -a)our or e+ucationa-
group7 or
3. /ave common mem)ers/ip in an association or organisation*
inc-u+ing a )usiness* re-igious* socia-* co-operative* -a)our or
e+ucationa- group7 or
4. Resi+e .it/in t/e same +e,ine+ communit1 or geograp/ica- area.
Page
1
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CO-OPERTIVE BANKING - AN INTRODUCTION:
Co-operative )ank* in a nuts/e--* provi+es ,inancia- assistance to t/e
peop-e .it/ sma-- means to protect t/em ,rom t/e +e)t trap o, t/e
mone1-en+ers. It is a part o, vast an+ po.er,u- structure o, co-operative
institutions ./ic/ are engage+ in tasks o, pro+uction* processing* marketing*
+istri)ution* servicing an+ )anking in In+ia. $ co-operative )ank is a
,inancia- entit1 ./ic/ )e-ongs to its mem)ers* ./o are at t/e same time t/e
o.ners an+ t/e customers o, t/eir )ank. Co-operative )anks are o,ten
create+ )1 persons )e-onging to t/e same -oca- or pro,essiona- communit1 or
s/aring a common interest. T/ese )anks genera--1 provi+e t/eir mem)ers
.it/ a .i+e range o, )anking an+ ,inancia- services (-oans* +eposits* )anking
accounts8). Co-operative )anks +i,,er ,rom stock/o-+er )anks )1 t/eir
organi9ation* t/eir goa-s* t/eir %a-ues an+ t/eir governance.
T/e Co-operative Banking :1stem in In+ia is c/aracteri9e+ )1 a
re-ative-1 compre/ensive net.ork to t/e grass root -eve-. T/is sector main-1
,ocuses on t/e -oca- popu-ation an+ micro- )anking among mi++-e an+ -o.
income strata o, t/e societ1. T/ese )anks operate main-1 ,or t/e )ene,it o,
rura- areas* particu-ar-1 t/e agricu-tura- sector.
Page
2
T.Y.Bcom (Banking & Insurance) Co-operative Banking
OBJECTIVES OF STUDY
? T/e O)0ective o, t/e stu+1 o, Co-operative Banking is to kno.
t/e origin o, Co-operative Banks in In+ia.
? To kno. t/e ro-e o, Co-operative )anks in In+ia.
? To kno. t/e importance o, Co-operative Banks in In+ia.
? To kno. t/e t1pes o, Co-operative Banks.
? To kno. t/e eve-opment o, Co-operative Banks in In+ia.
Page
3
T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH. 3. ORI'IN $N O"#R$TION O; CO-
O"#R$TI%# B$N&IN'
ORIGIN OF CO-OPERATIVE BANKING:
T/e )eginning co-operative )anking in In+ia +ates )ack to a)out
1ua-it1* e>uit1 an+ se-, /e-p gave .a1 to t/e
t/oug/ts o, se-, responsi)i-it1 an+ se-, a+ministration ./ic/ resu-te+ in
giving )irt/ o, co-operative. T/e origin on co-operative movement .as one
suc/ event-arising out o, a situation o, crisis* e?p-oitation an+ su,,erings.
Co-operative )anks in In+ia came into e?istence .it/ t/e enactment o,
t/e $gricu-tura- Cre+it Co-operative
cieties $ct in 1uirements are -ess t/an commercia- )anks.C. $s sai+ ear-ier* co-operative )anks accept current* saving* an+ ,i?e+ or
time +eposits ,rom in+ivi+ua-s an+ institutions inc-u+ing )anks.
uite comp-e?.
T/e rates c/arge+ )1 t/em +epen+ upon t/e t1pe o, )ank* t/e t1pe o, -oans*
Page
13
T.Y.Bcom (Banking & Insurance) Co-operative Banking
an+ var1 ,rom state to state.
14. :ince 1uirements o, t/e ur)an mi++-e c-asses.
T/e RBI +e,ines !r)an Co-operative )anks as (sma-- si9e+ co-
operative-1 organi9e+ )anking units ./ic/ operate in metropo-itan* ur)an
an+ semi-ur)an centers to cater main-1 to t/e nee+s o, sma-- )orro.ers* vi9.
o.ners o, sma-- sca-e in+ustria- units* retai- tra+ers* pro,essiona- an+ sa-aries
c-asses.2
!r)an Co-operative )anks mo)i-i9e savings ,rom t/e mi++-e an+
-o.er income groups an+ purve1 cre+it to sma-- )orro.ers* inc-u+ing .eaker
sections o, t/e societ1. T/ese )anks organi9e on a -imite+ -ia)i-it1 )asis*
genera--1 e?ten+ t/eir area o, operation over a to.n. T/e main ,unctions o,
t/ese )anks are to promote t/ri,t )1 attracting +eposits ,rom mem)ers an+
non-mem)ers an+ to a+vance -oans to t/e mem)ers. It is registere+ un+er
Co-operatives
cieties $ct o, t/e respective state 'overnments. "rior to1uac1 o, rura- cre+it
engage+ t/e attention o, RBI an+ 'overnment t/roug/out t/e 1uit1 in cooperatives an+
-imiting participation in t/e Boar+s o, cooperative )anks to on-1 one
nominee. $n1 state government or a cooperative .is/ing to re+uce t/e state
e>uit1 ,urt/er .ou-+ )e ,ree to +o so an+ t/e cooperative .i-- not )e
prevente+ ,rom +oing so.
Page
32
T.Y.Bcom (Banking & Insurance) Co-operative Banking
iv. $--o.ing transition o, cooperatives registere+ un+er t/e C:$ to migrate
un+er t/e "ara--e- $ct (./erever enacte+)
v. Iit/+ra.ing restrictive or+ers on ,inancia- matters
vi. "ermitting cooperatives in a-- t/e t/ree tiers ,ree+om to take -oans ,rom
an1 ,inancia- institution an+ not necessari-1 ,rom on-1 t/e upper tier an+
simi-ar-1 p-acing t/eir +eposits .it/ an1 regu-ate+ ,inancia- institution o,
t/eir c/oice.
vii. "ermitting cooperatives un+er t/e para--e- $cts (./erever enacte+) to )e
mem)ers o, upper tiers un+er t/e e?isting cooperative societies $cts an+
vice-versa.
viii. @imiting po.ers o, state governments to superse+e Boar+s
i?. #nsuring time-1 e-ections )e,ore t/e e?pir1 o, t/e term o, t/e e?isting
Boar+s.
?. ;aci-itating regu-ator1 po.ers ,or RBI in case o, cooperative )anks as
mentione+ ear-ier.
ASSET STRUCTURE OF CO-OPERATIVE BANKS AS PER 2::;
Page
33
T.Y.Bcom (Banking & Insurance) Co-operative Banking
? T/e cooperative )anksJcre+it institutions constitutes t/e secon+
segment o, In+ian )anking s1stem* comprising o, a)out 1=N o, t/e
tota- )anking sector asset (Garc/ 3445).
? Bu-k o, t/e cooperative )anks operate in t/e rura- regions .it/ rura-
coop )anks accounting ,or A5N o, t/e tota- asset an+ A5N o, t/e tota-
)ranc/es o, a-- cooperative )anks.
? :/are o, rura- cooperatives in tota- institutiona- cre+it .as A3N in
1uirements o, t/is sector* an+ t/is
/as aggravate+ t/e +i,,icu-ties o, co-operative )anks. T/e t/eor1 t/at co-
Page
36
T.Y.Bcom (Banking & Insurance) Co-operative Banking
operative )anks .ou-+ )e )uo1e+ up )1 t/e competition ,rom ot/er ,inancia-
institutions +oes not appear to /ave .orke+.
E. Co-operative )anks are not +oing .e-- in a-- t/e states7 on-1 a ,e. account
,or a ma0or part o, t/eir )usiness. ;or e?amp-e* 5B per cent o, tota- +eposits
mo)i-ise+ )1 :tate C-operative Banks .as ,rom on-1 seven states in 1uit1 )ase +ue to non-participations o, t/e mem)ers in
t/e ,inancia- activities an+ -imite+ area o, operation is )ecoming a
permanent o)stac-e in t/e progress o, t/is sector.
5. "oor pro,it position an+ )ur+en o, /uge accumu-ate+ -osses o, severa- co-
operative )anks /as t/reatene+ t/e ver1 surviva- o, t/ese )anks. T/e amount
o, cost o, management o, t/is sector /as a+verse-1 a,,ecte+ its pro,ita)i-it1.
Page
37
T.Y.Bcom (Banking & Insurance) Co-operative Banking
C. Gost o, t/e Co-operative )anks are su,,ering ,rom t/e -ack o, pro,essiona-
management. In t/e +eregu-ate+ environment an+ sti,, competition in t/e
)anking sector* +o to -ack o, t/e pro,essiona-ism in carr1ing out )anking
activities* t/e .eakness o, t/ese )anks /as )ecome more prominent.
uire+ to
pu)-is/ its )a-ance s/eet in a ne.spaper in circu-ation in t/e main area o,
operations o, t/e )ank. T/e1 are a-so re>uire+ to p-ace t/eir annua- accounts
)e,ore t/e annua- genera- meeting. Certain minimum +isc-osures /ave )een
prescri)e+ )1 RBI. $-- t/is in,ormation can )e use+ )1 pu)-ic in making
investment +ecision.
Ho.ever* t/e )ank customer /as to make /is or /er o.n c/oice*
+epen+ing on ./ic/ t/e )ank o,,ers t/e most suita)-e pro+uct. I/i-e t/e
RBI is +oing its )it* it sa1s 1ou s/ou-+ a-so run t/e ,o--o.ing c/ecks to
ensure t/at 1ou /ave a nice e?perience.
Page
44
T.Y.Bcom (Banking & Insurance) Co-operative Banking
• C"$&- ')+ 1$*)s!t &),$+. $sk t/e )ank to ./at e?tent 1our +eposit
.i-- )e covere+ )1 IC'C insurance i, 1ou are not investing in t/e
name o, an in+ivi+ua- )ut as a )usiness organi9ation.( In t/e event o, a
)ank ,ai-ure* IC'C protects )ank +eposits t/at are pa1a)-e in In+ia.)
• S&"$1($1 ba%-s. T/e BE sc/e+u-e+ cooperatives )anks are ,air-1
sa,e.
• S!0$. ;or non-sc/e+u-e+ )anks* t/ere is sa,et1 in si9e. eci+e in ,avor
o, )igger ur)an co-operative )anks.
• N)%-*$+')+#!%/ ass$ts. T/ese s/ou-+ )e .it/in sing-e +igits. T/e
/ig/er t/e N"$* t/e )igger t/e risk.
• Ca*!ta a1$C(a&5. T/is ratio s/ou-+ not )e -ess t/an < per cent.
• C+$1!t-1$*)s!t +at!). I+ea--1* t/e ratio s/ou-+ )e AA per cent.
$n1t/ing more s/o.s t/at t/e )ank is not in a position to -en+ an+*
/ence* get ne. )usiness to pa1 )ack t/e +epositors.
• P+)'!ts. C/eck ./et/er t/e )ank /as )een making pro,its ,or t/e -ast
t/ree 1ears.
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45
T.Y.Bcom (Banking & Insurance) Co-operative Banking
• RBI 1!+$&t!,$: C/eck out t/e current ,inancia- status o, a )ank
operating un+er RBIMs +irective )e,ore +ea-ing .it/ it.
S)#$ 'a&ts ab)(t C))*$+at!,$ ba%-s !% I%1!a:
?
me cooperative )anks in In+ia are more ,or.ar+ t/an man1 o, t/e statean+ private sector )anks.
? T/e tota- +eposits & -en+ing o, Cooperative Banks in In+ia is muc/ more
t/an O-+ "rivate :ector Banks & a-so t/e Ne. "rivate :ector Banks.
? T/is e?ponentia- gro.t/ o, Co operative Banks in In+ia is attri)ute+
main-1 to t/eir muc/ )etter -oca- reac/* persona- interaction .it/
customers* an+ t/eir a)i-it1 to catc/ t/e nerve o, t/e -oca- c-iente-e.
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T.Y.Bcom (Banking & Insurance) Co-operative Banking
CH.