SCHEDULED COMMERCIAL

V/S

C0-OPERATIVE
BANKS
CAPITAL
BASE
₹200 crore for Small Finance Urban Cooperative Banks can start
SCHEDULED COMMERCIAL BANKS

Banks as per the latest guidelines
for Small Finance Banks.
with a capital base of ₹25 Lakhs to
₹4 Crores depending on the
population of the center where they
propose to establish their
operations.

CAPITAL

ADEQUACY RATIO*
For universal banks, the
requirement of Capital Adequacy
Ratio is 9% and for SFBs it is 15%.
C0-OPERATIVE BANKS
The Capital Adequacy Ratio as
prescribed for these Banks is 9%.

MAINTENANCE
OF SLR/ CRR
The Bank maintains SLR and Co-operative Banks maintain
CRR of 22.50% in addition to the deposits with Scheduled
aforementioned Capital Commercial Banks for their CRR
Adequacy ratio, post which the maintenance.
Bank lends to its customers.
Accordingly a major portion of
the funds deposits are kept as a
reserve to protect your interests.

REGULATORY
OVERVIEW
Stringent RBI supervision
ensures more protection for
customers.
Commercial Banks are
registered and regulated
under Companies Act, 2013.
Cooperative Banks have dual
regulators which lead to diminished
control of RBI over these banks in
terms of supercession of boards or
removal of directors, as the RBI has
over private sector banks.

Corporate Governance at
Commercial Banks is more
stringent, transparent and
regulated in comparison of
Coop Banks.

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 LENDING NORMS/
DUE DILIGENCE
Commercial Banks’ lending is Cooperative Banks can lend only
based on credit due diligence. to its members whose ticket size
Majority of the lending is to is also large.
various customers with a
ticket size of ₹25 lakh or less, The NPA of such banks is higher
which curtails the risk comparatively.
associated to a single high
value defaulting customer.
SCHEDULED COMMERCIAL BANKS

AREA OF
OPERATIONS
Commercial banks can cater to Concentrated in limited locations
customers in multiple locations and services customers therein.

C0-OPERATIVE BANKS
with PAN India presence. Their network is small.
AU Bank has a network of 600+
touchpoints to serve customers.

CUSTOMER
PROTECTION
Electronic banking No such regulatory framework
transactions are secured with for Cooperative Banks.
zero liability for customers
only with Commercial Banks.

BANK
CLOSURE
No such instance for RBI has placed restrictions on
Commercial Banks. banking operations of 31
cooperatives banks and
financial withdrawal
restrcitions on 3 cooperative
banks in the last 2 years.

DICGC CLAIM
SETTLEMENT
No such instance for In the last fiscal, the Deposit
Commercial Banks. Insurance and Credit Guarantee
Corporation of India (DICGC) has
had to settle deposit insurance
claims of Cooperative Banks only.

DEPOSIT
ACCOUNT
Scheduled Commercial Banks Co-operative Banks maintain
maintain deposit account with deposits with Scheduled
RBI for CRR purposes. Commercial Banks for their CRR
maintenance.
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