Co-operative banking in India

Meaning: Co-operative bank is an institution

established on the cooperative basis and work
for some common purpose.
 It originated with the enactment of the co-
operative credit societies act of 1904.
 Co-operative bank actually came into
operation in 1912.
Structure of cooperative banking
• State co-operative banks(state level)

• Central co-operative banks(district level)

• Primary agricultural credit

societies(PACS) (village level)
• Functions of state co-operative banks:
• A)it acts as a link between RBI and other co-
operative banks
• B)it secures balance among the central co-
operative banks
• C)It finances,controls,and supervises the
central co-operative banks and through
them the primary credit societies.
 Functions of central co-operative
banks
• To finance the primary societies.

• It also advances loans and accepts

deposits.

• It mostly finance for agricultural purpose.

 Functions of PACS
• It encourages savings among agriculturists,
accepts deposits from them, give loans to
the needy borrowers and collects
repayment.
• It serves as a link between the ultimate
borrowers,i.e,the rural people and
CCBs,SCBs,RBI