Co-operative Banks in India:
A co-operative bank is a diminutive financial institution whose owners and clients are its members. They are registered under the States Cooperative Societies Act and are governed by the Reserve Bank of India (RBI).
There are 31 cooperative banks in India, each of which is controlled by a government firm to provide services to its employees. These cooperative banks are furthermore managed by the Reserve Bank of India and were subject to the Banking Laws Act of 1955 and the Banking Regulation Act of 1949.
What are Co-operative Banks:
Retail and business banking are structured on a cooperative basis and are considered cooperative banking. Throughout the majority of the world, cooperative banking organisations accept deposits and extend credit.
The term “cooperative banking” refers to the retail banking activities carried out by credit unions, mutual savings banks, building societies, and cooperatives as well as the commercial banking services offered to cooperative firms by mutual organisations (such as cooperative federations).
Co-operative Banks in India:
The Banking Regulations Act of 1949 and the Banking Laws (Co-operative Societies) Act of 1955 govern cooperative banks in India. These banks were founded with the guiding principle of “no profit, no loss,” therefore they don’t merely look for lucrative business opportunities and clients. Mutual assistance is the primary goal of cooperative banks, as the name suggests.
Many significant characteristics of cooperative banking in India are listed below:
They operate under the tenet of “one person, one vote.” Since the members of these banks own them, a democratically elected
Board of Directors is appointed to govern the organisation.
Farmers can obtain agricultural loans from cooperative banks at low interest rates.
Granting credit and loans to those in need in remote places with few banking facilities
The annual profit is dispersed among the cooperative members in accordance with the established guidelines, with a portion going towards financial reserves and other resources.
By their geographic and demographic reach, these institutions play a crucial part in providing last-mile credit and expanding financial services over the entire nation.
Role Of Co-operative Banks in India:
Mutual assistance is a cooperative bank’s main objective. A cooperative bank offers the lowest rate of interest to the worthy poor and needy. They operate under the “no profit, no loss” philosophy. Cooperative banks made a lot of benefits for the economically underdeveloped area, including:
Structure of Co-operative Banks in India
There are two main categories of cooperative banks in India, each of which has further subcategories:
• Urban Co-operative Banks
• Non-Scheduled UCBs
• Scheduled UCBs
• Rural Co-operative Banks
• State Cooperative Banks
• District Central Cooperative Banks
• Primary Agricultural Credit Societies
• State Registrars of Co-operative Societies (RCS)
co-operative banking developed in India:
The Cooperative Credit Societies Act, 1904, was the initial step towards establishing a cooperative society; the Cooperative Societies Act, 1912, advanced that process.
In order to build co-operative training centres, the RBI established the Central Committee for Cooperative Training in post-independence India in 1953.
1954 saw the establishment of the Rural Credit Survey Committee to address the issue of the financial crisis in rural areas.
The banking industry was also affected by the co-operative movement, and by the 1950s, cooperative banks had begun to reach out to the general population in both rural and urban areas.
Benefits of India’s cooperative banks:
These banks have helped the rural populace by offering credit and loans at rates that are lower than those demanded by local money lenders.
They are nationwide in scope and have succeeded in maintaining a close relationship with their clients.
Since the bank is owned and run by its members, they do not aim for high profits and rather helping one another.
Deposit interest rates are high while lending interest rates are low.
They encourage responsible borrowing to lower the danger of loss.
Farmers have benefited from cooperative banks’ assistance by using agricultural credits to purchase necessities like seeds and fertiliser.
Union Budget 2023 Date, Income Tax and Expectations
Co-operative Banks useful in India:
Since before India’s independence, cooperative banks have been a trustworthy source of funding for the populace.
Despite the difficulties the cooperative banks had during the demonetization in November 2016, they provided a variety of apps and online banking options to make things easier.
According to RBI regulations, all cooperative banks’ deposits are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a maximum of Rs. 1 lakh.
Cooperative banks are moving towards embracing steps to improve their banking websites user-friendly and compatible with smartphones as well as enhancing mobile banking tactics. Cooperative banks must pick an IT partner that is agile and provides access to a variety of technologies in order to support innovation and growth in the modern digital world.
Top 10 Co-operative Banks in India:
Following is the list of top 10 Co-operative Banks in India:
Saraswat Co-operative Bank
The best cooperative bank in India is Saraswat Co-operative Bank, founded in 1918.
Its headquarters are in Mumbai, and it operates in six states.
For the fiscal year that ended on March 31, 2020, it reported a gross profit of Rs 651.69 crore.
The bank outperformed all constraints throughout the COVID global epidemic and saw growth across all banking metrics.
The great customer service and openness of Saraswat Co-operative Bank’s policies have contributed to the bank’s growth into one of the industry’s titans in the nation.
In 2019, it was recognised as the “Best technological bank of the year.”
Cosmos Co-operative Bank
The Reserve Bank of India has given permission for Cosmos Bank to become the first institution of its sort to open a currency chest.
The market capitalization and profitability metrics that this bank has created are among the best.
They have assisted Cosmos Bank in solidifying its place as one of the top cooperative banks and in gaining the confidence of its clients.
Shamrao Vithal Co-operative Bank (SVC Bank)
With its registration dating back to 1906 in Mumbai, Shamrao Vithal Co-operative Bank is regarded as a pioneer in India’s cooperative banking sector.
SVC Bank is the new corporate name of Shamrao Vithal Co-operative Bank, the third-largest cooperative bank in India.
SVC Bank makes an effort to assist the greatest number of customers and does more than Rs. 250 billion in business overall.
There are 193 branches of the bank located in ten different Indian states.
SVC Bank received the “Best Urban Co-operative Bank” award from the Brihan Mumbai Nagari Sahakari Banks Association in 2018.
Abhyudaya Co-operative Bank Ltd
The first bank on the list to begin operations following India’s independence in 1964 is Abhyudaya Co-operative Bank Ltd.
With an initial investment of Rs 5000, it was founded by Mumbai’s economically disadvantaged labourers from the Kalachowkie, Sewri, and Parel neighbourhoods, and it now generates billions in revenue.
In Maharashtra, Karnataka, and Gujarat, the Abhyudaya Co-operative Bank has 111 locations, 34 of which provide evening banking services.
The Abhyudaya Co-operative Bank got the “Best IT Enabled Co-operative Bank” award in 2014–15 for keeping up with modern technologies.
Bharat Co-operative Bank
The Mumbai-based Bharat Co-operative Bank was established in 1978.
While being quite new, the bank has a clientele of about 5.5 lakh people in Gujarat, Maharashtra, and Karnataka.
In order to stay current, Bharat Co-operative Bank provides new technological solutions including mobile apps, a variety of card offerings, and others.
Both the “Best Information Technology” and “Best Urban Co-operative Bank” awards were given to it in 2016.
TJSB Co-operative Bank
In terms of the number of customers it serves each day, the Thane Janata Sahakari Bank ranks among the largest banks in the nation.
It was established in 1972 and now has 136 branches throughout 5 states. In order to provide customers with the greatest experience possible, the bank has been continuously adjusting to the most recent technologies.
It is the first cooperative bank to launch UPI, and it has several accolade-winning mobile applications and payment technologies to streamline consumer transactions and banking.
Janata Co-operative Bank
Malleshwaram, Bengaluru, is where the Janta Co-operative Bank was established.
The bank is known as one of the most transparent banks with new objectives set to be achieved every year.
It is affiliated with some well-known names in the nation.
With a reserve of Rs 1,336.61 crore, the bank has been able to pay shareholders an 18% dividend on a consistent basis for many years.
Kalupur Commercial Co-operative Bank
Gujarat’s Kalupur Co-operative Bank was founded there in 1970, and it also has locations in Maharashtra and Gujarat.
It has been shown yearly profit growth for a while; the most recent year, 2019, showed a working capital of Rs 8652.34 crore and a net profit of roughly Rs 122 crores.
The bank offers several unusual amenities and is customer-friendly.
It is Gujarat’s first cooperative bank to use RTGS and the state’s first to have a dealership approved.
NKGSB Co-opere Bank, one of the most reputable financial institutions in the nation, with 109 locations spread throughout five states.
The bank actively pursues the accomplishment of its objectives in accordance with a clear set of principles, beliefs, and goals.
The Ahmedabad Mercantile Co-operative Bank
The Ahmedabad Mercantile Co-operative Bank Ltd., also known as AMCO BANK, was founded in 1966.
It focuses on providing quick and precise service and has a network of 34 branches.
As of March 2021, the bank has a profit of 40.46 crores and an authorised capital of 20 crores.
