InvestorQ : What are cooperative banks?
sanjana Tulsiani made post

What are cooperative banks?

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Sadaf Khan answered.
1 year ago

A cooperative bank is a bank established on cooperative basis, i.e. it is an association of persons coming together voluntarily to provide banking solutions.

A cooperative bank is usually founded to meet a common economic, social and cultural need. Cooperative banks help serve small industries and self-employed workers.

Thus, a cooperative bank is a jointly-owned and democratically-controlled enterprise that focuses on the needs of a particular section of the society. Ownership and control are directly vested in the hands of the members in a cooperative bank.

These banks are registered under the Cooperative Societies Act, 1912, and are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Cooperative Societies) Act, 1965.