The co-operative banks in India have a history of nearly a hundred years. The co-operative banks square measure a crucial constituent of the Indian economic system, judgment by their role appointed to them, the expectations they square measure supposed to fulfill, their range, and the range of offices they operate.
The co-operative movement was originated in the west, however the necessary that such bank have assumed in India is seldom paralleled anyplace else in the world.
Their role in rural finance continues to be necessary event lately, and their business in urban areas in addition has increased phenomenally in recent years primarily due to the sharp increase within the amount of primary co-operative banks.
Co-operative banks in India square measure registered beneath the Co-operative Societies Act. The co-operative banks square measure additionally regulated by the Reserve Bank of India (RBI) and ruled by Banking laws Act 1949 and Banking Laws (Co-operative Societies) Act, 1955.
The co-operative banking structure in Republic of India is divided into short structure and long structure. Whereas the short structure is 3 tier structures, long co-operative banking structure is that the 2 tier structures as mentioned below:
A State Co-operative Bank works at the apex level (i.e. works at state level).The Central Co-operative Bank works at the Intermediate Level ( i.e., District Co-operative Banks ltd. works at district level)Primary co-operative credit societies at base level (At village level)
State Co-operative Agriculture and Rural Development Banks (SCARDBs) at the apex level. Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) at the district level or block level.