details on co operative banks

1. CO-OPERATIVE
BANK
GROUP 5
Sy bba

2. INTRODUCTION TO CO-OPERATIVE
BANK
• Cooperative banking institutions takes
DEPOSITS and LEND MONEY in most parts of
the world.
• It differs from STOCKHOLDERS BANK.
• Follows all PRUDENTIAL banking regulation.
• It provides FINANCIAL ASSISTANCES to the
people with small means to protect them
from the debt trap of the money lenders.

3. • It’s a financial entity which belongs to its
members, who are at the same time the
OWNERS and the MEMEBERS of the bank.
• Its often created by person belonging to the
same local or personal community or sharing
a common interest.
• Wide range of banking and financial services
( loans, deposits, and banking accounts etc…)

4. DEFINATION..
• A co-operative bank is a financial entity
which belongs to its members, who areat
the same time the owners and the
customers of their bank. Co-operative
banks are often created by persons
belonging to the same local or
professional community or sharing a
common interest. Co-operative banks
generally provide their members with a
wide range of banking and financial
services (loans, deposits, banking
accounts)

5. FUNCTIONS OF CO-OPERATIVE
BANK
• Co-operative Banks are organised and managed on
the principal of co-operation, self-help, and mutual
help. They work on the basis of “no profit no loss”.
Profit maximization is not their goal.
• Co-operative bank do banking business mainly in
the agriculture and rural sector. However, UCBs,
SCBs, and CCBs operate in semi urban, urban,
and metropolitan areas also.

6. Finance Function:
1. Cooperative banks in India finance rural areas
under:
 Farming Cattle
 Milk
 Personal finance
2. Cooperative banks in India finance urban areas
under:
Self-employment
 Industries
Small scale units
 Home finance
Consumer finance
Personal finance

7. Advantages and disadvantages






aim
management
Area network
Interest rate
Services
Trading limits
/financing limits

8. STRUCTURE OF INDIA’S
CO-OPERATIVE BANK

9. • The State Co-operative Banks (SCBs), Central Cooperative Banks (CCBs) and Urban Co-operative
Banks(UCBs) can normally extend housing loans up to
Rs 1lakh to an individual. The scheduled UCBs,
however, can lend up to Rs 3 lakh for housing
purposes. The UCB scan provide advances
against shares and debentures.

10. • To support the financial requirement of people
• Co-operative banks are categorized at various dimensions
and at various levels
• Co-operative banking structure consists of two main
segment:(a)Agricultural Credit
(b)Non-Agricultural Credit

11. Agricultural
Short
and
medium
term
credit
PACS
CCB
SCB
(BASE
LEVEL)
(DISTRICT
LEVEL)
(APEX
LEVEL)
Sector
(Rural
areas)
CLDB
Long
term
credit
LDB
PLDB

12. Non-Agricultural
Sector
(Urban and SemiUrban Areas)
Urban Co-operative
Banks

13. Co-operative banks in India
FINANCE….
Rural Areas
--Farming
--Cattle
--Milk
--Hatchery
--Personal finance
Urban Areas
-- Small Scale Units
--Industries
--Home finance
--Self Employment
--Personal finance

14. PRODUCTS AND SERVICES
• DEPOSITS
i.Saving Bank Account
ii.Current Account
iii.Recurring Deposits
iv.Fixed Deposits
v.Cash Certificate
•LOANS
i.Loans to Salaried employees
ii.Home Needs Loan
iii.Loan to Pensioners
iv.Education $ Housing Loan
. SERVICES
i. Clearing
ii. Safe Deposit Locker
iii. ATM
iv. Demand Draft/Pay Order

15. Co-operative principles
Voluntary and open membership
Democratic member control
Member economic participation
Autonomy and independence
Education, training and information
Co-operation among Co-operatives
Concern for Community

16. Customer-owned entities
 In a co-operative bank, the needs of the customers
meet the needs of the owners, as co-operative bank
members are both.
• Democratic member control
Co-operative banks follow the principle of “one person, one
vote.
• profit allocation
Profit is usually allocated to members which is related to the
number of shares subscribed by each member.
• limited banking
Co-operative Banks provide limited banking products and
are functionally specialists in agriculture related products.