Cooperative banks and regional rural banks are components of the Indian banking system that provide credit to rural areas. Cooperative banks are organized as unions of primary credit societies under the Cooperative Societies Act of 1912 and have widespread reach. Regional rural banks have authorized capital of 1 crore rupees with paid up capital of 25 lakhs and obtain resources from share capital, deposits, borrowing from sponsor banks, and refinancing from NABARD at below 2%. Their capital is distributed with 50% from the central government, 30% from state governments, and 20% from sponsor banks.

1. Co-operative Banks

2. • Another Component of Indian Banking System.
• Working as per Co-Operative So. Act 1912.
• Union of Primary Credit Societies are called Central Co-operative
Bank.
• Agricultural Co-perative So. 1904
• Wider out Reach.

3. Co-operative Credit Institutions

4. Regional Rural Banks

5. Resources of RRBs
• Share capital
• Deposits from Bank
• Borrowing from Sponsor Bank.
• Refinance from NABARD(below 2%)

6. Capital
• Authorised Capital 1 cr
• 25 lakhs paid up capital
• 50% cerntral govt
• 30% state govt
• 20% sponsor bank