Which banks are called as Co-operative banks?
Q. All banks registered under the ___________ are considered co-operative banks.- Published on 16 Feb 17
a. Banking Regulation Act 1949
b. The Bankers’ Books Evidence Act–1891
c. Cooperative Societies Act, 1912
d. Both (A) and (C)
ANSWER: Cooperative Societies Act, 1912
All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.
These are banks run by an elected managing committee with provisions of members’ rights and a set of “communally developed and approved bylaws and amendments”.
Co-operative banks work on a “no profit, no loss”
The cooperative banks are regulated by Reserve Bank of India (RBI)
These banks have a three-tier structure
- Primary (agriculture or urban) credit societies
- District central co-operative banks
- State co-operative banks (at apex level).