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” basis.

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).

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