Cooperative Banks

Homeland of the cooperative movement is England. Robert Owen is the father of the Cooperative Movement. Frederick Nicholson is the father of Indian Cooperative Movement. The year in which the first Cooperative Act (Co-operative Credit Societies Act) was enacted in India was in 1904. Maclagan Committee of 1915 reviewed the progress of Co-operative Credit Societies Act. The committee report known as the 'Magna Carta of the Indian Cooperative Movement' is All India Rural Credit Survey Committee (also known as the Gorwala Committee). The Committee was launched in 1951 and submitted the report in 1954. UN celebrated International Year of Cooperation in 2012. Cooperative banks function fundamentally on the core working principles of self-help, mutual help, and cooperation. The main objective of the Cooperative Bank is to provide financial assistance to the common people, especially the rural people. More services are availed from cooperative banks for farmers, artisans and small businessmen. 

The cooperative movement has a strong influence in India. This can be seen in the banking sector as well. Cooperative banks operate at three levels: State Cooperative Bank, District Cooperative Bank, and Primary Service Cooperative Bank. The head of the State Cooperative Department is Registrar of Cooperative Societies. There are also agricultural and rural development banks and urban banks in the cooperative sector. Cooperative banks are controlled by their respective governing bodies. The Department of Cooperatives of the state government supervises them.

State Cooperative Banks: The highest level of cooperative sector in the state. Financial assistance to district cooperative banks and primary cooperative banks. There are 34 state co-operative banks in India.

District Cooperative Banks: Operate in various centers of the district. Provide assistance and advice to primary cooperative banks. There are a total of 352 district Central Co-operative in India.

Primary Cooperative Banks: Operate in villages. Promote the saving habit of villagers. Provide loans to villagers at low interest rates.