Co-operative Bank / Meaning / and Types

Types of co-operative Bank

There are three types of co-operative Bank operating in our country. They are primary credit societies, central cooperative Bank and state coordinator bank. These banks are organised at three levels, village or town level, district level and state level.

Primary credit societies - 

These are formed at the village or town level with borrower and non borrower members residing in one locality. The operation's of each society are registered to a small area so that the the members know each other and able to watch over the activities of all members to prevent frauds.

Central co-operative Bank-

These banks operate at the district level having some e the primary credit societies belonging to the same district as their members. These banks provide loans to their members and functions as a link between the primary credit societies and state cooperative Bank.

State co-operative Bank- 

These are the apex co-operative Bank in all the states of the country. They mobilise funds and help in its proper channelisation among various sectors. The money reaches the individual borrowers from the state co-operative Bank through the Central co-operative Bank and primary credit societies.

Specialised banks-

There are some banks, which cater to the requirements and provide overall support for sending up business up business in specific areas of activity. EXIM BANK , SIDBI and NABARD and example of such bank. They engage themselves in some specific area or activity and thus, are called specialised banks and are development financial institutions. Let us know about them.