Investment Opportunities For Banks
...almost 100 years ago. The cooperative banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co-operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative SocietiesAct, 1965).
Cooperative banks in India finance rural areas under: Farming, Cattle, Milk, Hatchery and Personal finance.
Cooperative banks in India finance urban areas under: Self-employment, Industries, Small scale units, Home finance, Consumer finance and Personal finance.
Some facts about Cooperative banks in India:
• Some cooperative banks in India are more forward than many of the state and private sector banks.
• According to NAFCUB the total deposits & advances of Co-operative Banks in India is much more than old private sector banks & also the new private sector banks.
• This exponential growth of Co-operative Banks in India is attributed mainly to their much better local reach, personal interaction with customers and their ability to catch the nerve of the local clientele.
URBAN COOPERATIVE BANKS (UCBS)
Urban cooperative banks also referred to as primary co-operative banks, play an important role in meeting the growing credit needs of urban and semi urban areas of the country. They mobilise savings from the middle and lower income groups and provide credit to small borrowers, including weaker sections of the society. These banks in India are financial cooperatives similar to credit unions found abroad, except that they can also accept deposits from non-members and form a part of the payments systems.
MARKET SHARE OF UCBS
As on March...
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