Co-Operative Banks in India

INDEX 1. DEFINITION 2. FEATURES 3. HISTORY 4. ESTABLISHMENT 5. FUNCTIONS 6. TYPES 7. CLASSIFICATION 8. RECENT DEVELOPMENTS DEFINITION OF CO-OPERATIVE BANKS A co-operative bank is a monetary entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are oftentimes created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks in general provide their members with a wide range of banking and financial serve (loans, deposits, banking accounts…). Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In nigh countries, they are supervised and conquerled by banking authorities and have to attentiveness prudential banking regulations, which put them at a level acting field with stockholder banks. Depending on countries, this control and supervision give the sack be implemented directly by state entities or delegated to a co-operative federation or central body. All the accommodating banks share common features : Customer-owned entities: In a co-operative bank, the needs of the customers fall in the needs of the owners, as co-operative bank members are both.

As a consequence, the first aim of a co-operative bank is not to maximize profit but to provide the best possible products and operate to its members. Some co-operative banks only operate with their members but most of them as well admit non-member clients to benefit from their banking and financial services. Democratic member control: Co-operative banks are owned and controlled by their members, who democratically elect the gameboard of directors. Members usually have equal voting rights, according to the co-operative commandment of one person, one vote. Profit allocation: In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of... If you desire to get a full essay, order it on our website: Orderessay

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