Co-operative banks have their importance in a country like India as they have been instrumental in the development and growth of the socio-economically weaker strata of Indian society. The concept of co-operative banks was initiated with the primary purpose of freeing the needy people from the clutches of moneylenders who demand high rates of interest.
The co-operative society act was passed in the early 20th century in order to govern a separate organization and extend credits among their members. These societies were established for the members within a specific geographical area.After a certain period, these societies extended and were called banks.
"With a community-first approach, co-operative banks empower local economies through accessible and personalized banking solutions."
General Characteristics of Co-operative Banks
There are three types of co-operative banks in India and their classifications are given below:
Tier-2 District/Central Co-operative Banks: These function at the district level. Their primary objective is to grant money to primary co-operative banks.
Tier-3 Primary Agricultural Credit Societies: These are the base institutions in the category of co-operative bank. These are situated in rural or urban areas and serve the local people directly, providing them loans and creating deposit accounts.
Saraswat Co-operative Bank
Widely known as one of the big banks of its kind in India, it boasts a rich history of more than 100 years. As of March,’2023, the bank has 294 branches across the country. The excellent customer support and the transparent policies of the bank have helped the bank not only to stay afloat for all these years but also to shape itself up as one of the best amongst the lot.
Cosmos Co-operative Bank
Established in the year 1906 by N.C. Kelkar, this bank has its roots in the pre-independence era. The company has a huge workforce totalling more than 2700 and has as many as 170 branches across the country. The bank has shown some promising figures when it comes to its market capitalization and profits.
This has helped the bank become one of the best in the segment while gaining immense trust of the customers. Among the many firsts that the company has to its name, the one that is truly notable is that this was the first co-operative bank to have a currency chest.
Shamrao Vithal Co-operative Bank
Often referred to as SVC bank, it is a scheduled co-operative bank in India. The banks registration dates back to the early 1900s. It was established in the year 1906 in the financial capital - Mumbai.
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by Jayesh Agarwal
