Co-operative banks usually meet the short-term credit needs of agriculture. Since agriculture and production of agricultural commodities are subject to natural calamities it requires specialized type of financing. Co-operative banks provide cheap credit to the farmers. These banks are run on co-operative principles.
A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
These banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services.
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