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.
More from this Section
- Trust Department Specialists
Specialists in a bank’s trust department provide a wide variety of customer services. They aid companies in managing their...
- Secured and Unsecured loan
Loan/Advance may be secure or unsecured.Secured loans are those loans that are protected by an asset or collateral of some sort.
- Tier 1 Capital
Tier 1 Capital refers to core capital consisting of Capital, Statutory Reserves, Revenue and other reserves, Capital Reserves (excluding
- Rate Sensitive Liabilities (RSLs)
RSL or rate sensitive liabilities are those liabilities whose value changes with the change in market interest rate.
- Bank Debits
Bank Debits are the sum of the value of all cheques and other instruments charged against the deposited funds of a bank’s customer.
- Blank Endorsement
Blank Endorsement is an endorsement in blank specifies no endorsee and a bill so endorsed becomes payable to bearer and may be negotiated by delivery.
- Tax Haven
Tax Haven is an international banking and financial centre providing privacy and tax benefits