co operative bank in India

Cooperative Bank India: One for all, all for one

The fundamental principle of co-operation is: “One for all, all for one”.A cooperative bank is built on a cooperative basis. It deals with the ordinary banking business. Like other banks, the cooperative banks are formed by collecting funds through shares, accept deposits, and grant loans. After reading this, you will get to know more about co-operative banks, its mission objectives, etc


The cooperative movement in India began primarily for dealing with the problem of rural credit. In 1904 The long-dated history of Indian cooperative banking was started. It began with the development of the Cooperative Societies Act. The objective of this Act was to establish cooperative credit societies “to encourage thrift, self-help, and cooperation among agriculturists, artisans, and persons of limited means.”

The 1912 Cooperative Societies Act, acknowledged the immediate need for the founding of new organizations for supervising, auditing, and supplying cooperative credit. These organizations were-

  • Firstly they proposed a union, consisting of principal societies
  • And it suggested the need for central banks
  • lastly Provincial banks.


Pic credits : Diginomica

It’s beginning in India took place in 1904 through the Co-operative Credit Committee Act. A need to take interest in it was felt due to its popularity. The initial steps have been made in the direction of founding cooperative societies and enlarging cooperative credit. But the progress remained unsatisfactory in the pre-independence period. Despite being in operation between 1951-52 that is for half a century, the cooperative credit formed only 3.1 percent of the total rural credit.

Structure of cooperative banks in India

Pic credits:Indiaessays

The vision of a cooperative bank

The  Fundamental vision is to become the first in customer satisfaction. To ensure adequate credit support and banking services for the economic development of the district, following the state

The mission of the cooperative bank

The main vision is to ensure the viability and sustainability of the Bank. The primary purpose is the integrated development of the district through much better banking and other related services.

Objectives of the cooperative bank

  • Firstly Engage in rural financing and micro financing
  • To remove the dominance of common man by middle man and money lenders
  • Ensure credit services to farmers at low rate of interest
  • Providing financial support to farmers and other needy people in rural  areas
  • Providing financial support to small scale industries and self employment driven people


The behavior of this bank is socio­economic. Plato once said, “One’s own betterment is included in the betterment of others. “The members of co-operative banks help the people and one other by consolidating savings and investments as a basis. But the Banks should make an attempt to collect more deposits from individuals and non-cooperative institutions and they should expand branches in their respective districts. Still there a long way to go!!

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Sandra Joseph
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