Types Of Co-operative Banks

There are three types of co-operative banks operating in our country. They are primary credit societies, central co - operative banks and state co - operative banks. These bank are organized at three levels. village or town level, district level and state level.

State Co-operative Banks:

These are the apex (highest level) co-operative banks in all the states of the country. They mobilise funds and help in its proper channelisation among various sectors, The money reaches the individual borrowers from the state co-operative banks through the central co-operative banks and the primary credit societies

Central Co-operative Banks:

These banks operate at the district level having some of the primary credit societies belonging to the same district as the members. These banks provide loans to their members (i.e., primary credit societies) and function as a link between primary credit societies and state co-operative banks.

Primary Credit Societies:

These are formed at the village or town level with borrower and non-borrower members residing in one locality. The operations of each society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.

Specialised Banks:

There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are called specialised banks. Let us know about them.

Export Import Bank of India (EXIM Bank):

EXIM Bank was established in year 1982. If you want to set up a business for exporting products abroad or importing products from foreign countries tor sale in our country. EXIM bank can provide you the required support and assistance. The bank grants loans to exporters and importers and also provides information about the international market. It gives guidance about the opportunities for export or import, the risks involved in it and the competition to be faced, etc.

Small Industries Development Bank of India (SIDBI):

SIDBI was established on the year $2^n^d$ April, 1990. It provides loan on easy terms to small scale business unites or industry including the newly established. It also finances modernisation of small - scale industrial units, use of new technology and market activities. The aim and focus of SIDBI is to promote, finance and develop small-scale industries.

National Bank for Agriculture and Rural Development (NABARD):

NABARD was established on 12h July, 1982. It is a central or apex institution for financing agricultural and rural sectors. It a person is engaged in agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit. both short - term and long - term, through regional rural banks. It provides financial assistance. especially. to co-operative credit, in the field of agriculture, small - scale industries, cottage and village industries handicrafts and allied economic activities in rural areas.