Co-operative Banks in India: Functioning and Reforms

Though much smaller when compared to commercial banks, co-operative banks - both urban and rural - are an integral part of India's financial system. They have an extensive branch network and reach out to people in remote areas. They have traditionally played an important role in creating banking habits among the lower and middle-income groups and in strengthening the rural credit delivery system. Urban co-operative banks (UCBs) - also referred to as primary cooperative banks - play an important role in meeting the growing credit needs of urban and semi-urban areas of India. UCBs mobilize savings from the middle and lower income groups and purvey credit to small borrowers, including weaker sections of the society. Scheduled UCBs are under closer regulatory and supervisory framework of the Reserve Bank of India. This book focuses on India's UCBs, providing a vivid account of the functioning of co-operative credit institutions, including recent reforms. It includes a case study of the working of UCBs in the Indian state of West Bengal.