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Comparative Study of Cooperative Bank Punjab & Haryana Region

Navjot Kaur, Harmanjot Singh Brar

INTRODUCTION

Cooperative Banking

A cooperative bank is a financial institution that is owned by its members, who also double as the bank's owners and clients. People with a same interest from the same local or professional community frequently found it. It was established to support the social uplift of economically underprivileged groups and to shield them from the grasp of predatory lenders who give out loans to the needy at exorbitant interest rates. The ideas of cooperation, mutual aid, democratic decision-making, and open membership inform the co-operative structure's design. It adheres to the "no profit, no loss" and "one shareholder, one vote" tenets.

The Cooperative Societies Act of 1912 governs the registration of cooperative banks. These are governed under the Banking Regulation Act of 1949 and the Banking Laws (Application to Cooperative Societies) Act of 1965, which are both administered by the Reserve Bank of India and the National Bank for Agriculture and Rural Development (NABARD).

Cooperative banks differ from commercial banks in terms of structure, administration, interest rates , functional range, goals, and values.