Q. How are cooperative banks different from commercial banks? Highlight their role in revolutionizing the prospects of rural credit. (150 words)
12 Aug, 2020 GS Paper 3 EconomyThe differences between commercial and cooperative banks are as follows:
Cooperative Banks | Commercial Banks |
Cooperative banks work on the principle of cooperation | Commercial bank work on the principle of profit-making |
Cooperative banks are owned and operated by members, who are its customers | Commercial banks are owned by the and private individuals |
Cooperative banks are constituted by different states under different acts | Commercial banks are constituted by a uniform act passed by the parliament |
Cooperative banks have 3 tier system- apex level, district level and primary cooperatives | Commercial banks have no such hierarchy |
Cooperative banks can not open their branch in foreign countries | Commercial banks can open their branch in foreign countries |
Role in Revolutionizing the Prospect of Rural Credit