Importance Of Cooperative Bank

operative bank is elected by members of cooperative societies and the State Govt controls their activities.

Co-operative banks can be further divided into following categories as –

(a) Primary Urban Co-op Banks,

(b) Primary Agricultural Credit Societies,

(c) District Central Co-op Banks

(d) State Cooperative Banks (SCBs)

(e) Land Development Banks

2.3.12 SPECIALISED BANKS: There are some banks, which provide services and support for setting up business in specific areas of activity. EXIM (Export Import Bank of India) Bank, SIDBI (Small Industries Development Bank of India) and NABARD (National Bank for Agricultural and Rural Development) are examples of such banks. These banks engage themselves in some specific area or activity and thus,

The main responsibility of the bank is to regulate the banking industry and to support for implementation of monetary policy towards smooth run of economy by the way of controlling the total quantity of supply of money including cash and bank deposits of the country. For example, the Federal Reserve may purchase government securities from commercial banks during slower periods of economic activity and giving them more money to lend, thus expanding the economy. It also performs a variety of services for other banks. For example, it may give emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by different banks.

2.4 MAJOR DIFFERENCES BETWEEN SCHEDULED COMMERCIAL BANK AND CO-OPERATIVE: Both commercial and cooperative banks in India are scheduled banks and perform similar functions such as deposit banking and advances. However they have certain differences in their structure and supervision.

- Commercial banks are owned by share-holders and cooperative banks by members of cooperative societies.

- Both are controlled by Banking Regulation Act 1949. However co-operative banks are likewise secured under the Co-operative Act, 1912 and Banking Laws Act, 1965.

- Commercial Banks are regulated by RBI whereas Cooperative Banks are regulated by

ATMs distinguish the client by confirming ATM card with an attractive stripe or a plastic keen card with a chip, which contains a one of a kind card number and some security information such as an expiration date or CVV etc. Authentication or, access is provided to the customer with successful verification of personal identification number (PIN).

• Bounced Cheque: when the bank has not enough funds in the relevant account of the issuer of cheque, mismatch of authorised signatory or, mismatch of any basic inputs given in cheque, such cheque is bounced and the bank returns the cheque to the account holder.

• Bank Rate: Bank rate is the rate fixed by the central bank (i.e. RBI) on which the money lends by banks or financial institutions. The deposited amount raised if bank rate goes up and