Definition of Co-operative bank

Devine defines a Co-operative Bank as, a mutual society formed composed and
governed by the working people themselves for encouraging regular savings and grinding
small loans on easy terms of interest and repayment
FEATURES OF CO-OPERATIVE BANK

They are organized and managed on the principles of Co-operation-self-help

and mutual help.

They function on no profit no loss basis.
Co-operative Bank performs all main banking functions of deposit mobilization,

supply of credit and provisions of remittance facilities.

Co-operative Bank does banking business mainly in the agricultural and rural

sector.
Co-operative Banks belongs to money market as well as capital market.
The sources of their funds are:
o Central and State Government.
o The RBI and NABARD.
o Other Co-operative Institution.
o Ownership funds.
o Deposits and debenture issues.
Co-operative Banks have federal structure of three tier linkage.
Some Co-operative Banks are Scheduled Banks and while other non-Scheduled

Banks.
Co-operative Banks accept current saving and fixed or time deposits from

individuals and institution.