How Many Urban Cooperative Banks are there in India in 2020?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
A total of 1,539 Urban Cooperative Banks are there in India in 2020. These cooperative banks can be found in urban and semi-urban areas. The owners and clients of a cooperative bank are its members. It is a small financial institution that is registered under the States Cooperative Societies Act and is governed by the Reserve Bank of India (RBI).
Table of content
Urban Cooperative Banks in India (2020)
The Co-operative Banks have lately made headlines due to restrictions placed by the RBI on one of the top banks, preventing them from making any cash withdrawals. The Punjab and Maharashtra Co-operative Bank event (PMC) has called into doubt the dependability of these financial institutions.
Characteristics of Cooperative Banking in India
- These banks are owned by their members and are governed by a democratically elected Board of Directors in accordance with the principle of “one person, one vote.”
- Low-interest agricultural loans are available from cooperative banks to farmers.
- Lending money to people in need in remote areas with few banking facilities.
- Following the established rules, the annual profit is divided among the cooperative’s members, with a portion going toward financial reserves and other resources.
Summary:
How Many Urban Cooperative Banks are there in India in 2020?
There were 1,539 urban cooperative banks are there in India in 2020. Urban Co-operative Banks (UCBs) are primary cooperative banks that are situated in urban and semi-urban areas. These banks were restricted from making loans until 1996 to non-agricultural uses only.
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