As we all know, the cooperative banks in India are passing through a difficult phase and their performance is NOT as glamorous as that of the commercial banks today. What went wrong with cooperative banks?begin{enumerate}item The cooperative banks disbursed credit on the loans on demand mostly without proper guarantees and documents. Hence repayments were always at the mercy of the borrowers and up to some extent on good crops.item The cooperative banks are mostly under the supervisory control of the Panchayats, which are not professionally qualified to control such institutions.item Cooperative Banks do not get any relief package from the Govt. Hence they have to manage their affairs on their own resources only.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As we all know, the cooperative banks in India are passing through a difficult phase and their performance is NOT as glamorous as that of the commercial banks today. What went wrong with cooperative banks?

A	Only 2
B	Only 1
C	Only 3
D	All the above

Explanation:

Detailed explanation-1: -Limited Coverage: The size of the cooperative banks is very small. Most of these societies only have a small number of members, and they only operate in one or two villages. As a result, their resources remain limited, which makes it impossible for them to expand their means and extend their area of operations.

Detailed explanation-2: -In India, co-operative banks play a crucial role in rural financing, with funding of areas under agriculture, livestock, milk, personal finance, self-employment, setting up of small-scale units among the few focus points for both urban and rural cooperative banks.

Detailed explanation-3: -They are also regulated by the Reserve Bank of India (RBI). They are involved in financing rural sectors such as farming, poultry, and live stock and so on. They also render their services to industries, small scale units, home finance, personal finance, etc. in rural as well as urban areas.

There is 1 question to complete.