BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To act as competitors to commercial banks
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To be solely for the agriculture sector
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To start self help groups
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To replace moneylenders and indigenous bankers
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Detailed explanation-1: -Cooperative banks lend as well as accept deposits. They are established with the aim of funding agriculture and allied activities and financing village and cottage industries. National Bank for Agriculture and Rural Development (NABARD) is the apex body of cooperative banks in India.
Detailed explanation-2: -The history of Indian cooperative banking started with the passing of Cooperative Societies Act in 1904. The objective of this Act was to establish cooperative credit societies “to encourage thrift, self-help and cooperation among agriculturists, artisans and persons of limited means.”
Detailed explanation-3: -State cooperative banks are an important part of the Indian banking system, providing financial services to rural and low-income populations across the country. They are often the primary source of credit for agricultural and allied activities, small-scale industries, and other small businesses.