ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financial cooperatives are nonprofit financial institutions that offer banking services to members. Financial cooperatives may offer lower rates on loans and higher dividends on investments. Financial cooperatives are often local organizations and were originally established to serve low-income populations.

Detailed explanation-2: -A credit union is a nonprofit financial institution that’s owned by the people who use its financial products. Credit union members can access the same kinds of products and services as offered by a traditional bank, such as credit cards, checking and savings accounts and loans.

Detailed explanation-3: -The Banking Regulations Act of 1949 and the Banking Laws (Co-operative Societies) Act, of 1955 govern the cooperative banks in India. Cooperative banks run with the motto of “ no profit, no loss”.

Detailed explanation-4: -A financial institution that is owned and operated by its members. The goal of a financial cooperative is to act on behalf of a unified group as a traditional banking service. These institutions generally offer services with competitive rates in the areas of insurance, lending and investment.

Detailed explanation-5: -There are a variety of unions, and each is opened for different purposes, such as state employees’ credit union, federal navy credit union, digital federal credit union, Boeing employees’ credit union, etc.