Reserve Bank of India (RBI) imposed certain restrictions on amount withdrawals from the Punjab and Maharashtra Cooperative (PMC) Bank, that is one of the largest urban cooperative banks.

How are cooperative Banks defined and classified ?

  1. Cooperative banks owe their origin to the concept of Cooperative credit societies where members of a community pool funds together to extend loans to each other.


Cooperative Banks

Rural cooperative credit institutions

Urban cooperative credit institutions

Short term

Long term


Non Scheduled

State Co-operative Banks, Primary

District Central Co-operative Banks,

Agricultural Credit Societies.

State Cooperative Agriculture and Rural Development Banks (SCARDBs)

  1. Multi state
  2. Those operating in a single state.

What are the Urban Cooperative Banks and what are the related provisions ?

  1. The registration of UCBs is done under the hood of Cooperative Societies and falls under the  provisions of, either the State Cooperative Societies Act of the concerned state or the Multi State Cooperative Societies Act, 2002.
  2. They are tasked with providing regular banking and financial services.
  3. They are located most in urban or semi urban areas.
  4. Although they are different from Commercial Banks, their deposits are covered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC).
  5. They fall under the regime of dual regulation i.e. RBI and Registrar of Cooperative Societies.
  6. Regulation: The UCBs in India are under dual regulation, by the Reserve Bank of India (RBI) and the Registrar of Cooperative Societies (RCS) under the government.

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