Cooperative Banks in India, Types and Significance
Subham Sahoo28 Aug, 2025
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Cooperative Banks in India refer to the financial institutions that work on the principle of cooperation and mutual benefit for the members. Such banks belong to those members who are both the owners and customers of these banks. All the cooperative banks in India are managed by the National Bank for Agriculture and Rural Development.
Cooperative Banks in India offer different financial services, including lending, accepting deposits, etc. Being a cooperative bank, the primary motive is to have the cooperation of the stakeholders.
What is Cooperative Bank in India?
A Cooperative Bank in India is a financial institution registered under the State Cooperative Societies Acts or the Multi-State Cooperative Societies Act, 2002. These banks are owned by the members, who are their customers.
As per the data available with RBI and NABARD, the number of different types of cooperative banks is summarized as follows:
| Types | Total Numbers |
| Urban Cooperative Banks | 1457 |
| State Cooperative Banks | 34 |
| District Central Cooperative Banks | 351 |
| Industrial Cooperative Bank | 1 |
Structure of Cooperative Banks in India
In India, the Cooperative Banks are classified into two types, namely Urban Cooperative Banks (UCBs) and Rural Cooperative Banks (RCBs). They are further sub-categorized into different types of banks. The difference between UCBs and RCBs can be summarized in the table below:
| Structure of Cooperative Banks in India | |
| Urban Cooperative Banks | Rural Cooperative Banks |
| They operate in urban and semi-urban areas | They operate primarily in rural areas |
| They mainly lend to small borrowers and businesses. | They focus on serving the financial needs of people in rural areas. |
| Based on their regulatory regime, they are categorized into two types – Scheduled Banks and Non-Scheduled Banks | Depending on the type of lending, they are divided into 2 sub-categories: Short-Term Structures and Long-Term Structures |
Structure of Rural Cooperative Banks
Based on the type of structures, the Rural Cooperative Banks are further divided into Short-Term Structures and Long-Term Structures. The types of banks or financial institutions included under these categories are as follows:
|
Structure of Rural Cooperative Banks |
|
|
Short-Term Structures |
Long-Term Structures |
|
State Cooperative Banks (SCBs) |
Standard Cooperative Agriculture and Rural Development Banks (SCARDBs) |
|
District Central Cooperative Banks (DCCBs) |
Primary Cooperative Agricultural and Rural Development Bank (PCARDBs) |
|
Primary Agricultural Credit Societies (PACS) |
|
Significance of Cooperative Banks in India
Cooperative Banks in India play a very important role in the Indian economy owing to the nature of their work. They work towards lending financial services to people primarily in the rural and semi-urban areas, thereby contributing to financial inclusion. The significance of the cooperative banks can be summarized as follows:
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Cooperative Banks offer easy access to loans and credits to customers at a very low rate of interest.
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These banks contribute to promoting financial inclusion by reaching out to the unbanked and the underbanked sections of society.
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They also offer deposit accounts to their customers with tailored needs so as to encourage saving habits among the common masses in rural areas.
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Cooperative Banks seem to have a better understanding of the needs of the rural people and thus play a significant role in funding various agricultural and rural development activities.
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In the rural areas, cooperative banks act to promote financial literacy by educating the customers about various financial services so that they can make informed decisions.
Cooperative Banks in India 2025
Almost every state and union territory in India has its Cooperative Bank, which is managed and governed by the National Bank for Agriculture and Rural Development (NABARD). The motto of the cooperative banks in India is “No profit, No Loss”. The Anyonya Cooperative Bank is the first cooperative bank in India, established in Vadodara in 1889.
The list of some of the cooperative banks in India is provided in the table below:
| List of Cooperative Banks in India | |
| Sr.No | Name of the Bank |
| 1. | The Andhra Pradesh State Co-operative Bank Ltd. |
| 2. | The Arunachal Pradesh State Co-operative Apex Bank Ltd. |
| 3. | The Assam Co-operative Apex Bank Ltd. |
| 4. | The Bihar State Co-operative Bank Ltd |
| 5. | The Chandigarh State Co-operative Bank Ltd. |
| 6. | The Chhattisgarh Rajya Sahakari Bank Maryadit |
| 7. | The Delhi State Co-operative Bank Ltd. |
| 8. | The Goa State Co-operative Bank Ltd |
| 9. | Gujarat State Co-operative Bank Ltd. |
| 10. | The Haryana State Co-operative Apex Bank Ltd. |
| 11. | The Himachal Pradesh State Co-operative Bank Ltd. |
| 12. | The Jammu and Kashmir State Co-operative Bank Ltd. |
| 13. | Jharkhand State Co-operative Bank Ltd. |
| 14. | The Karnataka State Co-operative Apex Bank Ltd. |
Cooperative Banks in India FAQs
What are Cooperative Banks in India?
What are the main types of Cooperative Banks in India?
What is the significance of Cooperative Banks in India?
Who regulates Cooperative Banks in India?
Which was the first Cooperative Bank in India?
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