What is the structure of Development Banks in India?

Answer 1

Credit cooperatives are the oldest and most numerous of all the types of cooperatives in India. The cooperative credit institutions in the country may be broadly classified into urban credit cooperatives and rural credit cooperatives. There are about 2090 urban credit cooperatives and these societies together constitute for about 10 percent of the aggregate banking business and therefore regarded as an important segment of the banking system. The urban credit cooperatives are also popularly known as Urban Cooperative Banks. The rural credit cooperatives may be further divided into short-term credit cooperatives and long-term credit cooperatives. With regard to short-term credit cooperatives, at the grass-root level there are around 92,000 Primary Agricultural Credit Societies (PACS) dealing directly with the individual borrowers. At the central level (district level) District Central Cooperative Banks (DCCB) function as a link between primary societies and State Cooperative Apex Banks (SCB). It may be mentioned that DCCB and SCB are the federal cooperatives and thus the objective is to serve the member cooperatives. As against three-tier structure of short-term credit cooperatives, the long-term cooperative credit structure has two tiers in many states with Primary Cooperative Agriculture and Rural Development Banks (PCARDB) at the primary level and State Cooperative Agriculture and Rural Development Bank at the state level. However, some states in the country have unitary structure with state level cooperative operating with through their own branches and in one state an integrated structure prevails. The organizational structure of the credit cooperatives in India is illustrated in chart I. Interestingly, under the Banking Regulation Act 1949, only State Cooperative Apex Banks, District Central Cooperative Banks and select Urban Credit Cooperatives are qualified to be called as banks in the cooperative sector. In other words, only these banks are licensed to conduct full-fledged banking business.

The Co-operative Banks function in India on State Levels. Most of the Rural Co-operative banks function on Three-Tier and the Urban banks function on Two-Tier. At the National Level there is NABARD to organise the Agricultural Co-operatives. Also there is National Co-operative Union of India, as an apex instituion at National Level.

The Reserve Bank of India controls the Co-operative Banks that falls under the Banking Regulation Act of 1949.

Answer 2

1.Reserve Bank of India (Central Bank)

2.Commercial Banks

3.Development Banks

4.Exim Bank

5.Co-operative Banks

6.Regional Rural Banks

7.National Bank for Agriculturul and Rural Development

8.Land Development Banks

Answer 3

What is the structure of Development Banks in India?