Cooperative banks

Cooperative banks are owned by their customers and follow the cooperative principle of one person, one vote. Co-operative banks are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members, and some participate in the wholesale markets for bonds, money and even equities.[1] Many cooperative banks are traded on public stock markets, with the result that they are partly owned by non-members. Member control is diluted by these outside stakes, so they may be regarded as semi-cooperative.

Cooperative banking systems are also usually more integrated than credit union systems. Local branches of co-operative banks select their own boards of directors and manage their own operations, but most strategic decisions require approval from a central office. Credit unions usually retain strategic decision-making at a local level, though they share back-office functions, such as access to the global payments system, by federating.

Some cooperative banks are criticized for diluting their cooperative principles. Principles 2-4 of the "Statement on the Co-operative Identity" can be interpreted to require that members must control both the governance systems and capital of their cooperatives. A cooperative bank that raises capital on public stock markets creates a second class of shareholders who compete with the members for control. In some circumstances, the members may lose control. This effectively means that the bank ceases to be a cooperative. Accepting deposits from non-members may also lead to a dilution of member control.

List of State Cooperative Banks in India:

Andaman and Nicobar State Co-operative Bank
Andhra Pradesh State Co-operative Bank
Arunachal Pradesh State Co-operative Apex Bank
Assam Co-operative Apex Bank
Bihar State Co-operative Bank
Chandigarh State Co-operative Bank
Chhattisgarh Rajya Sahakari Bank Maryadit
Delhi State Co-operative Bank
Goa State Co-operative Bank
Gujarat State Co-operative Bank
Haryana State Co-operative Apex Bank
Himachal Pradesh State Co-operative Bank
Jammu and Kashmir State Co-operativ Bank
Jharkhand State Co-operative Bank
Karnataka State Co-operative Apex Bank Bangalore
Kerala State Co-operative Bank
Madhya Pradesh Rajya Sahakari Bank Maryadit
Maharashtra State Co-operative Bank
Manipur State Co-operative Bank
Meghalaya Co-operative Apex Bank
Mizoram Co-operative Apex Bank
Nagaland State Co-operative Bank
Odisha State Co-Operative Bank
Pondichery State Co-operative Bank
Punjab State Co-operative Bank
Rajasthan State Co-operative Bank
Sikkim State Co-operative Bank
The Tamil Nadu State Apex Co-operative Bank
Telangana State Co-Operative Apex Bank Limited
Tripura State Co-operative Bank
Uttar Pradesh Co-operative Bank
Uttarakhand State Co-operative Bank
West Bengal State Co-operative Bank

Urban Cooperative Banks (UCBs)

List of Scheduled Urban Cooperative Banks in India:

Apna Sahakari Co-Op Bank Ltd
Ahmedabad Mercantile Co-Op Bank
Kalupur Commercial Coop. Bank
Mehsana Urban Co-Op Bank
Shivalik Mercantile Co-Op Bank
Nutan Nagarik Sahakari Bank
Rajkot Nagrik Sahakari Bank
Sardar Bhiladwala Pardi Peoples Coop Bank
Surat Peoples Coop Bank
Rajdhani Nagar Sahkari Bank
Adhyapaka Urban Co-operative Bank
Andhra Pradesh Mahesh Co-Op Urban Bank
Indian Mercantile Co-operative Bank
Abhyudaya Co-operative Bank
Bassein Catholic Co-operative Bank
Bharat Co-operative Bank (Mumbai)
Bharati Sahakari Bank
Bombay Mercantile Co-operative Bank
Citizencredit Co-operative Bank
Dombivli Nagari Sahakari Bank Ltd
Goa Urban Co-operative Bank
Gopinath Patil Parsik Janata Sahakari Bank
Greater Bombay Co-operative Bank
Jalgaon Janata Sahakari Bank
Janakalyan Sahakari Bank
Janalaxmi Co-operative Bank
Janata Sahakari Bank
Junagadh Commercial Co-operative Bank
Kallappanna Awade Ichalkaranji Janata Sahakari Bank
Kalyan Janata Sahakari Bank
Karad Urban Co-operative Bank
Mahanagar Co-operative Bank
Mapusa Urban Co-operative Bank of Goa
Nagar Urban Co-operative Bank
Nasik Merchant's Co-operative Bank
New India Co-operative Bank
NKGSB Co-operative Bank
Pravara Sahakari Bank
Punjab & Maharashtra Co-operative Bank
Rupee Co-operative Bank
Sangli Urban Co-operative Bank
Saraswat Co-operative Bank
Shamrao Vithal Co-operative Bank
Solapur Janata Sahakari Bank
Thane Bharat Sahakari Bank
The Kapole Co-operative Bank
TJSB Sahakari Bank
Zoroastrian Co-operative Bank
Nagpur Nagrik Sahakari Bank
Shikshak Sahakari Bank
Akola Janata Commercial Co-operative Bank
Akola Urban Co-operative Bank
Khamgaon Urban Co-operative Bank
Muneshwra swamy BANK
Eenadu Urban Co Operative Bank
Rohit Kataria Co-Operative Bank
Dakshin Barasat Service Co-Operative Society Private Limited; Dakshin Barasat, Kolkata
Sangli District Primary Teachers Bank Ltd, Sangli
Chartered Mercantile M.B. Ltd, Lucknow, U.P.
LIC of India Staff Co Operative Bank. H.O Pattom Thiruvananthapuram
Akhand Anand Co-Op Bank
Varchha Co-op Bank
The Surat District Co-Op Bank Ltd
The Sutex Co-Op Bank Ltd.
The Bardoli Nagarik Sahakari Bank Ltd.

Chambers of Commerce:

Chambers of commerce is voluntary associations of persons connected with commerce and industry. Their membership consists of merchants, brokers, bankers, industrialists, financiers etc.
Chambers of commerce is formed in the same way as associations, with the ultimate objective of promoting and protecting the interests of business community. But they differ from trade associations in that they do not confine their interests only to a particular trade or industry; but stand for the business community in a particular region, country, or even the world, as a whole.
Chambers of commerce act as spokesmen of business community and make suggestions to the government regarding legislations that will foster trade and industry. The constitution and composition of chambers of commerce vary from country to country. In most of the countries, they are voluntarily organised by businessmen; though the government maintains close contacts with them.
Membership in an individual chamber can range from a few dozen to well over 800,000, as is the case with the Paris Île-de-France Regional Chamber of Commerce and Industry. Some chamber organizations in China report even larger membership numbers. Chambers of commerce can range in scope from individual neighborhoods within a city or town up to an international chamber of commerce.

The Indian Chamber of Commerce, or ICC as it is popularly known, is the premier body of business and industry in Eastern and North-Eastern India facilitating Business Since 1925. The membership of the Chamber comprises several of the largest corporate groups in the country, with business operations all over the country and abroad. Set up by a group of pioneering industrialists led by Mr G D Birla, the Indian Chamber was closely associated with the Indian Freedom.

The Bengal Chamber of Commerce and Industry was set up in 1853. However, the Chamber's origins date back to 1833 when its founding forefathers came together to form the first association of its kind in the country, which was later formalized as the Bengal Chamber. For the last one and a half centuries, the Chamber has played a pioneering role as a helmsman, steering the evolution of Commerce and Industry in India.

Calcutta Chamber of Commerce
In 1830 some traders and craftsmen of Calcutta organised themselves to form the Calcutta Trades Association which was a new kind of commercial organization, the first of its kind, not only in the country, but also in the far East. The records of the Association show that the idea of business assembly was first mooted at a meeting held on the 5th July, 1830 attended by about 200 traders of Calcutta and Calcutta Traders Association was born under the aegis of Mr Samuel Smith who assumed the post of the president.

Bharat Chamber of Commerce (inception in the year 1900) Towards the end of Nineteenth Century, to strengthen the hands of the nascent Indian enterprise and consolidate the voice, of the traders of Burrabazar, the “Marwari Chamber of Commerce” was established at Calcutta. The Membership of the Chamber was, however, not confined to Marwaris only and Indian businessmen from all over Calcutta continued to join its membership and enjoy its support.
One of the important activities of the Chamber during the formative stage was arbitration to resolve disputes.
From its inception in the year 1900, the Chamber has taken active interest not only in the areas of direct interest for trade and industry, but also in several walks of public life of this country. The Government of the day referred many important questions to the Chamber for its opinion since inception.
The Chamber has all along attempted to improve business methods and practices on better standard and codes, and a very large number of businessmen having diverse interest have always looked to the Chamber for advice and guidance. Before independence, there were only a handful of organizations in the country to offer these services fearlessly and the Chamber excelled in this regard. The large volume of activities of the Chamber, particularly in the forties, outlined in this document is the evidence of the Chamber’s concern not only in the welfare and well being of its members, but also on the social issues during war, famine or political atrocities. Since independence, the Chamber has always tried to stand by the national Governments at the Centre and in the State, in their efforts to build up the economy of the country on the ideals of a Welfare Society.

Objectives of Chamber of Commerce

Chambers of commerce seeks to achieve the following objectives:
i. To protect the interests of business community as a whole.
ii. To develop a sense of cooperation among their members.
iii. To collect and supply useful information to the members.
iv. To advise the Government on matter relating to trade, commerce and industry.
v. To consult the Central and State Governments on matters relating to trade, commerce and industry.
vi. To assist the Government in making budget by expressing views on different sectors of the country's economy.
vii. To bring to the notice of the Government the impact of various laws and regulations on business.
viii. To make the members aware of changes in the field of technology, marketing, financing, human resources, etc.
ix. To talk to foreign businessmen and explore the areas where Indian businessmen can cooperate and participate.
x. To draw plans and projects for encouraging the growth of trade and commerce in the country.
xi. To carry on research for the benefit of members.
xii. To protect the environment from industrial pollution.
xiii. To organise educational and training facilities for the members.
xiv. To provide legal advice to members.
xv. To act as arbitrators in order to solve disputes among the members.

Reserve Bank of India

Establishment:
The Reserve Bank of India was established in 1935 under the provisions of the Reserve Bank of India Act, 1934 in Calcutta, eventually moved permanently to Mumbai. Though originally privately owned, was nationalized  in 1949.

Organisation and Management:
The Reserve Bank”s affairs are governed by a central board of directors. The board is appointed by the Government of India for a period of four years.

Full-time officials :
Governor and not more than four Deputy Governors. The Governor of RBI is Raghur. There are 3 Deputy Governors, Shri B.P. Kanungo, Shri Viral V Acharya and Shri N.S. Vishwanathan

Nominated by Government:  Ten Directors from various fields and two government Officials.

Others:  Four Directors – one each from four local boards.

Main Role and Functions of RBI

Monetary Authority: 
Formulates, implements and monitors the monetary policy for
A)  maintaining price stability, keeping inflation in check ;
B) ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system: Lays out parameters of banking operations within which the country”s banking and financial system functions for-
A) maintaining public confidence in the system,
B) protecting depositors’ interest ;
C) providing cost-effective banking services to the general public.

Regulator and supervisor of the payment systems:
A) Authorises setting up of payment systems;
B) Lays down standards for working of the payment system;
C)lays down policies for encouraging the movement from paper-based payment systems to electronic modes of payments.
D) Setting up of the regulatory framework of newer payment methods.
E) Enhancement of customer convenience in payment systems.
F) Improving security and efficiency in modes of payment.

Manager of Foreign Exchange: RBI manages forex under the FEMA- Foreign Exchange Management Act, 1999.  in order to
A) facilitate external trade and payment
B) promote development of foreign exchange market in India.

Issuer of currency: RBI issues and exchanges currency as well as destroys currency & coins not fit for circulation to ensure that the public has adequate quantity of supplies of currency notes and in good quality.
Developmental role : RBI performs a wide range of promotional functions to support national objectives. Under this it setup institutions like NABARD, IDBI, SIDBI, NHB, etc.
Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
Banker to banks: An important role and function of RBI is to maintain the banking accounts of all scheduled banks and acts as banker of last resort.
Agent of Government of India in the IMF.
Offices and Training Centres:
RBI has 19 regional offices, most of them in state capitals and 9 Sub-offices.
Has five training establishments – Two, College of Agricultural Bankingand Reserve Bank of India Staff College are part of the Reserve Bank. Other three are autonomous , National Institute for Bank Management;  Indira Gandhi Institute for Development Research (IGIDR);  Institute for Development and Research in Banking Technology (IDRBT).[/box]
Monetary Policy of RBI :
As discussed earlier, RBI executes Monetary Policy for Indian Economy. The RBI formulates monetary policy twice a year. It reviews the policy every quarter as well. The main objectives of monitoring monetary policy are:
Inflation control
Control on bank credit
Interest rate control
Quantitative Measures

Quantitative measures refer to those measures that affect the variables, which in turn affect the overall money supply in the economy.
Instruments of quantitative measures:
1. Bank rate −The rate at which central bank provides loan to commercial banks is called bank rate. This instrument is a key at the hands of RBI to control the money supply in long term lending. At present it is 8.75%.
Increase in the bank rate will make the loans more expensive for the commercial banks; thereby, pressurizing the banks to increase the rate of lending. The public capacity to take credit at increased rates will be lower, leading to a fall in the volume of credit demanded.
The reverse happens in case of a decrease in the bank rate. This increases the lending capacity of banks as well as increases public demand for credit and hence will automatically lead to a rise in the volume of credit flowing in the economy.

2. Liquidity Adjustment Facility-
Reserve Bank of India’s  LAF helps banks to adjust their daily liquidity mismatches. LAF has two components – repo (repurchase agreement) and reverse repo.

(i) Repo Rate: Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks against securities. When the repo rate increases borrowing from RBI becomes more expensive.Repo rate is always higher than the reverse repo rate. At present it is 7.75%

(ii) Reverse Repo Rate:  It is the exact opposite of repo. In a reverse repo transaction, banks purchase government securities form RBI and lend money to the banking regulator, thus earning interest. Reverse repo rate is the rate at which RBI borrows money from banks.The banks use this tool when they feel that they are stuck with excess funds and are not able to invest anywhere for reasonable returns. At present it is 6.75%

(iii)Marginal Standing Facility (MSF):  is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12). The MSF would be a penal rate for banks and the banks can borrow funds by pledging government securities within the limits of the statutory liquidity ratio SLR.

The scheme has been introduced by RBI for reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system. Currently, it is 8.75%

2. Varying reserve ratios –
 The reserve ratio determines the reserve requirements that banks are liable to maintain with the central bank. These tools are:
(i) Cash Reserve Ratio (CRR)
It refers to the minimum amount offunds in cash( decided by the RBI) that a commercial bank has to maintain with the Reserve Bank of India, in the form of deposits. An increase in this ratio will eventually lead to considerable decrease in the money supply. On the contrary, a fall in CRR will lead to an increase in the money supply. Currently, it is 4%.
(ii) Statuary Liquidity Ratio (SLR)
SLR is concerned with maintaining the minimum percentage( fixed by RBI) of assets in the form of non-cash with itself. The flow of credit is reduced by increasing this liquidity ratio and vice-versa. As SLR rises the banks will be restricted to pump money in the economy, thereby contributing towards decrease in money supply. The reverse case happens if there is a fall in SLR, it increases the money supply in the economy. Currently SLR is 21.5%.


7 Major Functions of the Reserve Bank of India are as follows:

1. Issue of Bank Notes:
The Reserve Bank of India has the sole right to issue currency notes except one rupee notes which are issued by the Ministry of Finance. Currency notes issued by the Reserve Bank are declared unlimited legal tender throughout the country.
This concentration of notes issue function with the Reserve Bank has a number of advantages:
(i) it brings uniformity in notes issue;
(ii) it makes possible effective state supervision;
(iii) it is easier to control and regulate credit in accordance with the requirements in the economy; and
(iv) it keeps faith of the public in the paper currency.

2. Banker to Government:
As banker to the government the Reserve Bank manages the banking needs of the government. It has to-maintain and operate the government’s deposit accounts. It collects receipts of funds and makes payments on behalf of the government. It represents the Government of India as the member of the IMF and the World Bank.

3. Custodian of Cash Reserves of Commercial Banks:
The commercial banks hold deposits in the Reserve Bank and the latter has the custody of the cash reserves of the commercial banks.

4. Custodian of Country’s Foreign Currency Reserves:
The Reserve Bank has the custody of the country’s reserves of international currency, and this enables the Reserve Bank to deal with crisis connected with adverse balance of payments position.

5. Lender of Last Resort:
The commercial banks approach the Reserve Bank in times of emergency to tide over financial difficulties, and the Reserve bank comes to their rescue though it might charge a higher rate of interest.

6. Central Clearance and Accounts Settlement:
Since commercial banks have their surplus cash reserves deposited in the Reserve Bank, it is easier to deal with each other and settle the claim of each on the other through book keeping entries in the books of the Reserve Bank. The clearing of accounts has now become an essential function of the Reserve Bank.

7. Controller of Credit.
Since credit money forms the most important part of supply of money, and since the supply of money has important implications for economic stability, the importance of control of credit becomes obvious. Credit is controlled by the Reserve Bank in accordance with the economic priorities of the government.