Urban Cooperative Banks

 

Urban Cooperative Banks

·       The term Urban Co-operative Banks (UCBs) refers to primary cooperative banks located in urban and semi-urban areas. Until 1996, these banks were only permitted to lend money for non-agricultural purposes.

·       This distinction is no longer valid today. Traditionally, these banks were centred on communities, localities, and workplace groups. They primarily gave loans to small borrowers and businesses. Their scope of operations has expanded significantly since then.

Significance of Cooperative Banks in Urban Areas





·       Cooperative banks in cities have been around for longer than a century and are primarily concerned with serving their own communities as providers of financial services.

·       Their area of expertise is providing services to customers who fall into the lower middle class and have little resources, in addition to persons who are self-employed and small business owners.

·       Cooperative banks in urban areas play a significant part in the process of attracting deposits and providing finance to the small-borrower sector.

·       This sector includes small-scale businesses, professionals, and retailers, among other types of businesses.

·       The provision of financial support to the rural sector has been significantly aided by the activities of cooperative banks.

·       Because UCBs are a tried-and-true model that has been validated for providing services to the unorganised sector in all different kinds of urban centres, they are ideally suited to be duplicated in large numbers throughout all states.

Conclusion

·       From its inception to the present day, the thrust of UCBs has been to mobilise savings from middle and low-income urban groups and to provide credit to their members, many of whom belonged to the weaker sections.

 




Comments

Post a Comment

Popular posts from this blog

Quantum Nonlocality

Image
  Quantum Nonlocality: §   While classical physics assumes locality, the principle of nonlocality is a feature of many interpretations of quantum mechanics. §   Nonlocality describes the apparent ability of objects to instantaneously know about each other’s state, even when separated by large distances (potentially even billions of light years), almost as if the universe at large instantaneously arranges its particles in anticipation of future events. §   This is in direct contravention of the "principle of locality" (or what Einstein called the "principle of local action"), the idea that distant objects cannot have direct influence on one another, and that an object is directly influenced only by its immediate surroundings, an idea on which almost all of physics is predicated. §   Non locality occurs due to the phenomenon of entanglement, whereby particles that interact with each other become permanently correlated, or dependent on each other’s states a...
Read more

UPSC CSE 2025- Mains Results Declared

UPSC CSE 2025- Mains Results Declared The Union Public Service Commission (UPSC) has declared the results of the UPSC Civil Services Examination (CSE) Mains 2024 on December 9, 2024. Candidates who appeared for the CSE Mains exam can check their results on the official website, upsc.gov.in.                                                   UPSC CSE 2025- Mains Results Declared
Read more

MISSION KARMAYOGI

Image
  MISSION KARMAYOGI Why in the news? §   Recently, Capacity Building Commission (CBC), launched in 2021, as part of National Programme for Civil Services Capacity Building (NPCSCB) - Mission Karmayogi has completed three years. Context §   Recently, Indian Institute of Public Administration assessed the impact by seeking inputs on trained staff and reported increased proficiency in data analytics and e-governance tools under Mission Karmayogi. Mission Karmayogi §   India’s ambitious vision of becoming a global manufacturing hub, a critical exporter of value-added services, and a mass supplier of human skills to an ageing developed world by 2047 hinges on efficient governance and competent civil services. §   Recognising this, the Prime Minister of India launched Mission Karmayogi, the National Programme for Civil Services Capacity Building to transform India’s three million civil servants into citizen-centric, future-ready, and result-oriented ‘K...
Read more