Central Co-operative Banks and their Direct Contact with State Co-operative Banks

Central co-operative banks are financial institutions that provide credit and other financial services to co-operatives and their members. They operate at the district level and are the apex institutions of the co-operative credit structure in India. The main objective of central co-operative banks is to mobilize resources and channel them to the primary co-operative societies in their district.

Direct Contact with State Co-operative Banks

Central co-operative banks have a direct contact with state co-operative banks. State co-operative banks are the second-tier co-operative credit institutions in India, and they provide credit and other financial services to central co-operative banks. The relationship between central co-operative banks and state co-operative banks is one of a borrower and lender. Central co-operative banks borrow funds from state co-operative banks and lend them to primary co-operative societies and their members.

Functions of State Co-operative Banks

State co-operative banks have several functions, including:

1. Mobilizing resources from the public and other financial institutions.

2. Providing credit and other financial services to central co-operative banks.

3. Providing loans and advances to primary co-operative societies and their members.

4. Providing training and guidance to primary co-operative societies.

5. Promoting co-operative education and development.

Conclusion

In conclusion, central co-operative banks are in direct touch with state co-operative banks. State co-operative banks are the main source of funds for central co-operative banks, and they play a crucial role in the co-operative credit structure in India.

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