Paisa Sherpa - Personal finance and investment guide

What do you mean by co-operative bank? Is co-operative bank private or government? Is co-operative bank under RBI regulation? Many such doubts might have popped up in your minds recently due to the news of RBI restrictions on the Mumbai based New India Co-operative Bank and the Rs. 122 Crore financial fraud by one of its employees.   How safe are Co-operative banks? Is it poor financial decision making to keep deposits in Co-operative banks? We want to answer all your doubts, so read on. Co-operative Banks  Co-operative banks started in the India with the noble purpose of offering financial solutions to rural and semi-urban areas. The co-operative banks have members who are also its customers that own the bank. The decision making is done in co-operational manner. The co-operative banks are regulated both by the RBI and the Registrar of co-operative societies of respective state governments. The RBI regulates the banking aspects like risk control, lending, etc. and the st...