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What is the difference between a …

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What is the difference between a bank and a cooperative ?
  • 1 answers

Yogita Ingle 7 years ago

1. Commercial banks operate with the approach of commercialization while Co-operative banks woks on the principle of co-operation. That is why state Co-operative banks get loans at least 2% cheaper from the Reserve bank of India.
2. Commercial banks have been constituted by an act passed by the parliament while Co-operative banks are constituted by different sates under various acts related to Co-operative societies of various states.
 3. Co-operative banks have three tier set up in India i.e. state Co-operative at the apex level, central/district co-operative  banks at the middle level and primary co-operative banks at the lower level while commercial banks don’t have any such tier system in India.

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