Here we just look at the types of banks in India ## All Co-operatives ### Structure 1. Non-Credit Cooperatives 2. Credit Cooperatives 1. Urban Cooperatives 1. Primary Cooperative Banks, popularly known as Urban Cooperative Banks (UCBs) or Primary (Urban) Co-operative Banks (UCBs), are classified as scheduled or non-scheduled, based on ^b0606a 1. whether they are included in the second schedule of the Reserve Bank of India Act, 19342; 1. [Scheduled Urban Cooperative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/schedulecoop.pdf) 2. [Non-Scheduled Urban Cooperative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/nonschedulecoop.pdf) 2. and their geographical outreach in terms of single-state or multi-state presence. 1. multi-state UCBs 2. single-state UCBs 2. Other Urban Credit Cooperatives/Urban Cooperative Credit Societies are (Salary Earners’ Societies, Urban Cooperative Credit Societies (Non-Agricultural), Women Cooperative Credit Societies, and Cooperative Thrift and Credit Societies, etc.) 2. Rural Co-operatives (RCCs) ^20d2f6 1. Short-term Co-operatives 1. State Co-operative Banks (StCBs or SCBs) - They finance DCCBs and PACS 1. [Scheduled State Co-operative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/SCCB20141702.pdf) 2. [Non-Scheduled State Co-operative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/NSCB20141402.pdf) 2. District Central Co-operative Banks (DCCBs), 3. Primary Agricultural Credit Societies [(PACS)](https://www.cooperation.gov.in/en/about-primary-agriculture-cooperative-credit-societies-pacs) - They are not registered as banks, under the Banking Regulation Act, 1949, and rely on DCCBs for funds 2. Long-term Co-operatives (formerly known as Land Development Banks which were known as Land Mortgage Bank until 1964) 1. State Co-operative Agriculture and Rural Development Banks (SCARDBs), 2. Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) 3. SCARDBs primarily borrow from NABARD, while PCARDBs receive financial assistance from SCARDB 3. Share-wise 1. As on end-March 2024, more than 97% of the total short-term co-operative sector are primary agricultural credit societies (PACS). ### Registration, Supervision and Regulations ^f3c1ee 1. **Primary Cooperative Banks (UCBs):** 1. Registration - All Cooperative banks are registered as cooperative societies under the provisions of, either the State Cooperative Societies Act of the State (if operating in single state) concerned or the Multi State Cooperative Societies Act, 2002 (if they are operating in more than one state). 2. This is because, in terms of geography, UCBs are single-state UCBs, and multi-state UCBs. 1. The Cooperative Societies with objects confined to one State are governed (as a state subject) by Entry 32 of the List II - State List of the Seventh Schedule to the Constitution and provisions of respective State Cooperative Societies Act. 2. The Cooperative Societies with objects not confined to one State are governed by Entry 44 of the List I - Union List of the Seventh Schedule to the Constitution and provisions of centrally administered Multi-State Co-operative Societies Act, 2002. Multi-state cooperatives are also called national cooperatives 3. Before March 1, 1966, they were fully regulated and supervised by the Registrar of Cooperative Societies (RCS) of State concerned or by the Central Registrar of Cooperative Societies ([CRCS](https://crcs.gov.in/)), as the case may be. 4. Since the applicability of banking laws to cooperatives societies since March 1, 1966, **there was ‘duality of control’** over UCBs between the Registrar of Cooperative Societies/Central Registrar of Cooperative Societies and the Reserve Bank of India. 5. Their banking functions (including licensing to operate as a bank) are regulated and supervised by the Reserve Bank, under the provisions of Banking regulation Act, 1949 (AACS). It has been vested powers to issues licence to UCBs under Section 22 and 23 Banking Regulation Act, 1949 (AACS), whereas management and structure, audit, staff matters were with RBI/RCS until the passage of the Banking Regulations Amendment Act 2020. 6. [Banking Regulation (Amendment) Act, 2020](MoLJ_20200929_The%20Banking%20Regulation%20(Amendment)%20Act,%202020%20No.%2039%20of%202020.pdf) - Effective from June 26, 2020, RBI has been given more powers for regulation and supervision of UCBs in terms of management, audit, capital, reconstruction/ amalgamation, etc 7. ==Structure of Department of Supervision== 1. Urban Banks Department was entrusted with these (3) functions, that is regulatory, supervisory and developmental. 2. [Nov 3, 2014](RBI_Annual%20Report_2015.pdf#page=148&selection=69,0,70,48) - Effective this date, Urban Banks Department (UBD) was split into Department of Cooperative Bank Regulation (DCBR) and Cooperative Bank Supervision (DCBS). Urban Banks Department (UBD) ceased to exist since then. 3. [Nov 1, 2019](RBI_Press%20Release_20191101_Reserve%20Bank%20of%20India%20Reorganises%20its%20Regulation%20and%20Supervision%20Departments.pdf) - RBI announced the merger of the Department of Banking Supervision (DBS), Department of Co-operative Bank Supervision (DCBS), and Department of Non-Banking Supervision (DNBS), to create a unified **Department of Supervision** (often referred to in the context of the 2019 restructuring). 1. Alongside, the regulatory functions relating to financial sector entities carried out through three separate departments, viz., Department of Banking Regulation, Department of Non-Banking Regulation and Department of Cooperative Banking Regulation were merged into a unified Department of Regulation. 4. ==[Box VI.3 - Changing Paradigm of UCB Supervision – Way Forward](RBI_Annual%20Report_2021.pdf#page=177&selection=4,0,5,50)== in RBI's Annual Report 2021. 5. ==As of now, their banking functions are regulated and supervised by the Department of Regulation and Department of Supervision of the Reserve Bank respectively.== 6. So UCBs are being periodically inspected by RBI under provisions of Section 35 of the Banking Regulation Act, 1949 (AACS) to ensure that the banks are complying with the extant guidelines/instructions/norms. 7. A list of [measures](PIB_20250401_Banking%20Regulation%20Amendment%20Act%202020%20has%20enhanced%20RBI's%20Supervision%20Over%20Co-operative%20Banks.pdf) in place to prevent corruption and irregularities in cooperative banks, as informed by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha on April 1, 2025. 8. **Summary:** 1. All Urban Cooperative societies (along with single-state Urban Cooperative banks) are are governed (registered, *but regulated and supervised in few matters*) under the provisions of State Cooperative Societies Act of the State (operating in the single state) concerned. 2. All Multi-State Co-operative Societies (along with multi-state Urban Cooperative Banks) are governed (registered, *but regulated and supervised in few matters*) under the provisions of Multi-State Co-operative Societies Act, 2002. 3. So not all cooperative societies are banks. 4. But those operating as banks (after obtaining license from the RBI) have their banking and various non-banking activities regulated and supervised under the provisions of the Banking Regulation (BR) Act, 1949, by the Reserve Bank of India (RBI). 2. ==StCBs, DCCBs:== ^6f258a 1. All State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) are registered (and regulated for their non-banking activities) under the provisions of the State Cooperative Societies Act of the State concerned. In addition, their banking functions are regulated by the RBI under the provisions of Banking regulation Act, 1949(AACS). 2. So whenever cooperative societies carry on the business of banking, they come under the regulatory purview of RBI. 3. They operate within one state, and so they are primarily regulated by the Registrar of Cooperative Societies (RCS) at the state level for incorporation/registration, governance, management, registration, audit, staff matters, winding up etc. 4. **Banking functions:** 1. Regulation 1. Banking related activities are regulated by the RBI under the provisions of Banking regulation Act, 1949(AACS) 2. So RBI issues instructions, circulars, guidelines and notifications to StCBs, DCCBs and UCBs under the provisions of the Banking Regulation Act, 1949 [as applicable to Cooperative Societies (AACS)], on matters related to capital adequacy, income recognition and provisioning norms, investments, maintenance of deposits, branch expansion of StCBs/DCCBs and UCBs, customer service, etc 2. Supervision (by NABARD) 1. They are supervised (inspected) by National Bank for Agriculture and Rural Development (NABARD) under Section 35 (6) of the BR Act, to ensure that the banks are complying with the extant guidelines/instructions/norms. 2. For this context, they are also defined in the NABARD (National Bank for Agriculture and Rural Development) Act, 1981. 3. ==[PACS](https://www.cooperation.gov.in/en/about-primary-agriculture-cooperative-credit-societies-pacs) and long-term co-operatives (SCARDBs, PCARDBs):== ^a5a3f1 1. They are not regulated by the RBI, and these co-operative societies are not covered as "cooperative banks" by the Banking Regulation Act, 1949, but rather operate under the provisions of State Cooperative Societies Act of the State concerned, under entry 32 of the state list of the Seventh Schedule of the Constitution. 2. They are primarily regulated by the Registrar of Cooperative Societies (RCS) at the state level for registration, management and structure 3. **Banking functions** - NABARD regulates and supervises their banking functions, financial stability, and provides refinance, often under powers delegated by the RBI. For this context, they are also defined in the NABARD (National Bank for Agriculture and Rural Development) Act, 1981. 4. So banking functions of rural cooperatives (including Regional Rural Banks) are supervised by the [NABARD](https://www.nabard.org/annual-report/supervisory-role-of-nabard.html). ## Banks Banks (those which are regulated under the Banking Regulation Act, 1949) can be categorised into co-operative banks and commercial banks 1. **Co-operative banks:** 1. Primary (Urban) Co-operative Banks (UCBs), 1. Their banking functions (and some of the non-banking functions) are regulated and supervised by the RBI. 2. Rural Cooperative Banks (RCBs) 1. State Co-operative Banks (StCBs), 2. District Central Co-operative Banks (DCCBs) - Their (RCBs) banking functions are _regulated_ by the RBI but are supervised by NABARD under Section 35(6) of the Banking _Regulation_ (BR) Act. - PACS and long-term credit cooperatives are not regulated within the Banking Regulation Act, 1949 3. They can be further classified into scheduled and non-scheduled based on their inclusion or otherwise in the second schedule of the RBI Act, 1934 1. **Scheduled co-operative Banks** - They have to keep cash reserves with RBI. They are: 1. [Scheduled Urban Cooperative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/schedulecoop.pdf) 2. [Scheduled State Co-operative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/SCCB20141702.pdf) 2. **Non-scheduled co-operative Banks** - They need not keep cash reserves with RBI but either cash reserves with itself or by way of balance in a current account with the Reserve Bank or the State Co-operative Bank of the State or in case of primary (Urban) co-operative bank with the Central Co-operative Bank of the district concerned or any of the above ways. They are: 1. [Non-Scheduled Urban Cooperative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/nonschedulecoop.pdf) 2. [Non-Scheduled State Co-operative Banks](https://rbidocs.rbi.org.in/rdocs/Content/pdfs/NSCB20141402.pdf) 3. District Central Co-operative Banks (DCCBs) 2. **Commercial banks:** All banks other than Co-operative Banks are classified as a Commercial banks. ^890407 Here a Bank” means a ‘banking company’, a ‘corresponding new bank’ and ‘State Bank of India’ as defined in Section 5 of the Banking Regulation Act, 1949 (Act 10 of 1949) 1. They can be further classified into 7 types: 1. Public Sector Banks 1. SBI - Earlier it was SBI and its associates, but now referred to as only SBI. 1. Formation of SBI - The State Bank of India (SBI) was created through a statutory takeover of the Imperial Bank of India on July 1, 1955, via a special act of Parliament, the State Bank of India Act, 1955. The Imperial Bank of India (almost 80% privately owned) was originally formed on January 27, 1921, by the merger of three Presidency Banks, that is Bank of Bengal, Bank of Bombay, and Bank of Madras 2. SBI's Associates - They were formed under the State Bank of India (Subsidiary Banks) Act, 1959. But in April 2017, SBI was merged with all of its associates, that is, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore. Bharatiya Mahila Bank (BMB), a separate public sector bank, established on November 19, 2013 and not an associate of SBI was also merged into SBI in 2017. 2. Other Public Sector Banks (PSBs) - They were created under the Banking Companies (Acquisition & Transfer of Undertakings) Acts, 1970 & 1980. 14 major banks were nationalized in 1969, followed by another 6 in 1980, bringing them under government ownership. These Acts are commonly referred to as the Bank Nationalisation Acts. But they all are regulated under the Banking Regulation Act, 1949. 2. Private Sector Banks - Indian Banks 3. Private Sector Banks - Foreign Banks 4. [Regional Rural Banks (RRBs)](https://rbi.org.in/commonman/english/scripts/banksinindia.aspx#rrb) 1. July I, 1975 - Govt of India had appointed the Working Group on Rural Banks, chaired by M. Narasimham 2. July 30, 1975 - The group submitted its report 3. October 2, 1975 - Regional Rural Banks (RRBs) in India were [established](https://financialservices.gov.in/beta/en/page/regional-rural-banks), initially with five banks, under an ordinance with an objective to provide credit to rural sectors. 4. February 9, 1976 - The Regional Rural Banks (RRB) Act was passed in **1976** (Act No. 21 of 1976) on February 9, 1976, although it was deemed to have come into force on September 26, 1975. With this, RRBs were governed by the [Regional Rural Banks Act, 1976](https://www.indiacode.nic.in/bitstream/123456789/1492/1/197621.pdf). 5. 1977 – The [Review Committee on Regional Rural Banks (1977)](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CR440_19776E6C93F2847B4D41AD0BCDED1752F412.PDF) submitted its report. 5. Payments Banks 1. Payment Bank means a bank licensed under section 22 of the Banking Regulation Act, 1949. 2. They are governed by the terms of the Reserve Bank [Guidelines for Licensing of Payments Banks](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32615), dated November 27, 2014, as amended from time to time. 6. Small Finance Banks [(since 2014)](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32614) 1. Small Finance Bank means a bank licensed under section 22 of the Banking Regulation Act, 1949 and governed by the terms of the Reserve Bank [Guidelines for Licensing of Small Finance Banks” dated November 27, 2014](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32614), as amended from time to time. 7. Local Area Banks 2. Commercial banks are classified into scheduled and non-scheduled based on their inclusion or otherwise in the second schedule of the RBI Act, 1934. 1. Scheduled commercial banks can also be categorised in 5 different groups according to their ownership and/or nature of operation. 1. State Bank of India and its associates - public sector banks 2. Nationalised Banks - public sector banks 3. Regional Rural Banks 4. Foreign Banks and 5. Other Indian Scheduled Commercial Banks (in the private sector) - private banks, payments banks, small finance banks, local area banks 2. Non-Scheduled Commercial banks 1. Non-Scheduled banks: Both the local area banks (Coastal Local Area Bank Ltd. and Krishna Bhima Samruddhi LAB Ltd.) 2. *These non-scheduled ones have the options like above for maintenance of CRR. 3. ==As on Dec-2025, there are 139 commercial banks by the RBI.== 1. Out of these 139 commercial banks, 137 were classified as scheduled banks, while 2 were non-scheduled. 1. Scheduled commercial banks - 12 public sector banks (PSBs), 21 private sector banks (PVBs), 44 foreign banks (FBs), 11 small finance banks (SFBs), 6 payments banks (PBs), 43 regional rural banks (RRBs), and two local area banks (LABs). 2. Non-Scheduled Commercial banks - Non-Both the local area banks (Coastal Local Area Bank Ltd. and Krishna Bhima Samruddhi LAB Ltd.) 2. [List of Scheduled Commercial Banks (SCBs)](https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=3657) 4. **Supervision** 1. Commercial Banks - They (other than RRBs) are supervised by the Department of Supervision, Central Office, under the Banking Regulation Act, 1949 which grants the RBI authority over licensing, management, operations, and liquidation, etc. 2. Regional Rural Banks (RRBs) - They were created under the RRB Act, 1976, and _regulated_ for their banking functions by the RBI under the BR Act, 1949. But they are supervised by NABARD under Section 35(6) of the Banking _Regulation_ (BR) Act, 1949. The other functions are like the management, appointments, operations etc. are regulated and supervised by the central, state govt. and a sponsor bank. 1. RRBs on Department of Financial Services, Ministry of Finance, Govt of India - [Link](https://financialservices.gov.in/beta/en/regional-rural-bank-page) 3. [Banks in India](https://www.rbi.org.in/commonman/english/scripts/BanksInIndia.aspx) 1. List of scheduled banks (scheduled co-operative banks and scheduled commercial banks) - Link to the [Second Schedule, The RBI Act, 1934](https://www.indiacode.nic.in/handle/123456789/2398?view_type=search) ## Data Releases 1. Annual 1. ==Report on Trend and Progress of Banking in India== 2. Statistical Tables relating to Banks in India 3. Handbook of Statistics on Indian Economy 4. [Primary (Urban) Co-operative Banks’ Outlook](https://rbi.org.in/Scripts/Pr_DataRelease.aspx?SectionID=372&DateFilter=Year) 2. Half-Yearly 1. [Financial Stability Report, December](https://rbi.org.in/Scripts/FsReports.aspx) 2. [Payment Systems Report](https://rbi.org.in/Scripts/HalfYearlyPublications.aspx?head=Payment%20System%20Report) 3. Quarterly 1. [Bank Lending Survey](https://rbi.org.in/Scripts/QuarterlyPublications.aspx?head=Bank%20Lending%20Survey) 2. [Quarterly Basic Statistical Return (BSR)-1 on Credit by Scheduled Commercial Banks - (Excluding Regional Rural Banks)](https://rbi.org.in/scripts/Pr_DataRelease.aspx?SectionID=354&DateFilter=YearMonth_PR) 3. [Quarterly Basic Statistical Return (BSR)-2 on Deposits with Scheduled Commercial Banks - (Excluding Regional Rural Banks)](https://www.rbi.org.in/scripts/Pr_DataRelease.aspx?SectionID=382&DateFilter=Year) 4. [Quarterly Order Books, Inventories and Capacity Utilisation Survey](https://rbi.org.in/Scripts/QuarterlyPublications.aspx?head=Quarterly%20Order%20Books,%20Inventories%20and%20Capacity%20Utilisation%20Survey) 5. [Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: Press Releases](https://rbi.org.in/scripts/Pr_DataRelease.aspx?SectionID=358&DateFilter=Year) 6. [Services and Infrastructure Outlook Survey](https://rbi.org.in/Scripts/QuarterlyPublications.aspx?head=Services%20and%20Infrastructure%20Outlook%20Survey) 7. [State wise and Region wise Deployment of ATMs](https://rbi.org.in/Scripts/StateRegionATMView.aspx) 4. Monthly 1. [Bank-wise ATM/POS/Card Statistics](https://rbi.org.in/Scripts/ATMView.aspx) 2. [Bank-wise NEFT/RTGS/Mobile Banking/Internet Banking Statistics](https://rbi.org.in/Scripts/NEFTView.aspx) 3. [Data on Sectoral Deployment of Bank Credit](https://rbi.org.in/Scripts/Data_Sectoral_Deployment.aspx) 4. [Entity-wise PPI Statistics](https://www.rbi.org.in/Scripts/PPIStatisticsView.aspx) 5. [Entity-wise UPI/IMPS/NETC/NFS/AePS/CTS/BBPS Statistics](https://rbi.org.in/Scripts/EntityWiseRetailStatistics.aspx) 6. [Lending and Deposit Rates of Scheduled Commercial Banks](https://rbi.org.in/Scripts/Pr_DataRelease.aspx?SectionID=369&DateFilter=Year) 7. [Payment System Indicators](https://rbi.org.in/Scripts/PSIUserView.aspx) 8. [Pictorial Representation of Trends in Payment Systems](https://rbi.org.in/Scripts/TrendsPSIuserview.aspx) 9. [RBI Bulletin - Current Statistics](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx)| 5. Fortnightly 1. RBI Scheduled Banks’ Statement of Position 6. Weekly 1. WSS 7. Past/Occasional 1. [Selected Banking Indicators 1947-1997](https://rbi.org.in/Scripts/BankingIndicatorsDisplay.aspx?Id=14) ## Related Notes 1. [[About the RBI#Role as Regulator|Role of RBI as a Regulator]] 2. [Department of Supervision](Department%20of%20Supervision.md) 3. [[All India Financial Institutions (AIFI)]] ## References 1. RBI (1999, December). High Power Committee on Urban Co-operative Banks_Chairman-K. Madhava Rao. [Link](https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=130) | [[RBI_Reports_199912_High Power Committee on Urban Co-operative Banks_Chairman-K. Madhava Rao.pdf|pdf]] 2. RBI (2013, September 27). *Second Schedule to the Reserve Bank of India Act, 1934 – Norms for inclusion*. [Link](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=12601) 3. RBI (2018). *Report on Trend and Progress of Banking in India (section-Developments in Co-operative Banking)* [Link](https://www.rbi.org.in/scripts/PublicationsView.aspx?Id=18744) 4. RBI. (2021, August 23). *Report of the Expert Committee on Urban Co-operative Banks*. [Link](https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1185) | [[RBI_Reports_20210823_Report of the Expert Committee on Urban Co-operative Banks.pdf|pdf]] 5. RBI. (2024). Report on Trend and Progress of Banking in India. [[RBI_Reports_2024_Report on Trend and Progress of Banking in India.pdf|pdf]] 6. RBI. (Dec 29, 2025). Report on Trend and Progress of Banking in India. [[RBI_Reports_2024_Report on Trend and Progress of Banking in India.pdf|pdf]] 7. RBI. *Brief History of Urban Cooperative Banks in India* [Link](https://www.rbi.org.in/scripts/fun_urban.aspx)