FINANCIAL INCLUSION: GREATER ROLE FOR CO-OP BANKS.

The Co-operative banks, in India, have a history more than 100 years. The Co-operative banks are an important constituent of the Indian Financial System.
Co-operative banks have certain advantages compared to scheduled commercial banks, in cost of operation, geographical reach and relationship banking (a rare commodity for ordinary customers in the changed banking scenario).
Role of co-operative banks are very important in the real last-mile financial inclusion. They can play a greater role than scheduled commercial banks in achieving the goals of financial inclusion, according to Uma Shanker - General Manager, RBI, (Urban Co-operative Banks Department).
At gross root level, these banks understand the needs of the needy better, and can play a larger role in financial inclusion.
Co-operative banks have to use advanced technology and recruit efficient people to compete with commercial banks.