Cooperative Banking: A way for inclusive growth through Co-operative Micro financing

Abstract

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposits. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks. In most countries, banks are regulated by the national government or central bank. Banking is defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to conduct economic activities such as making profit or simply covering operating expenses. Cooperative Microfinancing a new option for Government & Development Organizations. Micro financing is the provision of financial services to poor and low-income households without access to formal financial institutions. Microfinance is described as banking for the poor. Microfinance programs provide Micro credit/loans, Micro savings, Micro insurance, training to group members and other financial services to low income and poor people for use in small businesses. In Cooperative Micro Financing we are essentially looking at a "double bottom line"— social gains and commercial success. Conventional Micro financing setup is somewhat also lying on the same concept however Cooperative financial system naturally focus on welfare aspect. This paper tries, to inclusive growth among poor people through Co-operative Micro financing. This paper is an attempt to introduce an innovative and productive banking system in Kerala through co-operative micro financing. The author is aiming for the evolution of banking system in India especially in Kerala having an inclusive growth and upfilment and empowerment of poor by introducing new ways in the existing co-operative banking structure through Kudumbashree