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Cooperative Banks Commercial Banks Co-operatives banks are co-operative organizations. Commercial banks are joint-stock banks Governed by the Co-operative Societies Act as well as Banking Regulation Act Governed by the Banking Regulation Act Subject to the rules laid down by the Registrar of Co-operative Societies Subject to the control of the Reserve Bank of India directly Borrowers are member shareholders, so they have some influence on the lending policy of the banks, on account of their voting power Borrowers of commercial banks are only account- holders and have no voting power as such rarr Voting power as per shareholding Have not much scope of flexibility on account of the rigidities of the bye-laws of the Co-operative Societies Free from such rigidities Do not pursue the goal of profit maximization Works for profit maximization Smaller in size Larger in size with wider reach in the country

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Cooperative Banks     Commercial Banks      Co-operatives banks are co-operative organizations.    Commercial banks are joint-stock banks      Governed by the Co-operative Societies Act as well as Banking Regulation Act    Governed by the Banking Regulation Act      Subject to the rules laid down by the Registrar of Co-operative Societies    Subject to the control of the Reserve Bank of India directly      Borrowers are member shareholders, so they have some influence on the lending policy of the banks, on account of their voting power    Borrowers of commercial banks are only account- holders and have no voting power as such rarr Voting power as per shareholding      Have not much scope of flexibility on account of the rigidities of the bye-laws of the Co-operative Societies    Free from such rigidities      Do not pursue the goal of profit maximization    Works for profit maximization      Smaller in size    Larger in size with wider reach in the country

span >Which of the following is NOT a difference between a commercial bank and a cooperative bank?

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Cooperative Banks	Commercial Banks
Co-operatives banks are co-operative organizations.	Commercial banks are joint-stock banks
Governed by the Co-operative Societies Act as well as Banking Regulation Act	Governed by the Banking Regulation Act
Subject to the rules laid down by the Registrar of Co-operative Societies	Subject to the control of the Reserve Bank of India directly
Borrowers are member shareholders, so they have some influence on the lending policy of the banks, on account of their voting power	Borrowers of commercial banks are only account- holders and have no voting power as such → Voting power as per shareholding
Have not much scope of flexibility on account of the rigidities of the bye-laws of the Co-operative Societies	Free from such rigidities
Do not pursue the goal of profit maximization	Works for profit maximization
Smaller in size	Larger in size with wider reach in the country