There are mainly three types of banks in India. The first are national banks which are also called government banks. The number of these banks is 18. While the number of urban cooperative banks like PMC is 1542. Similarly, the number of scheduled private banks is 22. The good thing is that since the liberalization of 1991, the money of customers kept in any commercial bank of India has not sunk. If ever such situations have arisen, then the government has merged the banks with poor financial status to the banks with good standing. But during this time the financial condition of 350 Cooperative banks has definitely deteriorated.
And the people who had accounts in these banks … they got a total of 4 thousand 822 crores as insurance. But in any case this amount would not have been more than 1 lakh rupees. Now you should understand how these three types of banks work. Government and private banks are formed under the Companies Act.
Public sector banks are directly under the control of the Finance Ministry. Whereas private banks are responsible for their owners. And the RBI works to monitor these. Cooperative banks are registered under the Cooperative Act of individual states. These banks are under the Union Ministry of Agriculture. That is, they are not controlled by the Finance Ministry.
These banks operate under the rules of RBI, state governments and central government. All three types of banks… provide facilities for depositing, withdrawing and lending money. But what is the difference in the functioning of these three, you should also understand this. Government and private banks are branch based. That is, these banks can open their branch anywhere in the country.
While there are limits to do this for Cooperative Banks. Cooperative banks were established in 1966. This was done so that the common people also had the ease of taking loans from banks. The control of government and private banks is in the hands of the government and share holders… whereas cooperative banks are based on the spirit of cooperation, and they are also controlled by the common people.
That is, they are based on a democratic framework. In which the public is the owner. Since 1966, with the help of cooperative banks, people started getting loans to build houses easily and in states like Maharashtra, Gujarat and Andhra Pradesh, millions of people took loans from these banks and built their houses. The officers of these banks have an old acquaintance with the common people. The branches of these banks are often near the homes of the people and due to the spirit of mutual support, people believe in them. But scams like PMC Bank … hurt this sentiment.
The banks that were formed to empower the common man… If they start working on the signals of industrialists. Then what will happen to the trust of the common man? The Reserve Bank of India has also refused to allow the merger of Indiabulls Housing Finance and Laxmi Vilas Bank today. Indiabulls were being merged with Lakshmi Vilas Bank.
RBI has banned Laxmi Vilas Bank from lending… So Indiabulls intended to become a bank after the merger. But now this will not happen. India Bulls has been accused of financial irregularities in many ways. We have told you this news because many times in India the interests of the owners of private banks collide with the financial position of the bank.
PMC Bank was a cooperative bank. Which was exploited by industrialists together with the officials of the bank. Therefore, the risk of misuse of private banks is even greater. Government banks in our country also fall prey to the deception of industrialists. Merchants like Nirav Modi and Mehul Choksi looted more than Rs 14,000 crore to the banks.
And fled the country, while Vijay Mallya escaped after taking a loan of 9 thousand crores. Former ICICI chairman Chanda Kochhar has also been accused of benefiting a private company. According to the allegations, he had misused his influence … Loan Sanction of Rs 300 crore. It is true that no major commercial bank has been drowned in India so far. But this will not happen in future too … This cannot be said concretely. The way industrialists are interfering in banks.
The way leaders keep cooperative banks in their hands. Seeing it, it cannot be said that there will never be a crisis on your money. And the biggest threat is to the account holders of cooperative banks. So today we will tell you what you can do to avoid it.
First of all, see who are the people in the management of your cooperative bank. Also check whether his image is correct and how is his relationship with politicians and industrialists? Cooperative banks often lure customers with a higher rate of interest. They also promise to get loans soon.
People believe in these banks because of mutual identity. But this trust often overshadows your accumulated capital. Also keep in mind that you do not deposit all your money in a single bank. Deposit it in two or three banks separately. And in any one bank, you should not have more than 10 percent of your total money.
In cooperative banks, your money of at least 1 lakh rupees is safe… but there is no guarantee of security of money in credit cooperative societies. Therefore, you should be careful while dealing with these organizations. In small cities, many small financial institutions take names similar to big banks. This makes customers feel cheated. So before placing money in such financial institutions… check it thoroughly.