Role of Urban Cooperative Banks in Financial Inclusion

Abstract

Role of financial system makes a country strong and capable to stand out in this competitiveworld financial inclusion become key development parameter to reduce poverty and achieve financial milestones. It catalyzes development activates specially in developing country. This paper studies the role of urban cooperative banks to fill up the gap to access for finance, financial literacy to afford cheap finance for weaker sections of society. Government leaders of developing country making vast effort to expand financial inclusion network by implementing regulatory framework in countries. Financial inclusion should be implemented in grassroots bases so that rural development can be happening in India. Being local in the nature and minimal operating cost and labor cost give an advantageous our economy to spread development on the grassroots level through cooperative banks. Cooperative banking sector capture Attention of economic policy maker when there is burning issue of inclusive growth after the World Bank Report. No doubt in India currently there is large gap in demand and supply side of finance at affordable cost. Urban cooperative banks achieved significantly growth in terms of size, deposits, lending in Urban areas which makes urban cooperative banks as strong Pillar of financial inclusion apart from commercial banks.