Difference between scheduled commercial banks and cooperative banks

▪️While commercial banks are fully controlled by RBI, Cooperative banks are partially regulated by

RBI (Lay down rules for their capital adequacy, risk control, and lending norms) and their registration, audit, management, and resolution in the case of distress is regulated by Registrar of Co-operative Societies.

▪️ UCBs are structured as co-operatives, with their members carrying unlimited liability, whereas

commercial banks are structured as joint-stock companies.

▪️While in the case of commercial banks, there is a clear distinction between shareholders and its borrowers, in the case of a UCB, borrowers can become shareholders