1. Registration ↓
In India, the Commercial Banks are required to be registered under Banking Regulation Act, 1949.
In India, the Co-operative Banks are required to be registered under the Co-operative Societies Act, of the concerned state.
2. Main Objective ↓
The main objective of a Commercial Bank is to accept deposits from public for the purpose of lending to industry and commerce.
The main objective of a Co-operative Bank is to accept deposits from the members and the public for the purpose of providing loans to farmers and small businessmen with a motto of service.
3. Availability of Funds ↓
Massive funds are available at the disposal of Commercial Banks.
Limited funds are available at the disposal of Co-operative Banks.
4. Area of Operation ↓
Commercial banks operate over a larger area. Some commercial banks even have branches in foreign countries.
The area of operations of Co-operative Banks is limited and mostly confined to State. They do not operate at national level nor international level.
5. Nationalisation ↓
At present 20 Commercial Banks have been nationalised in India.
In India Co-operative Banks are not nationalised.
6. Merchant Banking Services ↓
Commercial Banks provide merchant banking services such as advising the companies regarding the public issue of shares.
Co-operative Banks do not provide merchant banking services.
7. Mutual Funds ↓
Commercial Banks in India such as Canara Bank, Bank of India, State Bank of India, do operate mutual funds.
At present co-operative banks in India do not operate mutual funds.
8. Basis of operation ↓
Commercial banks operates on the commercial principles. They operate to earn a profit.
The basis of operations is on co-operative lines, i.e. service to its members and the society.
9. Rate of Interest ↓
The Commercial Banks provide a lesser rate of interest as compared to co-operative banks.
The Co-operative Banks provide a little higher rate of interest on deposits as compared to commercial banks.