The co-operative banking channel, being essentially a community based banking model, is more suited to design customized products and services to cater to the specific needs of different ethnic and social groups that exist in this country.
The existence of different forms of non-formal credit channels and chit funds, particularly in the north eastern provinces, clearly underscores the need for customized banking products and services for different population groups. The commercial banks have had to undertake this responsibility in the absence of adequate efforts by the co-operative banking systems.