• The cooperative banking structure in India is a three-tier system that emerged with the enactment of the Co-operative Credit Societies Act, 1912.
• This system was designed to provide credit facilities primarily to the agricultural and rural sectors through cooperatives at various levels.

The main components of the cooperative banking structure are:

(a) State Co-operative Bank (SCB):

• This is the apex-level cooperative bank in a state.
• It coordinates and supervises the activities of District Central Co-operative Banks (DCCBs) and provides them with financial support.

(b) Land Development Bank (LDB):

• These banks are also part of the cooperative structure and specialize in providing long-term agricultural credit for land improvement, irrigation, and rural infrastructure development.

(c) Primary Agricultural Credit Societies (PACS):

• These form the base-level units in the cooperative credit system. They directly interact with farmers and provide short-term and medium-term credit for agricultural and rural purposes.