They comply with the central bank guidelines yet have a unique financial system.
There are 1420 Non-Scheduled Urban Co-operative Banks in India as of 25 September 2024.
They were set up with the twin objectives of providing an institutional mechanism for promoting rural and semi-urban savings and for providing credit for viable economic activities in local areas.
They were established as Public Limited Companies in the private sector.
Local Area Banks can operate and open branches in a maximum of 3 geographically contiguous districts.