Cooperative Banks: Ownership and Principles

The question asks to identify the type of banks that are owned by their customers and operate under the cooperative principle of 'one person, one vote'. This principle ensures democratic control where each member has an equal say, regardless of their capital contribution.

Cooperative banks fit this description perfectly. They are financial institutions established on a cooperative basis, meaning they are owned, controlled, and operated by and for their members (the customers/depositors/borrowers).

• Ownership: Owned by the members/customers.
• Control: Governed by the principle of 'one person, one vote', ensuring democratic decision-making.
• Objective: To serve the banking and financial needs of their members.

Let's look at why the other options are not the correct fit:

• State banks are typically owned or controlled by the government.
• Nationalised banks are commercial banks taken over by the government, primarily focused on profit and government objectives, not necessarily customer ownership in the cooperative sense.
• Scheduled banks are listed in the Second Schedule of the RBI Act, indicating adherence to certain regulatory requirements, but this classification doesn't define their ownership structure as being customer-owned with democratic voting.

Therefore, cooperative banks are uniquely defined by customer ownership and the 'one person, one vote' principle.