Vol. 2, Issue 5, Part N (2016)

Abstract
Banks play a major role in not just purveying credit to the productive sectors of the economy but also as facilitators of financial inclusion. Co-operative banks play an important role in meeting the credit requirements of both the urban and rural India. Though the cooperative banks account for a small share in the total credit they hold a significant position in credit delivery as they cater to different geographic locations and demographic categories. The wide network of co-operative banks, both rural and urban, supplements the commercial banking network for deepening financial intermediation by bringing a large number of depositors/borrowers under the formal banking network. Demographically, these institutions have enabled access to financial services to low and middle-income groups in both rural and urban areas. A nation can grow economically and inclusively only if it’s excluded population can turn out to be financially independent. Cooperative banks emerged as the best way to reach those sections of disadvantaged and low income segments of society who are excluded from benefits of delivery of financial services at affordable costs. This paper mainly attempts to examine the role played by urban cooperative banks in India in priority sector lending in achieving financial inclusion and thereby to facilitate inclusive growth.