{"id":86217,"date":"2026-10-13T00:32:13","date_gmt":"2026-10-12T19:02:13","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=86217"},"modified":"2026-10-13T00:32:15","modified_gmt":"2026-10-12T19:02:15","slug":"public-sector-banks-and-cooperative-banks","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/","title":{"rendered":"Public Sector Banks and Cooperative Banks, Check Details for JAIIB 2026"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_Public_Sector_Banks_and_Cooperative_Banks\" >What are Public Sector Banks and Cooperative Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_the_Key_Features_of_the_State_Bank_of_India\" >What are the Key Features of the State Bank of India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_the_Subsidiary_Banks_of_SBI\" >What are the Subsidiary Banks of SBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#How_were_the_Subsidiary_Banks_Managed\" >How were the Subsidiary Banks Managed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_Nationalized_Banks_in_India\" >What are Nationalized Banks in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#Which_Laws_Govern_Public_Sector_Banks\" >Which Laws Govern Public Sector Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_Regional_Rural_Banks_RRBs\" >What are Regional Rural Banks (RRBs)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_Cooperative_Banks\" >What are Cooperative Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#Which_Laws_Govern_Cooperative_Banks\" >Which Laws Govern Cooperative Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#What_are_the_different_types_of_Cooperative_Banks\" >What are the different types of Cooperative Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#Which_Loans_and_Advances_Are_Restricted_for_Cooperative_Banks\" >Which Loans and Advances Are Restricted for Cooperative Banks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#How_can_you_prepare_for_Public_Sector_Banks_and_Cooperative_Banks_for_JAIIB\" >How can you prepare for Public Sector Banks and Cooperative Banks for JAIIB?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#Download_JAIIB_Free_E-Books\" >Download JAIIB Free E-Books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Public Sector Banks and Cooperative Banks are important topics in the JAIIB Legal and Regulatory Aspects of Banking (LRAB) paper. Understanding their establishment, management, ownership, functions, and legal provisions can help candidates prepare for the JAIIB exam. These notes cover key concepts related to the State Bank of India (SBI), nationalized banks, Regional Rural Banks (RRBs), and cooperative banks in simple language. Candidates can use this guide to revise important banking laws and strengthen their exam preparation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-public-sector-banks-and-cooperative-banks\"><span class=\"ez-toc-section\" id=\"What_are_Public_Sector_Banks_and_Cooperative_Banks\"><\/span>What are Public Sector Banks and Cooperative Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Public Sector Banks are banks in which the government holds a majority stake, while Cooperative Banks operate on cooperative principles to serve their members and communities. Both play an important role in providing banking services, supporting economic activities, and meeting the financial needs of individuals and businesses. Their establishment, management, and operations are governed by specific laws and banking regulations.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Public Sector Banks: Include the State Bank of India and nationalized banks.<\/li>\n\n\n\n<li>Regional Rural Banks (RRBs): Provide banking services to rural areas, farmers, artisans, and small businesses.<\/li>\n\n\n\n<li>Cooperative Banks: Serve members and local communities through cooperative banking activities.<\/li>\n\n\n\n<li>Regulatory framework: Includes the Banking Regulation Act, the Reserve Bank of India Act, and other applicable laws.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/jaiib-mock-test\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Attempt A Free JAIIB Mock Test<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-key-features-of-the-state-bank-of-india\"><span class=\"ez-toc-section\" id=\"What_are_the_Key_Features_of_the_State_Bank_of_India\"><\/span>What are the Key Features of the State Bank of India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The State Bank of India (SBI) was established under the State Bank of India Act, 1955, as the successor to the Imperial Bank of India. It provides banking services to individuals, businesses, and government institutions. SBI also performs certain banking functions as an agent of the Reserve Bank of India (RBI). Its management, shareholding, and business activities are governed by the provisions of the SBI Act and other applicable banking laws.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Establishment: Established under the State Bank of India Act, 1955.<\/li>\n\n\n\n<li>Predecessor: Imperial Bank of India.<\/li>\n\n\n\n<li>Ownership: SBI is a public sector bank with the Central Government holding the majority stake.<\/li>\n\n\n\n<li>Regulation: Governed by the SBI Act, 1955, and applicable banking laws.<\/li>\n\n\n\n<li>Functions: Provides banking services, accepts deposits, grants loans, and carries out other permitted banking activities.<\/li>\n\n\n\n<li>RBI&#8217;s role: The RBI performs regulatory and supervisory functions under applicable laws.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-subsidiary-banks-of-sbi\"><span class=\"ez-toc-section\" id=\"What_are_the_Subsidiary_Banks_of_SBI\"><\/span>What are the Subsidiary Banks of SBI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Historically, several banks operated as subsidiaries of the State Bank of India under separate legal provisions. These banks provided banking services in different regions of India. The State Bank of India (Subsidiary Banks) Act, 1959, governed several of these institutions. However, SBI&#8217;s associate banks were merged with SBI in 2017, so they are no longer separate operating banks.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Act or legal provision<\/th><th>Key detail<\/th><\/tr><tr><td>State Bank of Hyderabad Act, 1956<\/td><td>Governed the former State Bank of Hyderabad.<\/td><\/tr><tr><td>State Bank of India (Subsidiary Banks) Act, 1959<\/td><td>Governed several former SBI subsidiary banks.<\/td><\/tr><tr><td>SBI associate bank merger, 2017<\/td><td>The remaining associate banks were merged with SBI.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-were-the-subsidiary-banks-managed\"><span class=\"ez-toc-section\" id=\"How_were_the_Subsidiary_Banks_Managed\"><\/span>How were the Subsidiary Banks Managed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The management of former SBI subsidiary banks was governed by the applicable laws and their respective administrative structures. Their boards included designated directors, and the appointment of managing directors followed the relevant statutory provisions. These banks also operated within the broader regulatory framework applicable to banking institutions in India.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The board was responsible for the bank&#8217;s management and administration.<\/li>\n\n\n\n<li>The SBI Chairman held a designated role under the relevant statutory framework.<\/li>\n\n\n\n<li>Managing directors were appointed according to the applicable legal provisions.<\/li>\n\n\n\n<li>The banks conducted permitted banking activities under the relevant laws.<\/li>\n\n\n\n<li>Historically, subsidiary banks acted as agents of SBI under the applicable provisions.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/blog\/jaiib-free-quizzes\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Attempt JAIIB Free Quizzes Now<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-nationalized-banks-in-india\"><span class=\"ez-toc-section\" id=\"What_are_Nationalized_Banks_in_India\"><\/span>What are Nationalized Banks in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nationalized banks are banks whose ownership and management were transferred to the government under specific banking laws. The major bank nationalization exercises took place in 1969 and 1980 to expand banking services and improve access to credit. These banks provide services to individuals, businesses, farmers, and other sectors of the economy. Their operations are governed by their respective nationalization laws and applicable provisions of banking legislation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>First major nationalization: 14 major commercial banks were nationalized in 1969.<\/li>\n\n\n\n<li>Second major nationalization: Six more commercial banks were nationalized in 1980.<\/li>\n\n\n\n<li>Relevant legislation: Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.<\/li>\n\n\n\n<li>Ownership: The Central Government holds a majority stake in public sector banks.<\/li>\n\n\n\n<li>Share transfer: Shares held by other shareholders are subject to applicable laws and regulations.<\/li>\n\n\n\n<li>Main objective: To expand banking access and support economic development.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-laws-govern-public-sector-banks\"><span class=\"ez-toc-section\" id=\"Which_Laws_Govern_Public_Sector_Banks\"><\/span>Which Laws Govern Public Sector Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Public sector banks operate under specific laws that define their ownership, management, business activities, and regulatory requirements. The applicable provisions depend on the type of bank and its governing statute. The Banking Regulation Act, 1949, and the Reserve Bank of India Act, 1934, also play important roles in the banking regulatory framework.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Legislation<\/th><th>Purpose<\/th><\/tr><tr><td>State Bank of India Act, 1955<\/td><td>Governs SBI&#8217;s establishment and statutory framework.<\/td><\/tr><tr><td>Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970<\/td><td>Provides the legal framework for the nationalized banks covered by the 1970 Act.<\/td><\/tr><tr><td>Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980<\/td><td>Provides the legal framework for the banks covered by the 1980 nationalization.<\/td><\/tr><tr><td>Banking Regulation Act, 1949<\/td><td>Contains provisions regulating banking activities, including applicable provisions for public sector banks.<\/td><\/tr><tr><td>Reserve Bank of India Act, 1934<\/td><td>Provides the statutory framework for the RBI and its functions.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-regional-rural-banks-rrbs\"><span class=\"ez-toc-section\" id=\"What_are_Regional_Rural_Banks_RRBs\"><\/span>What are Regional Rural Banks (RRBs)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regional Rural Banks were established to provide banking and credit facilities in rural and semi-urban areas. They support farmers, agricultural workers, artisans, small businesses, and other rural communities. RRBs were initially established under the Regional Rural Banks Ordinance, 1975, which was replaced by the Regional Rural Banks Act, 1976. Their ownership structure and area of operation are defined by the applicable legal framework.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Establishment: The first RRBs were established in 1975.<\/li>\n\n\n\n<li>Governing law: Regional Rural Banks Act, 1976.<\/li>\n\n\n\n<li>Ownership structure: The traditional capital contribution ratio is 50:35:15.<\/li>\n\n\n\n<li>Shareholding pattern: Central Government 50%, Sponsor Bank 35%, and State Government 15%.<\/li>\n\n\n\n<li>Area of operation: Generally restricted to specified geographical areas.<\/li>\n\n\n\n<li>Main beneficiaries: Farmers, artisans, rural workers, and small businesses.<\/li>\n\n\n\n<li>Main objective: To improve access to banking and credit in rural areas.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/jaiib\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Explore JAIIB 2026 Online Courses<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-cooperative-banks\"><span class=\"ez-toc-section\" id=\"What_are_Cooperative_Banks\"><\/span>What are Cooperative Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cooperative Banks are financial institutions organised on cooperative principles to serve their members and communities. They accept deposits and provide loans and other permitted banking services. Their cooperative structure is governed by the relevant cooperative laws, while their banking activities are regulated under the applicable provisions of the Banking Regulation Act, 1949, and the RBI&#8217;s regulatory framework.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purpose: To meet the banking and credit needs of members and communities.<\/li>\n\n\n\n<li>Structure: Operate under cooperative principles.<\/li>\n\n\n\n<li>Banking regulation: Subject to applicable provisions of the Banking Regulation Act, 1949.<\/li>\n\n\n\n<li>Regulatory authority: The RBI regulates banking functions under the applicable law.<\/li>\n\n\n\n<li>Cooperative regulation: Relevant state or central cooperative laws govern their cooperative structure.<\/li>\n\n\n\n<li>Types: Include State Cooperative Banks, Central Cooperative Banks, and Primary Cooperative Banks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-laws-govern-cooperative-banks\"><span class=\"ez-toc-section\" id=\"Which_Laws_Govern_Cooperative_Banks\"><\/span>Which Laws Govern Cooperative Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The laws applicable to a cooperative bank depend on its registration and area of operation. A cooperative society operating within one state is generally governed by that state&#8217;s cooperative societies law. A multi-state cooperative society is governed by the Multi-State Cooperative Societies Act, 2002. Banking activities are subject to the applicable provisions of the Banking Regulation Act, 1949, and RBI regulation.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Type of cooperative society<\/th><th>Applicable cooperative law<\/th><\/tr><tr><td>Cooperative society operating within one state<\/td><td>Relevant State Cooperative Societies Act<\/td><\/tr><tr><td>Multi-state cooperative society<\/td><td>Multi-State Cooperative Societies Act, 2002<\/td><\/tr><tr><td>Banking activities of cooperative banks<\/td><td>Applicable provisions of the Banking Regulation Act, 1949, and RBI directions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-different-types-of-cooperative-banks\"><span class=\"ez-toc-section\" id=\"What_are_the_different_types_of_Cooperative_Banks\"><\/span>What are the different types of Cooperative Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cooperative banking in India includes different types of banks that serve specific geographical areas and financial needs. Their roles vary from supporting rural credit to providing banking services in towns and cities. Understanding their classification is useful for the JAIIB LRAB paper.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Type of Cooperative Bank<\/th><th>Main Role<\/th><\/tr><tr><td>State Cooperative Bank<\/td><td>Operates at the state level and supports the cooperative credit structure.<\/td><\/tr><tr><td>Central Cooperative Bank<\/td><td>Generally operates at the district level and supports affiliated cooperative credit institutions.<\/td><\/tr><tr><td>Primary Cooperative Bank<\/td><td>Commonly known as an urban cooperative bank when it meets the relevant legal definition; provides banking services to local customers and members.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-loans-and-advances-are-restricted-for-cooperative-banks\"><span class=\"ez-toc-section\" id=\"Which_Loans_and_Advances_Are_Restricted_for_Cooperative_Banks\"><\/span>Which Loans and Advances Are Restricted for Cooperative Banks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cooperative banks must follow applicable legal restrictions when granting loans and advances. These restrictions help protect depositors, maintain sound banking practices, and prevent conflicts of interest involving directors and management. Candidates should study the precise statutory provisions and exceptions prescribed under the Banking Regulation Act, 1949.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loans against own shares: Cooperative banks are restricted from granting loans or advances against their own shares.<\/li>\n\n\n\n<li>Loans to directors: Unsecured loans or advances to directors are restricted under the applicable provisions.<\/li>\n\n\n\n<li>Conflict of interest: Certain loans involving directors&#8217; interests are subject to legal restrictions.<\/li>\n\n\n\n<li>Connected lending: Loans involving specified management personnel or related interests may be restricted under applicable provisions.<\/li>\n\n\n\n<li>Regulatory compliance: Cooperative banks must follow RBI directions and the relevant statutory requirements.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/jaiib-previous-year-papers\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Attempt JAIIB Previous Year Papers<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-you-prepare-for-public-sector-banks-and-cooperative-banks-for-jaiib\"><span class=\"ez-toc-section\" id=\"How_can_you_prepare_for_Public_Sector_Banks_and_Cooperative_Banks_for_JAIIB\"><\/span>How can you prepare for Public Sector Banks and Cooperative Banks for JAIIB?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Candidates preparing for the JAIIB Legal and Regulatory Aspects of Banking (LRAB) paper should focus on the legal framework, important definitions, bank classifications, and the roles of regulatory authorities. Regular revision of key Acts and practice with objective questions can improve understanding and help candidates recall important facts during the exam.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revise the State Bank of India Act, 1955, and the nationalization laws of 1970 and 1980.<\/li>\n\n\n\n<li>Learn the establishment, ownership, and objectives of Regional Rural Banks.<\/li>\n\n\n\n<li>Understand the differences between public sector banks and cooperative banks.<\/li>\n\n\n\n<li>Review the cooperative banking structure and the applicable laws.<\/li>\n\n\n\n<li>Practise JAIIB mock tests and topic-wise MCQs.<\/li>\n\n\n\n<li>Make short notes of important dates, Acts, definitions, and legal provisions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-download-jaiib-free-e-books\"><span class=\"ez-toc-section\" id=\"Download_JAIIB_Free_E-Books\"><\/span>Download JAIIB Free E-Books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To make your <a href=\"https:\/\/www.oliveboard.in\/blog\/jaiib-preparation-strategy\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">JAIIB 2026 preparation<\/a> easier, Oliveboard provides a collection of e-books and topper handwritten notes. These resources cover important topics in the Indian Economy and Banking, helping you revise key concepts quickly and effectively. You can download the PDFs and study at your own pace, anytime and anywhere.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Notes<\/strong><\/td><td><strong>Link to Download PDF<\/strong><\/td><\/tr><tr><td>800+ Important JAIIB Questions<\/td><td><a href=\"https:\/\/www.oliveboard.in\/jaiib-question-bank\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Download Free PDF<\/a><\/td><\/tr><tr><td>JAIIB Memory Based 2025 Paper <\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/jaiib-memory-based-paper\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Download PDF<\/a><\/td><\/tr><tr><td>750+ Solved Previous Year JAIIB Questions<\/td><td><a href=\"https:\/\/www.oliveboard.in\/jaiib-750-pyqs\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Download PDF<\/a><\/td><\/tr><tr><td>Economic Concepts in Banking Topper Handwritten Notes<\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/economic-concepts-of-banking-jaiib-handwritten-notes\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Economic Concepts in Banking for JAIIB <\/a><\/td><\/tr><tr><td>Indian Economic Architecture Topper Handwritten Notes<\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/indian-economic-architecture-topper-notes-jaiib\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Indian Economic Architecture for JAIIB <\/a><\/td><\/tr><tr><td>Fundamentals of Economics<\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/risk-and-basic-risk-management-framework-jaiib\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Fundamentals of Economics for JAIIB <\/a><\/td><\/tr><tr><td>Types of Economics and Basic Economic Problems<\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/risks-in-banking-business\/?ref=contac-nai-jaiib-notes\" target=\"_blank\" rel=\"noreferrer noopener\">Types of Economics and Basic Economic Problems <\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1791831341188\"><strong class=\"schema-faq-question\">1. Which Act governs the State Bank of India?<\/strong> <p class=\"schema-faq-answer\">The State Bank of India Act, 1955, governs the establishment and statutory framework of SBI.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791831342158\"><strong class=\"schema-faq-question\">2. When were the first major commercial banks nationalized in India?<\/strong> <p class=\"schema-faq-answer\">The first major nationalization of 14 commercial banks took place in 1969.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791831342819\"><strong class=\"schema-faq-question\">3. Which Act governs Regional Rural Banks?<\/strong> <p class=\"schema-faq-answer\">Regional Rural Banks are governed by the Regional Rural Banks Act, 1976.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791831343368\"><strong class=\"schema-faq-question\">4. What is the capital contribution ratio of RRBs?<\/strong> <p class=\"schema-faq-answer\">The traditional contribution ratio is 50:35:15 for the Central Government, Sponsor Bank, and State Government, respectively.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791831343917\"><strong class=\"schema-faq-question\">5. Which Act governs multi-state cooperative societies?<\/strong> <p class=\"schema-faq-answer\">The Multi-State Cooperative Societies Act, 2002, governs multi-state cooperative societies.<\/p> <\/div> <\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/jaiib-ppb-important-rbi-guidelines\/\">JAIIB PPB Important RBI Guidelines and Banking Limits<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/essentials-of-bank-computerization\/\">Essentials of Bank Computerization for JAIIB, Download Free eBook<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/jaiiib-afm-formulas-and-short-tricks\/\">JAIIB AFM Formulas and Short Tricks, Check Details<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/jaiib-ppb-case-study-quiz-on-kyc-lending-npa\/\">Attempt JAIIB PPB Case Studies Quiz on KYC, Lending and NPA Recovery<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/sum-of-years-digits\/\">IIBF JAIIB 2026, Sum of Years Digits, How to calculate? Check Details<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/laws-relating-to-securities-and-mode-of-charges-for-jaiib\/\">Laws Relating to Securities and Mode of Charges for JAIIB Exam 2026<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Public Sector Banks and Cooperative Banks are important topics in the JAIIB Legal and Regulatory Aspects of Banking (LRAB) paper.<\/p>\n","protected":false},"author":58,"featured_media":254006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10353],"tags":[],"class_list":["post-86217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-jaiib","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Public Sector Banks and Cooperative Banks, Check Details for JAIIB 2026<\/title>\n<meta name=\"description\" content=\"Understand the roles of Public Sector Banks and Cooperative Banks in banking regulations and their impact on the financial sector.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Public Sector Banks and Cooperative Banks, Check Details for JAIIB 2026\" \/>\n<meta property=\"og:description\" content=\"Public Sector Banks and Cooperative Banks are important topics in the JAIIB Legal and Regulatory Aspects of Banking (LRAB) paper. Understanding their\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/\" \/>\n<meta property=\"og:site_name\" content=\"Oliveboard\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Oliveboard\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-12T19:02:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-12T19:02:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2022\/06\/JAIIB-2-1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"730\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"AditiOB\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:site\" content=\"@Oliveboard\" 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I work as a Content Writer at Oliveboard, where I have been simplifying exam-related content for the past 4 years. I create clear and easy-to-understand guides for JAIIB, CAIIB, and UGC exams. My work includes breaking down notifications, admit cards, and exam updates, as well as preparing study plans and subject-wise strategies. My goal is to support working professionals in managing their exam preparation alongside a full-time job and to help them achieve career growth.\",\"sameAs\":[\"www.linkedin.com\/in\/aditi-chakraborty-131b3b379\"]},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#faq-question-1791831341188\",\"position\":1,\"url\":\"https:\/\/www.oliveboard.in\/blog\/public-sector-banks-and-cooperative-banks\/#faq-question-1791831341188\",\"name\":\"1. 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