| Co-operative Bank | Commercial Banks |
| 1. Cooperative Banks grants loan only to its members and not to everyone. | 1. Commercial Banks accept deposits from people and grant loans to every needy person. |
| 2. Cooperative Bank gives loans to its members for their economic development. | 2. Commercial Banks give loan for promoting trade and industry of the country. |
| 3. The object of these banks is to assist poor and unresourceful people. | 3. Commercial Banks give loan against some security. |
| 4. These banks not only give loans but they also inspire others to save and become independent. | 4. The work of these banks is to provide loans and not to give moral preachings. |
| 5. Every member of the cooperative bank has a responsibility towards the bank. | 5. In Commercial Banks, the manager and the Directors look after the management of the bank. |
| 6. The co-operative banks are regulated by the Indian Cooperative Society Act, 1904. | The Commercial Banks are regulated by the Indian Companies Act and Banking Regulation Act. |
| 7. The motive of these banks is not to earn profit but to give facilities to its members. | 7. The motive of these banks is to earn the profit. |
| 8. The rate of interest is low. | 8. The rate of interest charged by these banks is high. |
| 9. These banks provide loans only for production needs. | 9. These Banks give loans of any kind, whether productive or not. |
