The cooperative movement is almost 100 years old; and ever since, it has continued to play a vital role in ensuring uniform economic growth across various social segments. But in the recent years, corporate frauds have also spread to the cooperative sector, particularly cooperative banks. Given the fact that cooperative banks are structurally different from other banks, a separate analysis is necessary to understand the corporate governance system in these banks. This paper analyzes the history of the cooperative banking sector to understand the path dependence of cooperative banks. Further, it analyzes the issues before the CEOs of these banks in ensuring ethical governance practices in the Indian context. Finally, it gives suggestions to overcome those problems based on the in-depth interviews conducted with the CEOs of those banks.

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