The Co-operative movement was started in India to ameliorate the condition of that cooperation offers a solution to the difficulties but also by the town man in regard to credit as well as other aspects of his business and like. The Mac Lagan Committee on Cooperation pointed out as early as 1915 that, “Urban Credit Societies may serve useful purpose in training the upper and middle classes to understand ordinary banking principles”. In 1931 the Central Banking Enquiry Committee recommended that, “limited liability of cooperative societies generally known as urban banks should be established wherever necessary facilities and conditions exist for the benefit of middle classes of the population. We do not see any objection to special societies for salary earners if these societies are looked upon as thrift societies for collecting and investing the savings of their members. The duty of these urban banks should be to try to do for the small trader, the small merchant and the middle class population as like what the commercial banks are doing for the big trader and the big merchant.” Urban Cooperative Banks have a prestigious place in the Cooperative Credit Structure.