placing them at a severe disadvantage. post crisis, social banking has become an important theme across the globe. the need for banks to be relevant to society, besides pursuing their own business interests, has been reflected in various measures introduced through legislations and regulations in several jurisdictions. the fact, that developments in the financial world can have severe spillover effects on the real sector, thereby materially impacting the lives of the masses – has been the thought process behind these measures. the stability and strength of the financial system is, thus, a matter of public concern and is reflected in these steps. it is pertinent to note that banks are an integral part of the social system. they draw resources such as manpower, funds, support services, etc. from the community, which also acts as customers for banks ’ services. banks are, therefore, heavily reliant on society for their operations and it is, thus, fair to expect that banks reciprocate by ensuring that the interests of the society are taken care of through social banking measures. history of social banks historically, the first social banks were founded in italy in the 15th century. their primary responsibility was to be an intermediary between those with money to save and those who needed money to do business. in india, the history of co - operative banks goes back to the year 1904, when the co - operative credit societies act was enacted. thus, social banks are not a new concept but rather an idea that has had a long history both globally and in india. distinguishing features of social banking the critical difference that sets social banking apart from conventional commercial banking is that though earning profit is one of the objectives of social banking, it would not be their raison d ’ etre. social banking would also be concerned about the community, about contributing to the well - being of the masses and ensuring that their activities are carried out in a manner that is in congruence with the broader goals of the society. they would not encourage businesses that harm the ecosystem and would support sustainable environmental practices through their lending policies. social banking would seek to closely understand the requirements of customers and develop products that are best suited to their needs. they work towards developing technology leveraged models that bring down the costs of providing services and make banking affordable to the masses. by extending the reach and penetration of banks, social banking tries to make banking services available to the marginalized segments of the society. social banking also needs to promote inclusion to address poverty about 2.

for his cabinet to discuss. to his surprise, the british government received the proposal enthusiastically and approved it on 16 june 1940. the plan was also supported by the french prime minister reynaud, who was unable to convince his cabinet and resigned. petain came into power. france was lost. the second episode relates to the year 1950. we are here in the middle of the massachusetts winter. winter sports seem to unite many of us, here in boston and in finland. we have even a same asset in ice hockey, the goalkeeper tuukka rask, of the boston bruins and of the national team of finland. winter and skiing meant a lot for jean monnet, too. monnet wrote his great proposal of the european coal and steel union during a two - week cross country skiing holiday on the alps in the winter of 1950. he made his skiing trip alone, with only a guide helping him to find his way. european integration can only be understood against its historical background and especially the two world wars. the community was founded on the necessity of ending the historical antagonisms between the great european powers. bis central bankers ’ speeches jean monnet stressed that there could be no peace in europe, if states continued to be structured around the sort of national sovereignty that leads to politics of privilege and economic protectionism. this thinking was certainly shared by many other european politicians. one of them was j. k. paasikivi, the finnish banker and diplomat, and later the president of finland. in the summer of 1944, mr. paasikivi wrote in his diary about the fate of small countries. his reading of history had made him a pessimist : “ states act according to the raison d ’ etat, only in the national interest. it is frightening, blood - red. ” he went on : “ solving the problem of limiting the raison d ’ etat and its relationship to morality is an issue that, although primarily affecting the future of small countries, will ultimately also determine the future of larger countries and the whole of mankind. ” this rather grim background goes a long way in explaining the european approach to integration. the emphasis has been on agreeing on common rules building eu law. the member states have been willing to commit to joint rules which protect members from negative externalities of each other ’ s policy actions. but they have been cautious in delegating executive power to the eu institutions. this is evidenced, for example, by the fact that the eu budget