Co-operative banks are small financial institutions regulated by the RBI (and state governments) and lend to small businesses and vulnerable sectors. Short term loans are offered through a three-tier system - Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level. Long-term loans are routed through Primary Cooperative Banks (PCBs) or Urban Cooperative Banks (UCBs) which serve the customer base in urban and semi-urban areas. While some cooperative banks operate through single units, others have a branch network.