In our country, majority of population is living in villages and depend on agriculture sector. So, rural poverty is a major problem in developing countries like India. They are facing various problems due to lack of resources and opportunities in rural region. Therefore, there is need for study of Co-operative Banking for rural transformation of the country. In India, nowadays the Co-operative Banking has been grown up to a large extent. It helps in alleviation of poverty by providing employment opportunities, loans and also promotes industrial & economic development. Through Co-operative Banking, rural areas can be developed and transformed into developed area. With the help of this paper, the researcher studied the correlation and coherence between co-operative banking and rural development in India. The study highlighted the role of co-operative Banks in industrial and economic development of India.