The present study aims to empirically examine the role of co-operative banks in promoting income generation and employment opportunities in rural areas of Madhya Pradesh. Co-operative banks have long been recognized as vital financial intermediaries that extend credit facilities and financial inclusion to rural households, small farmers, and local entrepreneurs. Despite their significant outreach, the actual socio-economic impact of these institutions remains underexplored in the context of rural livelihoods. This research adopts a quantitative and descriptive analytical approach based on primary data collected through structured questionnaires administered to rural households and beneficiaries of co-operative banking services across selected districts of Madhya Pradesh. Statistical tools including descriptive statistics, correlation, and regression analysis are employed to assess the relationship between co-operative bank interventions and socio-economic development indicators. Preliminary findings suggest that co-operative banks contribute significantly to enhancing household income, supporting agricultural and non-agricultural enterprises, and generating self-employment opportunities. However, issues such as inadequate loan amounts, procedural delays, and lack of financial awareness continue to constrain their full potential. The study concludes by offering policy recommendations aimed at strengthening the operational efficiency of co-operative banks and enhancing their contribution to sustainable rural development in Madhya Pradesh.