.1> Introduction to co-operative Banks. 2> Structure of co-operative banking in India1.

1> Introduction to co-operative Banks: -

1. Unlike commercial of the economy, the co-operative banks, on the other hand provide credit and other allied facilities to the rural and agricultural sectors the drawn of this century saw the evaluation of the co- operative movement in India. Co-operative societies came into being when the Co-operative banks which are engaged in serving the industrial and commercial sectors Societies Act, 1904, was enacted. The movement was started with the aim of providing farmers funds with low rates of interest so that exploitation by the village moneylenders is foiled. The Act provided for the formation of co-operative credit societies and a number of small primary credit societies were established in various parts of the country. These societies, however, could not mobilise enough resources as compared to loans demanded by its members.

This led to the enactment of a new act in 1912. The Co-operative Societies Act of 1912 provided for starting Center Co-operative Banks with headquarters located in Urban Centers. In 1914 necessary steps were taken by the government to strengthen the co-operative movement. The government appointed the Maclagan Committee to look into and make recommendations for the improvement of a State Co-operative Bank for each state. The federation of Central Co-operative Banks functioning at the district level forms the State Cooperative Bank. The present organization of the co-operative in India is based on the recommendation made by the Maclagan Committee. In 1919, the Montague Censored Act made co-operation a provincial subject. Since then, All State governments have passed separate Co-operative Societies Acts.

Although co-operative banks in India have shown progress since their establishment, there still exist a number of defects in the organisation. This has led qualitative improvement to suffer. However, the Reserve Bank of India took the initiative to revitalize, reorganized and promotes the growth of co-operative bank in India. Under the Banking Regulation Act of 1949, Cooperative banks have been brought under the control of the Reserve bank of india.