Cooperative Credit Society

HARSHIT VIJ
AYUSH BANSAL
ASHUTOSH
VIRAJ

CO-OPERATIVE SOCIETY
Aco-operativesociety is anautonomousassociation of persons
unitedvoluntarilyto meet their common economic, social, and
cultural needs and aspirations through a jointly owned
anddemocraticallycontrolledenterprise.
Cooperatives include non-profit community organizations and
businesses that are owned and managed by the people who use
theirservicesorbythepeoplewhoworkthereorbythepeoplewho
live there, hybrids such as worker cooperatives that are also
consumer cooperatives orcredit unions, multi-stakeholder
cooperativessuchasthosethatbringtogethercivilsocietyandlocal
actors to deliver community needs, and second and third tier
cooperativeswhosemembersareothercooperatives.

Cooperative Society
Cooperativecreditsocietyareusedas
mobilizingruralsavingandstimulating
agriculturalinvestment
44%oftheinstitutionalcreditisaccredited
toCooperativeCreditsocietyinIndia
TheyareestablishedasCooperativeand
undertheMinistryofCooperation

ROLE OF RBI
TheAllIndiaRuralCreditSurvey
Committeeassignedcrucialroletothe
RBIinbuildingupthecooperativecredit
organization.
Todrawschemesincollaborationwith
GovernmentofIndiaandtheState
Government
Toprovidefundtothestategovernment
forcontributiontothesharecapitalofthe
cooperativecreditsocieties.

TwofundsweresetupunderRBIAct
1. TheNationalAgriculturalCredit(long
termoperation)Fundand
2. NationalAgriculturalcredit(stabilizing)
Fund.
. RBIwasappointedasanactiveagencyto
promoteCCS.
. RBIdevelopedthecreditnormsand
rationalizedthelendingprocess

Twotypesofcreditsocietiesemerged:
1. PrimaryAgriculturalcreditsociety
2. Cooperativecreditbanks
a. StateCooperativeAgriculturalandrural
developmentbank
b. PrimaryCooperativeAgriculturaland
ruraldevelopmentbank

Organizationalstructure
CoopBanks

PrimaryUrbanCoopBanks

RuralCopBanks

Sht.Term.Cr.Str

2tirestr.

3tirestr.
CCB

LongtermCr.Str

UnitaryStr.

FederalStr.
PCARDB

PAC
PAC

PCB

PrimaryAgriculturalCreditSocieties(PACS)
Theyhavebeentoprovidegrassrootlevel
creditdisbursementinruralareas.They
dependonborrowingsfromhigher
organization.
UrbanCooperativeCredit(PCBs):
Establishedtoincreasebankinghabitwith
lowerandmiddleincomegrouppeople.
Theyoperatethroughprimarycooperative
banks(PCB)

 StateCooperativeBanks:
Theyareinthethreetiresystemandmeet
short and medium term credit. There are
28suchorganizationsinIndia.
CentralCooperativeBanks(CCBs):
Theyformthemiddletireinthetreetire
system.Theprovideshorttermcredit.

RoleofCreditCooperativeSocieties:
1. Providegrassrootlevelruralandurban
credit.
2. Developthrifthabit
3. Takepartinshorttermandmidterm
creditexpansion
4. AssistNBARDinMicroFinance
5. Actasacentralpointofdisbursementfor
allruralandurbanshortandmidterm
refinance