INTRODUCTION ABOUT CO-PERATIVE BANK

Farmers in India are scattered all over the country and need short term borrowings for agricultural purpose. This need is not fulfilled by commercial bank, which unsuited for financing agricultural. Land which these farmers can offer to cover bank advances is not generally accepted as security by commercial bank therefore special type of banks are necessary for the financing of agricultural co-operative banks is to offer banking facilities to persons of limited means requiring credit for productive use in the use of the land & Labours at their disposal. In 1914 the government of India appointed committee under sir " EDWARD MAELAGAN " to survey the progress of co-operation in the country. The committed its report in 1915 in which it made several recommendations the principle one being the institution of provisional co-operative banks to save as apex bank in the hierarchy in India is based upon the findings of this report. In 1919 the Montague Chelmsford Act made co-operation a provincial subject. Since then all the state government passed their own separate co-operative societies act. The co-operative banking structure in India may be divided in three parts. -

A) Primary Co-operative Credit Societies. B) Central Co-operative Bank. C) State Co-operative Bank.

A) Primary Co-operative Credit Societies:- The primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular loyalty. The funds of society are derived from the share capital & deposits of members and loan some central co-operative bank. The borrowing power of the members as well as of the society is fixed. The loans are given to members for the proposed of the cattle, fodder, fertilizers and practices etc.
(B) Central Co-operative Bank. These are the federation of primary credit