Credit Co-operatives in India

8/6/2019 Credit Co-operatives in India

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CREDIT CO-OPERATIVES IN INDIA


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CO-OPERATIVE BANKING

Definition:A mutual society formed, composed n governed by working people themselves

for encouraging regular saving n granting small loans on easy terms of interest

and repayment.

OBJECTIVES:

1. Making available loans at concessional rates.

2. Most effective use of the loans they advance.

3. Draw on the source of funds outside the society to finance productive

activities.

4. Reduse the risks in lending.5. Motivate farmers to invest in productive ventures.


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CREDIT CO-OPERATIVES

A Co-operative Credit Society also known asPRIMARY AGRICULTURE CREDIT (PAC).

MEMBERSHIP:

1. PAC can be started with 10 or more persons

belonging to village.

2. Value of each nominal share is nominal, even thepoorest farmer can become a member.


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FEATURES:

1. Liability of each member is fully responsible

2. The management is under an elected body

consisting of PRESIDENT, SECRETARY andTREASURER.

3. Profits are used for the welfare of the village.

4. Stepped up their advances to the weakersection.


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WEAKNESSES OF PACS

1. Most of PACS are weak, not able to meet fully

the production-oriented credit needes.

2. Do not ensure adequate and timely credit for

borrowing farmers.

3. Overdues are increasing, indicating the failure

of PACS

4. Co=operative credit forms a small portion of thetotal borrowings of the farmers.


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Co-perative credit structure


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Management Aspect of Credit

Co-operatives

MANAGING COMMITTEE

BOARD OF

DIRECTORS

CHAIRMAN CEO

EXECUTIVES


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Working of Co-operative bank

1. The managing committee is responsible for the

general mgt of the bank.

2. The member elect the BOARD OF DIRECTORS,

who supervise the functioning of themanaging committee.

3. The chairman is responsible for taking

decitions taken by BOD or managingcommittee.

4. The executives are the employee or managers.


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Problem faced by credit

co-operatives1. Lack of funds

2. Defective management & leadership

competition from private agencies

3. Government support

4. Lack of adequate co-operation from people.


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URBAN CO-OPERATIVE BANKS

THE FIRST URBAN CO-OPERATIVE BANK was setup at Kanji Baram in the Madras province.

NEED:

In order to relieve the middle class and smallincome groups.

The credit needs of the Urban people went onincreasing


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Provide following types of credit

1. Short term credit on security of gold/silver tothe members.

2. These credit are hypothecated.

3. Cash credit is offred to professional artisants.

4. Credit for self employment to artisants.

5. Credit to small scale industrialists.

6. Financilal support for small business like

milk. Poultry etc.


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Defects in the working of Urban co.op

credit scheme

1. Uneven development of the Urban credit

scheme.

2. Management is inefficient.3. Help a high portion of liquidity, which reduces

their profitability.

4. Do not provide much credit for small producers.


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Co-operatives in India

Saraswat Co-operative Bank Ltd.

Shamrao Vithal Co-opeative bank ltd

Kapol co-operative bank ltd

Greater bombay co-operative bank ltd

Abhudaya co-operative bank

Mercantaile co-operative bank

Memom co-operative bank


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SARASWAT CO-OPERATIVE BANK LTD.

Founded on 14th sept, 1981.

Objective:

To provide temporary accommodation to itsmembers in events such as weddings, repayment

of debt, medical expences.

The bank is the 1st co-operative bank to provide

mechant banking services.


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The bank established a strong foundation in

terms of its membership, resources, assets and

profit.

Acquisitions the mantra for Saraswat bank:

Largest multistate co-operative bank.

It has its branches in Maharashtra, Delhi union

territory of Daman n Diu, Madhya Pradesh and

Gujarat.

The bank also got clearence to increase its sharecapital to Rs. 300 crore.


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THE KAPOL C0-OPERATIVE BANK LTD.

Established on 14th oct 1939 by late RajratnaKhushaldas Kurji Parekh.

1st bank to introduce Demat services in May

1999.The bank has installed the necessary software

and is offering Core Banking Solutions.


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SUGGESTIONS

1. Large scale enterprices the cooperative sectorrequire huge fund. Cooperatives should beencouraged to enter into capital market.

2. The state government can act as as venturecapitalist.

3. Cooperatives can evolve deposit insuranceschemes, to instill confidence among the

depositors, both urban and rural.4. It should intansify its linkage with NGOS or self

help group.


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Role of manager

Motivating cooperatives.

Enabling employee high perfomance.

Creating an environment for innovation.

Team leadreship.

Facilitate communication and public relation.

Quality management.


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CONCLUTION

Professionalism in the field ofcooperative

enterprices will upgrade the quality of staff.

The leadership with with vision,dedication and

commitment and above all innovative approchcan help in perserving cooperative identity in the

era of competition.


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Peace and well-being are not only relevent to co-

operatives but co-operatives are relevant to the

peace making process in communities and

societies throughout the world.

THANK YOU


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Made by:

Abhinav shah

Karan salla

Pratik vishwakarmaRishabh ganeriwala

Rupali patil

Sri ganpathy

Taibah shiliwala

Credit Co-operatives in India

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