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Contents:
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Introduction Indian economy- woven around Agriculture
60% of population depends on Agriculture
Credit is & would be the key in productionprocess !"I have a ma#or role $
Co-operatives :tarted functioning almost 00 years ago$
Co operative 'an(s in India are registeredunder the Co-operative ocieties Act )6*$
+overned by the 'an(ing !egulations Act ))
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Co-operative 'an(s
Co-operative 'an(s are organised andmanaged on the principal of co-operation, self-help, and mutual help.
.hey function with the rule of /onemember, one vote".
"unction on /no prot, no loss/ basis$
Co-operative ban(s as a principle do notpursue the goal of prot ma1imisation$
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trengths:2ast organi3ational setup- worldslargest system with $* la(h societies$
)$45 crores membersuge human resource $
Co-operatives accounts *% share in
rural credit for agriculturemall farmers 7 8% of co-op membership
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9ea(nesses:9ea( resource base
Inadeuate nancial margin
!esource planning 7 needs upgradation
Co -op have to ad#ust in competitiveenvironment$
Inspite of long history 7 unable to meetcredit needs$
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Autonomous member driven & self
sustaining- to serve the people for whomthey have been created$
;a#or aspect 7 ow to enhance the
capabilities of leadership reuiressel
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Cooperativn system
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=evelopment of gross root levels- ensure
sustainability in long run>ower level co-op:- not shoc( absorbers for
business ris($
;iddle tier: =istrict Central Co-operatives?@ rd are wea(
oor recoveries high over dues highestablishment costs
Bnable to generate adeuate revenue:impairing the ability to meet repaymentobligations
;ismatch eecting entire co-op system$
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Dnforce strong credit discipline
rudent borrower selection
Innovation in terms of creditproduction
9eightage to recoveries in staperformance$
Avoid indiscriminate recovery powers
!epayment schedule has to be rewor(ed$
rofessionali3ation $
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2enture capital nance$
!'I EFG2-)))H Credit Information'ureau
Curb FAs
FA'A!=- promoting integrated ruraldevelopment
Co-op en#oying largest share ofrenance from FA'A!=$
Co-operatives needs reforms$Bnable to disburse mandate 5% net
credit for agriculture$
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Attitudinal change of sta & have to
understand problems of rural population$
.hey may be made responsible for theperformance of the branch
!eward in terms of bonus lin(ed to theirproductivity$
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JCC Announced in )))-8000$
"le1ible credit disbursal- leading to
reduction in defaults$ "ast revising scales of nance- no
undernancing
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=espite of wide networ( of rural ban(branches 7 poverty alleviationprogramme aim at self employmentopportunities through ban( credit poorest of the poor remain outside thefold$
FA'A!= focusing on creating
alternative organi3ations$
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Innovative co-operatives sustain inlong run can better serve the needs
of Agriculture
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