Cooperate Bank Movement

Topics: Cooperative, Cooperatives, Credit union Pages: 11 (3159 words) Published: March 12, 2014

The co-operative movement in India is very important since it is an agriculture country. The co-operative movement in India continues to develop with time. It was in the year 1904 that the Co-operative banks in India started. Co-operative movement in India is the result of a deliberate policy of the state and is vigorously pursued through formation of an elaborate governing infrastructure. The successive five year plan looked upon the co-operation movement as the balancing sector between public sector and private sector. States of Maharashtra and Gujarat are developed while Andhra Pradesh, Rajasthan and Karnataka have shown progress and the other states are developing with progress of the co-operative movement. This project focuses on the importance of co-operative bank movements in regional rural areas. India is the land of co-operatives and has the largest number of co-operatives. Co-operatives represent the basic qualities of people. Our day starts with the consumption of milk, and ends with chocolates after dinner, all have some contribution of the co-operative movement. So the co-operative movement has touched the lives of people in one way or another. India started the co-operative movement with poor people to benefit their quality of life. There are small and large co-operative establishments. In India the industrial co-operatives in the fertilizer sector, milk sector, sugar sector which have come up a long way to compete with the big industries have maintained their structure of primarily serving to the poor The Co-operative moment is defined as, “Voluntary movement of the people, carried out democratically by pooling together their resources or carrying on the given activity with the purpose of achieving or securing certain benefits or advantages which given to people cannot individually and with the purpose of promoting certain virtue and values such as self help, mutual help, self reliance and general goods of all.”

Co-operative movements have developed all over the world for more than 200 years, providing essential service which otherwise be unattainable. Co-operative movements have been very successful in third world war countries by helping people to provide for themselves. During the British rule, Nicholson a British Officer in India suggested to introduce Raiffersen model of German agricultural credit Cooperatives in India. As a follow-up of that recommendation, the first Cooperative Society Act of 1904 was enacted to enable formation of "agricultural credit cooperatives" in villages in India under Government sponsorship. Co-operative s were to get direct legal identity after the enactment of 1904 act, as every agricultural Co-operatives was to be registered under that act only. The 1904 Cooperative Societies Act was repealed by 1912 Cooperative Societies which provided formation of Cooperative societies other than credit.  Under 1919 Administrative Reforms act, Cooperatives was made a provincial subject making each province responsible for Cooperative development. The impulses of the Indian freedom  movement gave birth to many initiatives and in situations in the post independence era in India and armed with an experience of 42 years in the working of Multi Unit Cooperative Societies and the Multi-Unit Cooperative Societies Act, 1942, the Central Government enacted a comprehensive Act known as Multi State Cooperative Societies Act, 1984, repealing the Act of 1942.  The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co-operative movement originated in the West. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary co-operative banks....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Bank Essay
  • Cooperative Banks Essay
  • Labor Movement Essay
  • Movement Essay
  • Essay on Bank Notes
  • Essay about Bank
  • Bank Lending Essay
  • Bank Essay

Become a StudyMode Member

Sign Up - It's Free