Role of co-operative bank in rural development

Topics: Bank, Cooperative, Credit union Pages: 7 (951 words) Published: September 25, 2013
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Co-operative Banks in India: Functioning and Reforms

Co-operative banks are an integral part of the Indian financial system. They comprise urban co-operative banks and rural co-operative credit institutions. Co-operative banks in India are more than 100 years old. Urban Co-operative Banks (UCBs) also referred to as primary cooperative banks?play an important role in meeting the growing credit needs of urban and semi-urban areas of the country. UCBs mobilise savings from the middle and lower income groups and purvey credit to small borrowers, including weaker sections of the society. Scheduled UCBs are under closer regulatory and supervisory framework of the RBI. Rural cooperative banks operate mainly for the benefit of rural areas, particularly the agricultural sector. Though much smaller as compared to scheduled commercial banks, co-operative banks constitute an important segment of the Indian banking system. They have an extensive branch network and reach out to people in remote areas. They have traditionally played an important role in creating banking habits among the lower and middle-income groups and in strengthening the rural credit delivery system. This book focusing on UCBs?provides a vivid account of the functioning of co-operative credit institutions in India including recent reforms. Besides, it includes a case study of the working of UCBs in the Indian state of West Bengal.


1. History of Co-operative Movement - Origin of Co-operative Movement - Co-operative Movement in India
- Origin of Urban Credit Movement in India
2. Co-operative Banking: Conceptual Framework - Problem of Development - Concept of Cooperation
- Concept of Co-operative Banking
- Review of Existing Literature
3. Urban Co-operative Banks - Urban Co-operative Banks
- Problems Encountered by Urban Co-operative Banks
- Review of Existing Literature
- Working Group on IT Support for Urban Co-operative Banks
- Working Group on Umbrella Organization and Constitution of Revival Fund for Urban Co-operative Banks 4. Rural Co-operative Banks - Rural Co-operatives in Historical Perspective - Short-term Rural Co-operatives

- Long-term Rural Co-operatives
- Significance of Rural Co-operatives
- Primary Agricultural Credit Societies (PACS)
- Regulatory Framework and Supervision
- Triangular Regulation of Rural Co-operatives
- Vaidyanathan Committee on Rural Co-operatives
- Self-help Group (SHG) for Micro Credit
- NABARD and the Co-operative Sector
- Rural Infrastructure Development Fund (RIDF)
- Kisan Credit Cards (KCC)
- Concluding Observations
5. Structure and Management of Urban Co-operative Banks - Introduction - Structure of Co-operative Credit Institutions
- District Central Co-operative Banks (DCCBs)
- State Co-operative Banks (SCBs)
- Urban Co-operative Banks (UCBs)
- Objectives and Functions of the UCBs
- Area of Operation of the UCBs
- Management of the UCBs

- Resources of the Urban Co-operative Banks
- Investment of the Urban Co-operative Banks
- Different Gradation of the Urban Co-operative Banks
6. Regulatory Framework for Co-operative Banks - Early History - Cooperative Societies Act of 1904
- Co-operative Societies Act of 1912
- Reforms Act of 1919
- Provisions of Co-operative Acts Relating to Co-operative Credit Societies - Application of Banking Regulation Act 1949 to Co-operative Societies - Duality of Control
- Licensing Policy
- Prudential Regulations
- Vision Document
- Memorandum of Understanding (MoU) with Governments
- Differentiated Regulatory Regime
- Supervisory Regime for UCBs
7. Summary and Conclusions - Origins of Cooperative Movement - Legislative History of Co-operatives
- Importance of Co-operative Banks
- Financial Sector Reforms and Co-operative Banks
- Structure of Cooperative Banking in India
- Vision Document and Medium-Term Framework (MTF) for UCBs
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