Banking cooperativePRESENTED BY: KOMAL SIKHWAL & ANKITA SHARMA

PRESENTED TO: PROF. MITESH PATEL

Flow of presentation Overview and definitionStructureFeaturesobjectivesImportanceFunctionsPrinciplesProducts and services

Overview A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.

Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest.

Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts)

Structure of India’s Co-operative Banks

The State Co-operative Banks (SCBs), Central Co-operative Banks (CCBs) and Urban Co-operative Banks(UCBs) can normally extend housing loans up to Rs 1lakh to an individual. The scheduled UCBs, however, can lend up to Rs 3 lakh for housing purposes. The UCB scan provide advances against shares and debentures.

To support the financial requirement of people

Co-operative banks are categorized at various dimensions and at various levels

Co-operative banking structure consists of two main segment:-(a)Agricultural Credit(b)Non-Agricultural Credit

A

Agriculture areas(Rural

areas)

Short and

medium term credit

Long term credit

PACs(Base Level)

LDB

CLDB

PLDB

CCB(District Level)

SCB (Apex Level)

Non- Agricultural sector

(Urban and Semi-urban

Areas)

Urban Cooperative

Banks

Co-operative banks in India finance….

Rural Areas Urban Areas

• Farming Small Scale Units• Cattle Industries• Milk Home finance• Personal finance Self Employment Personal finance

Features

Customer-owned entities: In a co-operative bank, the needs of the customers meet the needs of the owners, as co-operative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximise profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services.

Democratic member control: Co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of “one person, one vote”.

Profit allocation: In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operative’s products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member.

OBJECTIVES OF CO-OPERATIVE BANKS

ObjectivesTo protect the rural section from greedy money lendersTo provide easy credit facilities to the farmersTo promote and develop cooperative societies in the stateTo provide training and education facilities to farmersOverall development of rural areas

ImportanceIntegral PartCredit To AgricultureImportant instrumentSmall scale operationExtensive branch network

FUNCTIONS OF CO-OPERATIVE BANKS

Co-operative Banks are organised and managed on the principal of co-operation, self-help, and mutual help. They function with the rule of "one member, one vote" function on "no profit, no loss" basis. Co-operative banks, as a principle, do not pursue the goal of profit maximisation. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities.

Co-operative bank do banking business mainly in the agriculture and rural sector. However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan areas also. The urban and non-agricultural business of these banks has grown over the years. The co-operative banks demonstrate a shift from rural to urban, while the commercial banks, from urban to rural. Co-operative Banks belong to the money market as well as to the capital market. Primary agricultural credit societies provide short term and medium term loans.

Co-operative Principles

Voluntary and open membership Democratic member control Member economic participation Autonomy and independence Education, training and information Co-operation among Co-operatives Concern for Community

PRODUCTS AND SERVICES

DEPOSITS SERVICES Saving Bank Account Clearing Current Account Safe Deposit Locker Recurring Deposits ATM Fixed Deposits Demand Draft/Pay Order Cash Certificate

LOANS Loans to Salaried employees Home Needs Loan Loan to Pensioners Education $ Housing Loan

Anyonya Co-operative Bank Limited

Anyonya Co-operative Bank Limited (ACBL) located in the city of Vadodara (formerly Baroda) in Gujarat, is the first co-operative bank in India.

ACBL was established in 1889 with the name Anyonya Sahayakari Mandali Co-operative Bank Limited, with a primary objective of providing an alternative to exploitation by moneylenders for Baroda's residents.

When it was started in 1889 it had just 23 members and 76 Indian rupees (Rs) of capital, which grew to Rs 873 in the first year.By 2006, it had grown up to more than 23,000 share holders and more than ten branches which are mainly located within Baroda city and some small towns surrounding it.

Introduction to The Gujarat State Co operative Bank Ltd

The Gujarat State Cooperative Bank was established in year 1960 and registered under the Gujarat state co-operative act, 1961.

The bank is already enjoying the status of scheduled bank and having requisite Banking License.

Nearly 28 lacs farmers of 8100 PACs affiliated with GSCB through 17 DCCBs and a co-operative banking union are enjoying credit facilities.

It has also received the award as the Institution amongst the Best Performing Co-operative Organisation from the National Co-operative Union of India New Delhi.

Vision of Gujarat State Co operative Bank Ltd

To be the top most co-operative bank in the country providing able leadership to the co-operative structure for achieving a sustained growth and upliftment of small and marginal farmers.GSCB aims to promote a sound, strong and vibrant co-operative credit structure in Gujarat embedded with latest technology and computerization, providing innovative and affordable banking products so as to be an active partner in the progress of the state and contribute to its social and economic development.