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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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