what is co-operation

8/7/2019 WHAT IS CO-OPERATION

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CO- OPERATIVES &RURAL

MARKETS


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A PROJECT ON ROLE OF FINANCIAL

INSTITUTION IN AGRICULTURALMARKETING

SUBMITTED BY-SIDDHESH SHETYE

VRUSHALI TAREPAWAN SHROFF

GAURAV SUVARNA

UNDER THE GUIDANCE OF

PROF.MS.SHILPA MORE


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WHAT IS CO-OPERATION ?

Co-operation is a form of organisation ,

wherein persons voluntarily associatetogether as human being on the basis ofequality , for the promotion of theeconomic interest of themselves.


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WHAT IS CO-OPERATIVE?

A co-operative defined as a business

owned and controlledequally by thepeople who useits services orby thepeople who workthere.


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PRINCIPLES OF CO-OPERATION

Voluntary and open membership .

Democratic control .

Limitedinterest on share capital .

Equitabledistribution ofsurplus .

Self-help and mutual-help .

Co-operativeeducation.

Co-operation among co-operatives .

-By International Alliance


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OBJECTIVES OF CO-OPERATIVE.

Removal ofMiddlemen.

Removal ofCapitalism Evils .

Increasingthe weakersectioneconomic status .

Abolition ofSocial Inequalities .

Neutrality inReligion and Politics .

In creasingthe Prosperity ofthe community .

Raisingthe Moral Standards ofits Members .

Development ofco-operativeLife.


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ROLE OF FINANCIAL INSTITUTIONS IN

AGRICULTURAL MARKETING .

There arefollowingtypes offinancial institution

inrural areas .

1. Commercial Banks.2. Co-operatives Banks

3. NABARD

4. Regional Rural Banks


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TYPES OF CREDIT.1) Short-term Loans .

2)Medium-term Loans .

3)Long-term Loans .


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NATIONAL BANK FOR AGRICULTURE

AND RURAL DEVELOPMENT

(NABARD) Function of NABARD

1)It works as an apex body to look after the creditrequirements of the rural section .

2)It has authority to oversee the functioning of the co-operative sector

3)It provides short term credit to state co-operativebanks for seasonal agriculture operation

4)It provides medium term credit to state co-operativebanks RRBs for approved agricultural purpose .


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5) It provides medium of long termcredit for investment in agriculture

6)It provides long term assistance in formof loans to state governments

7)It has been entrusted with theresponsibility of inspecting district

and state co-operative banks andRRBs . It also the inspection of stateland development banks and otherfederation is undertaken on voluntarybasis.

8)It maintains a r & d fund to be used topromote research in agriculture andrural development .


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STATE CO-OPERATIVES BANKS

They areeligibleto offeronly short-term loans.

TheSCBs operate atthe state level with branches withinthe state andthey carry on all function ofcommercialbanks .

The shareholders and memberofSCBs arethedistrictcentral co-operative banks (DCCBs) .

These banks operate atdistrict level .Primary societies,which areengagedindistributing creditto agriculturecalled as primary agriculture credit co-operative ( PACs)

.


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STATE CO-OPERATIVE

AGRICULTURAL AND RURALDEVELOPMENT BANKS (SCARDSBS)

They were earlier known as state land

development banks.

They provide medium-term and long- term loan .

19 such banks with 1219 branches spread over thedistrict are financing primary co-operativeagricultural and rural development banks locatedat the tehasil level .


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REGIONAL RURAL BANKS (RRBS )

They are called as grameen banks .

There are 196 RRBs in the country promoted by

commercial banks with the objective of catering to a verylimited jurisdiction of one or two district and they arefarmer friendly .

They are allowed to open branches within their area ofoperation and currently there are six metropolitan , 348

urban , 1875 semi-urban and 12,084 rural branches .


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LOCAL AREA BANKS

The establishment of local area banks is relatively newand as yet only few banks are functioning in the country.

The primary idea is to encourage big money lenders and

other informal agencies them within an institutionalstructure .

The funds available for credit distribution among theinstitutional agencies was not sufficient to meet the total

requirements of the rural areas .

So , these , non-institutional agencies have been operatingnot only to fill the lacuna, goods , for social function , etc

what is co-operation

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