Originally Posted by abhishreshthaa
There are two main categories of the co-operative banks.
(a) Short term lending oriented co-operative Banks - within this category there are three sub categories of banks viz state co-operative banks, District co-operative banks and Primary Agricultural co-operative societies.
(b) Long term lending oriented co-operative Banks - within the second category there are state co-operatives and rural development banks.
The co-operative banking structure in India is divided into following main 5 categories:
Primary Urban Co-op Banks
Primary Agricultural Credit Societies:
The Primary Co-operative Credit Society is an association of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived from the share capital and deposits of members and loans from central co-operative banks.
The borrowing powers of the members as well as of the society are fixed. The loans are given to members for the purchase of cattle, fodder, fertilizers, pesticides, implements, etc.
District Central Co-op Banks:
These are the federations of primary credit societies in a district and are of two types – those having a membership of primary societies only and those having a membership of societies as well as individuals.
The funds of the bank consists of share capital, deposits, loans and overdrafts from state co-operative banks and joint stocks. These banks finance member societies within the limits of the borrowing capacity of societies. They also conduct all the business of a joint stock bank.
State Co-operative Banks:
The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India.
The state co-operative banks lend money to central co-operative banks and primary societies and not directly to farmers.
Land Development Banks:
The land development banks are organised in 3 tiers namely, state, central and primary level and they meet the long term credit requirements of the farmers for developmental purposes. The state land development bank overseas the primary land development banks situated in the districts and tehsils in the state.
They are governed both by the state government and Reserve Bank of India. Recently, the supervision of land development banks has been assumed by National Bank for Agriculture and Rural Development (NABARD). The sources of funds for these banks are the debentures subscribed by both central and state government. These banks do not accept deposits from the general public.
It was really appreciable and i am sure it would help many people. Well, i found some important information Principles of Co-Operative Sector and wanna share it with you and other's. So please download and check it.