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					International Indexed & Referred Research Journal, April, 2012. ISSN- 0974-2832, RNI-RAJBIL 2009/29954; VoL. IV * ISSUE-39
                                    Research Paper - Commerce
                Financial Involvement of Urban and Rural
                           Co-operative Credit

                 * Prof. S. S. Gavane                                                              April , 2012
      * Assot. Prof. Dept. of Commerce, R. B. Attal College, Georai, Beed.
Introduction:                                            there is a tremendous potential for these cooperatives,
          The Cooperative Movement in India has con- considering the huge production of the fruits and veg-
tributed to the rural development of the country. etables as well as other agricultural produce in
Though the movement has developed in different States Maharashtra.
of the country not in the uniform manner, some of the               The Government of Maharashtra has recently
States like Maharashtra, Gujrath, Karnataka, Andhra passed various amendments in the Maharashtra Agri-
Pradesh have shown tremendous growth of the Coop- cultural Produce Marketing (Regulation) Act, 1963, on
erative movement in these States. The cooperatives the lines of Model Act prepared by the Govt. of India
were considered as the balancing force between the and has introduced the provisions for establishment of
private sector and the public sector. The advantages of Private Markets, Farmer Consumers Markets, Direct
the private sector and the public sector could be very Marketing, Single License for the Traders and the
well achieved through the cooperative sector and the Contract Farming. These amendments will have very
disadvantages associated with the private sector and good effect on the growth of agro-processing sector,
the public sector could be eliminated in the cooperative exports of fruits and vegetables and value added pro-
sector.                                                  duce from agriculture and the development of retail
          The societies, which were promoted by the chain management, as these sectors will be able to
leadership having vision and who managed these co- source the requirement of their produce directly from
operatives well, have become successful; whereas the the farmers. This will also have good impact on large
cooperative societies, which suffered from the lack of private investment coming in to agricultural sector,
dynamic leadership, were mismanaged and these co- development of infrastructure like pre-cooling units,
operative societies became failure. Maharashtra State cold storages, cold chain for transportation of perish-
is one of those States in our country, which can boast able produce, putting up of the processing industries
of claiming that the cooperatives in the State are man- etc.
aged by the elected representatives by the members                  The employment generation in agriculture and
and the elections do take place regularly except in few allied sectors will also be improved. It is envisaged that
cases where there are problems of mismanagement. because of these changes the overall economy will
Out of the total number of 1.75 lakhs cooperative soci- grow and the farmers will get better returns for their
eties in Maharashtra there are hardly few hundred produce. This will also have the positive effect on
cooperative societies, where the administrators are quality and productivity improvement in agriculture.
functioning. This shows the Cooperative Movement Besides 20,000 PrimaryAgricultural Credit Coop. Soci-
in Maharashtra is functioning purely on democratic eties, 34 District Central Cooperative Banks and the
principles.                                              Maharashtra State Cooperative Bank, there are about
Progress of Cooperative:                                 25,000 Urban Cooperative Credit Societies in
          The cooperatives have made tremendous Maharashtra. While the Primary Agricultural Credit
progress in Maharashtra. Some of the sectors in coop- Cooperative Societies give loans to the farmers for
eratives have been highly successful, whereas some of agriculture and for crop production, the urban credit
the sectors could not make any success. The examples societies cater to the needs of the urban population,
of successful societies are found in large number in the particularly to meet their requirements of credit for
areas of Cooperative Sugar Factories, Dairy Coopera- consumer articles.
tives, Urban Banking, whereas almost 50 per cent of the Financial Inclusions:
Primary Agricultural Credit Coop. Societies and 50 per              The cooperative credit sector is operating in
cent of the District Central Cooperative Banks are in a both Urban and Rural areas. The Urban credit societies
very bad financial position. The Agro Processing Co- cater to the needs, primarily, of the urban population.
operatives also could not make any progress, though It also caters to the household needs of the rural popu-
   SHODH, SAMIKSHA                                       AUR           MULYANKAN                                    63
International Indexed & Referred Research Journal, April, 2012. ISSN- 0974-2832, RNI-RAJBIL 2009/29954; VoL. IV * ISSUE-39
lation. Recently the urban cooperative credit societies        proach in functioning and their policy framing like Rates
in rural areas have started financing the agricultural         of Interest on deposits, Rates of Interest on loans etc.
needs of farmers. This effort was initiated and pro-           It is necessary that borrowers get loans at reasonable
moted by the Government by issuing the Govt. Reso-             rate of interest so that any business becomes viable
lution. The presence of credit societies in the vicinity       and borrower is able to repay loans. The financial in-
provides confidence of easy availability of funds, to          volvement of both the urban and rural masses in the
both urban and rural masses.                                   cooperative credit societies by way of deposits always
           The credit societies are now intending to di-       demanded its safety. The consolidated effort to quali-
versify by extending their services such as cash trans-        tatively strengthen the organization and increase its
fers and other permitted banking operations. The credit        scope is the need of the time.
societies' Federation is trying to play a prominent role       Conclusions:
to have joint venture operations along with the similar                  Cooperative societies have been managed
international organizations. The State Federation of           efficiently and have been able to serve their members
Urban Credit Societies in Maharashtra has decided to           and public in a most desirable manner. The urban co-
extend the insurance to the Depositors of Urban Credit         operative credit societies in the State and in the country
Societies, by forming their own Deposit Insurance              must remember that they have to face competition with
Scheme. This is a unique revolutionary decision and it         big Multi-National Banks and the Commercial Banks.
will go a long way in building confidence of the deposi-       These societies should therefore, be vigilant in ad-
tors in these societies.                                       vancing loans and in no case loans, which cannot be
           The huge membership base available for both         recovered should ever be sanctioned. These societies
the urban cooperative banks and cooperative credit             must adopt the modern management practices includ-
societies must be utilized for the ultimate up-liftment of     ing computerization in their working, professional train-
both the members and the organizations. This base can          ing to their employees and to their members of the
be utilized as channels - both forward and backward -          Board and should keep their level of functioning very
in respect of different managerial aspects such as mar-        competitive. This only can bring success to these
keting, distribution, services etc. For achieving this,        societies.
both these organizations should have integrated ap-

R E F E R E N C E
1 Anagol Malati - Banking in Maharashtra - Regional Profile,   3 Dastane Santosh, (2002), Agriculture, Glimpses of
Himalaya Publishing House, New Delhi.                          Maharashtra, Dastane Ramchandra Company, Pune.
2 Bhadouria B.P.S. - Rural Development Strategy and Perspec-   4 Elavia - The study of cooperative land development banking
tive -- Anmol Publications, Delhi.                             in Gujarat, M. S. University of Baroda 1979.




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