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Organizational Structure of a Co-operative
Organizational Structure of Co-operative Institutes
 With 70% of the population engaged in agriculture of which majority of them being poor, the co-operative movement in India was more or less confined toagricultural credit thus forming the oldest and the mist important forms of co-operative movement.The credit co-operatives can be classified as either 1.
 
Agricultural credit co-operative2.
 
 Non-agricultural credit co-operative
 Agricultural Credit Co-operative
The first co-operative legislation in respect to credit was the co-operative creditsociety act 1904. The society was then known as
 Agricultural Co-operativeCredit Society
, which engage themselves mainly in the disbursement of credit totheir members, following the Reiffeisen pattern of organization.
Agricultural Credit Co-Operative Structure
1.
 
Short term and medium term: It is basically a 3-tire system with primarycredit society at village level, central co-operative banks at district level andalso the state co-operative banks at the state level. (They are also the APEX banks)2.
 
The long-term agricultural co-operative structure: is of 2-tires.The primary co-operative land development bank at sub-divisional level andthe state co-operative land development bank at state level.3.
 
Short term and medium term co-operative credit: It’s a 2-tire system with primary co-operative credit society at the village level affiliated to thedistrict central co-operative bank which is also APEX co-operative bank.
 
Features:
1.
 
A village is to be the limit for societies membership and area of operation.2.
 
Members must know each other personally and admit no new member whom they don’t trust.3.
 
The local members on voluntary basis carry out administration of thesociety.4.
 
Liability of members is unlimited.5.
 
All profits to be carried in the visible reserve fund.6.
 
Loans to be given to members for definite objectives. 
Non Agricultural Credit Co-operative Society
I.
 
Short term credit: Duration is 12-15 months and is provided for meeting theseasonal agricultural purchase of manure implements seeds etc. The credit is provided at the beginning of the season and is collected after the harvest issold. This is known as crop loan.II.
 
Medium term: Loans ascending from 15 months to 5 years for purchasingfarm animals, carts and other heavy implements. It is also given for diggingwells, land or consolidation of land holdings.III.
 
Long Term: Loans granted for a period of more than 5 years to make permanent improvements of land declaiming waste lands, tube wells, purchase of tractors etc. Such loans are to be repaid within 20 yearsmaximum. The short and medium term loans are provided by theagricultural credit societies but co-operative land development banks provide the long-term loans.
Urban Co-operative Banks
 
 
The urban co-operative banks are co-operative banks, which are situated in theurban areas. They play an important role for the benefit of small industrialist,trader, middle class population etc.
The Role
1.
 
They organize and bring together middle and working class population inurban and semi-urban areas and inculcate in them the habit of thrift and self-help and acquaint them with the elements of banking principles.2.
 
Mobilization of savings and fulfilling the needs of finance for rural,industrial and other development functions.3.
 
Providing credit on reasonable terms to protest them from exploitation bythe hands of moneylenders and unscrupulous agency.4.
 
To make available essential banking facilities to remote areas and to provide
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