A

SUMMER INTERNSHIP PROJECT REPORT

On

“STUDY ON CUSTOMER SATISFACTION IN JCOM”

At

THE JUNAGADH COMMERCIAL CO-OPERATIVE BANK LTD.

Submitted To:
Institute Code :- 789
Institute Name :- Christ Institute of Management

Under the Guidance of

Prof. JAINISHA PANDYA

In Partial fulfillment of the requirement of the award of the Degree of Master of

Business Administration(MBA)
Offered By
Gujarat Technological University
Ahmedabad

Prepared By :
BABI FARHANKHANJI AJIMKHANJI
207890592023
M.B.A (Semester – II)

Month & Year :- September 2021

I
 STUDENT DECLARATION

I hereby declare that Summer Internship Project Report titled “Study on Customer
Satisfaction in JCOM” of The Junagadh Commercial Co-operative Bank Ltd And
The Cooperative Bank Of Junagadh Ltd” in (The Junagadh Commercial Co-
operative Bank Ltd.) is a result of my own work and my indebtness to other work
publications, references, if any, have been duly acknowledged. If I found guilty of
copying from any other report or published information and showing as my original
work, or extending plagiarism limit. I understand that I shall be liable and punishable by
the university, which may include ‘Fail’ in examination or any other punishment that
university may decide.

Enrollment no. Name Signature

207890592024 Farhankhanji A. Babi

Place: Date:

II
INSTITUTE CERTIFICATE

III
CERTIFICATE OF EXAMINER

IV
COMPANY/ORGANISATION CERTIFICATE

V
PLAGIARISM REPORT

VI
 PREFACE

Practical knowledge in a student’s life is very important. It helps to know real life
situation and problems of life. Same in the case with the corporate world. Theoretical
knowledge is very much needed but practical knowledge is equally important. This
practical knowledge to a student is given in a form of training and sometimes
theoretical knowledge too is being imparted as information or knowledge sharing.

M.B.A is concerned with the practical and theoretical knowledge of real business
world. When we learn about business management, then at that time practical
knowledge is more important. The aim of improving training is based on the innovative
learning methodological constant improvement, cultivation of practical skill and
unwavering commitment to academic quality. Training helps a student to interact with
the experienced people of the corporate world and hence learn more from them. Here,
VII
the student learns how to apply the theoretical knowledge in practice. As per the
University, The Summer Internship Project subject for MBA SEM – II students it is
very important to carry out practical study in one organization.

The summer internship project has been done at The Junagadh Commercial Co-
operative Bank LTD. The internship gave me more practical exposure towards the
working of each section of the bank like shares, gold loan and account division. The
training did was more of operational side. Various information related to each
department have been shared by the bank and the bank provided better cooperation
towards the collecting of data related to the project.

VIII
 ACKNOWLEDGEMENT

It gives me pleasure to acknowledge the training imparted by the different

manager of The Junagadh Commercial Co-operative Bank Ltd. I would like to
thank the Mr. Rajesh Maradia and for cooperating with me during each stage of
my training and giving me a real work-life exposure towards the working of
banking system.

I would like to thank the Manager of different dept. for his active support and
cooperation towards me during the training period. I would also like to thank
the administration and H.R. Dept. for giving me an opportunity for getting
trained in this esteemed organization.

The active support of other staff, sub-staff was also present during the entire
training section.

Now, I would like to thank Dr. K. J. Thankachan, Principal Christ Institute of

Management for giving permission to do summer internship with RCCBL. I
would also like to acknowledge and thank Prof. Jainisha Pandya, SIP
coordinator for active guidance and scheduling the SIP program.

IX
 INDEX

Sr Particulars Page No.

No.
PART I 1.

1. Introduction of banking 2.

2. Banking instrument 3.

3. Recent trends in banking 4.

4. Major banks in Rajkot 6.

5. Banking overview 8.

6. Overview of various departments in RCCB 14.

7. SWOT Analysis 18.

PART II 19.

8. Research and Methodology 20.

9. Research Problem 21.

10. Literature Review 22.

11. Research Objective 27.

12. Scope of Study 27.

13. Research Design 28.

14. Source of Data 29.

15. Sampling Technique 29.

16. Sample of Study 29.

17. Tools and Techniques 30.

X
XI
 INTRODUCTION TO CO-OPERATIVE
BANKING

DEFINITION:

“A Co-operative bank, as its name indicates is an institution consisting of a

number of individuals who join together to pool their surplus savings for the
purpose of eliminating the profits of the bankers or money lenders with a
view to distributing the same amongst the depositors and borrowers.”

The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank
as a co-operative registered as a co-operative bank in terms of the Act whose
members –

1. are of similar occupation or profession or who are employed by acommon

employer or who are employed within the same business district; or

have common membership in an association or organisation, including a

business, religious, social, co-operative, labour or educational group; or

have common membership in an association or organisation, including a

business, religious, social, co-operative, labour or educational group; or

4. Reside within the same defined community or geographical area.

XII
 CO-OPERTIVE BANKING - AN INTRODUCTION:

Co-operative bank, in a nutshell, provides financial assistance to the people

with small means to protect them from the debt trap of the moneylenders. It
is a part of vast and powerful structure of co-operative institutions which are
engaged in tasks of production, processing, marketing, distribution,
servicing and banking in India. A co-operative bank is a financial entity
which belongs to its members, who are at the same time the owners and the
customers of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a common
interest. These banks generally provide their members with a wide range of
banking and financial services (loans, deposits, banking accounts…). Co-
operative banks differ from stockholder banks by their organization, their
goals, their Values and their governance.

The Co-operative Banking System in India is characterized by a relatively

comprehensive network to the grass root level. This sector mainly focuses
on the local population and micro- banking among middle and low income
strata of the society. These banks operate mainly for the benefit of rural
areas, particularly the agricultural sector.

OBJECTIVES OF STUDY

The Objective of the study of Co-operative Banking is to know the origin of

Co-operative Banks in India.

To know the role of Co-operative banks in India.

To know the importance of Co-operative Banks in India.

To know the types of Co-operative Banks.

XIII
To know the Development of Co-operative Banks in India.

XIV
 ORIGIN AND OPERATION OF CO-OPERATIVE BANKING

ORIGIN OF CO-OPERATIVE BANKING:

The beginning co-operative banking in India dates back to about 1904, when
official efforts were made to create a new type of institution based on
principles of co-operative organization & management, which were
considered to be suitable for solving the problems peculiar to Indian
conditions.

The philosophy of equality, equity and self help gave way to the thoughts of
self responsibility and self administration which resulted in giving birth of
co-operative. The origin on co-operative movement was one such event-
arising out of a situation of crisis, exploitation and sufferings.

Co-operative banks in India came into existence with the enactment of the
Agricultural Credit Co-operative Societies Act in 1904. Co-operative bank
form an integral part of banking system in India. Under the act of 1904, a
number of co-operative credit societies were started. Owing to the increasing
demand of co-operative credit, anew act was passed in 1912, which was
provided for establishment of co-operative central banks by a union of
primary credit societies and individuals.

Co-operative Banks in India are registered under the Co-operative Societies

Act. The cooperative bank is also regulated by the RBI. They are governed
by the Banking Regulations Act 1949 and Banking Laws (Co-operative
Societies) Act, 1965.

OPERATION OF CO-OPERATIVE BANKING:

Establishments:

Co-operative bank performs all the main banking functions of deposit

mobilisation, supply of credit and provision of remittance facilities.

Co-operative Banks belong to the money market as well as to the capital

market.

Co-operative Banks provide limited banking products and are functionally

specialists in agriculture related products. However, co-operative banks now
provide housing loans also.

UCBs provide working capital loans and term loan as well.

XV
The chief functions of Co-operative banks are: a. To attract deposit from
non-agriculturist,

To use excess funds of some societies temporarily to make up for shortage in

another,

To supervise and guide affiliated societies.

The basic principles on which a Co-operative bank works are:

A co-operative character of activities and trait of mutual aid of credit

granted.

Catering for collective organizations and their members.

Restriction on the number of individual votes.

As a result, during 2007-08, the Primary Cooperative Agriculture and Rural

Development Banks have again started lending for the Non-Farm Sector
including Jewel Loans.

Aiming at high rates on deposits and low rates on lending.

Limitation of dividends out of profits and bonus to depositors and borrowers

or grants to cultural or co-operative endeavour.

These banks are constituted of voluntary association, self-help and mutual

aid, one share one vote and non-discrimination and equality of members.
The co-operative banks are the organizations of and for the people.

ROLE OF CO-OPERATIVE BANKING

ROLE OF CO-OPERATIVE BANKING IN INDIA:

Co-operative Banks are much more important in India than anywhere else in
the world. The distinctive character of this bank is service at a lower cost
and service without exploitation. It has gained its importance by the role
assigned to them, the expectations they are supposed to fulfill, their number,
and the number of offices they operate. Co-operative banks role in rural

XVI
financing continues to be important day by day, and their business in the
urban areas also has increased phenomenally in recent years mainly due to
the sharp increase in the number of primary co-operative banks. In rural
areas, as far as the agricultural and related activities are concerned, the
supply of credit was inadequate, and money lenders would exploit the poor
people in rural areas providing them loans at higher rates. So, Co-operative
banks mobilize deposits and purvey agricultural and rural credit with a wider
outreach and provide institutional credit to the farmers. Co-operative bank
have also been an important instrument for various development schemes,
particularly subsidy-based programmes for poor.

The Co-operative banks in rural areas mainly finance agricultural based

activities like:

Farming

Cattle

Milk

Hatchery

Personal finance

The Co-operative banks in urban areas finance in activities like:

Self-employment

Industries

Small scale units

Home finance

Consumer finance

Personal finance

Some of the forward looking Co-operative banks have developed sufficient

core competencies to such an extent that they are able to challenge state and
private sector banks.

The exponential growth of Co-operative banks is attributed mainly to their

XVII
much better contacts with the local people, personal interaction with
customers, and their ability to catch the nerve of the local clientele. The total
deposits and lendings of Co-operative banks are much more than the Old
Private Sector Banks and the New Private Sector Banks

XVIII
IMPORTANCE OF CO-OPERATIVE BANKING

Co-operative bank forms an integral part of banking system in India. This

bank operates mainly for the benefit of rural area, particularly the
agricultural sector. Co-operative bank mobilize deposits and supply
agricultural and rural credit with the wider outreach. They are the main
source for the institutional credit to farmers. They are chiefly responsible for
breaking the monopoly of moneylenders in providing credit to agriculturists.
Co-operative bank has also been an important instrument for various
development schemes, particularly subsidy-based programmes for the poor.
Co-operative banks operate for non-agricultural sector also but their role is
small.

Though much smaller as compared to scheduled commercial banks, co-

operative banks constitute an important segment of the Indian banking
system. They have extensive branch network and reach out to people in
remote areas. They have traditionally played an important role in creating
banking habits among the lower and middle income groups and in
strengthening the rural credit delivery system.

HISTORY OF CO-OPERATIVE BANKING

The origins of the cooperative banking movement in India can be traced to

the close of nineteenth century when, inspired by the success of the
experiments related to the cooperative movement in Britain and the
cooperative credit movement in Germany, such societies were set up in
India.

Now, Co-operative movement is quite well established in India. The first

legislation on co-operation was passed in 1904. In 1914 the Maclagen
committee envisaged a three tier structure for co-operative banking viz.
Primary Agricultural Credit Societies (PACs) at the grass root level, Central
Co-operative Banks at the district level and State Co-operative Banks at
state level or Apex Level.

In the beginning of 20th century, availability of credit in India, more

particularly in rural areas, was almost absent. Agricultural and related
activities were starved of organised, institutional credit. The rural folk had to
depend entirely on the money lenders, who lent often at usurious rates of
interest

XIX
The co-operative banks arrived in India in the beginning of 20th Century as
an official effort to create a new type of institution based on the principles of
co-operative organisation and management, suitable for problems peculiar to
Indian conditions. These banks were conceived as substitutes for money
lenders, to provide timely and adequate short-term and long-term
institutional credit at reasonable rates of interest.

The Anyonya Co-operative Bank in India is considered to have been the first
co-operative bank in Asia which was formed nearly 100 years back in
Baroda. It was established in 1889 with the name Anyonya
SahayakariMandali Co-operative Bank Limited, with a primary objective
ofproviding an alternative to exploitation by moneylenders for Baroda's
residents.

In the formative stage Co-operative Banks were Urban Co-operative

Societies run on community basis and their lending activities were restricted
to meeting the credit requirements of their members. The concept of Urban
Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939
which defined on Urban Co-operative Bank . Provisions of Section 5 (CCV)
of Banking Regulation Act, 1949 (as applicable to Co-operative Societies)
defined an Urban Co-operative Bank as a Primary Co-operative Bank other
than a Primary Co-operative Society were made applicable in 1966.

With gradual growth and also given philip with the economic boom, urban
banking sector received tremendous boost and started diversifying its credit
portfolio. Besides giving traditional lending activity meeting the credit
requirements of their customers they started catering to various sorts
ofcustomers viz.self-employed, small businessmen / industries, house
finance, consumer finance, personal finance etc.

FEATURES OF CO-OPERATIVE BANKING

1.Co-operative Banks are organized and managed on the principal of co-

operation, self-help, and mutual help. They function with the rule of "one
member, one vote". function on "no profit, no loss" basis. Co-operative
banks, as a principle, do not pursue the goal of profit maximization.

2. Co-operative bank performs all the main banking functions of deposit

mobilisation, supply of credit and provision of remittance facilities.

3. Co-operative Banks provide limited banking products and are functionally

specialists in agriculture related products. However, co-operative banks now
provide housing loans also.

XX
4. Co-operative banks are perhaps the first government sponsored,
government-supported, and government-subsidised financial agency in
India. They get financial and other help from the Reserve Bank of India,
NABARD, central government and state governments. They constitute the
"most favoured" banking sector with risk of nationalisation. For commercial
banks, the Reserve Bank of India is lender of last resort, but co-operative
banks it is the lender of first resort which provides financialresources in the
form of contribution to the initial capital (through state government),
working capital, refinance.

Co-operative Banks belong to the money market as well as to the capital

market. Primary agricultural credit societies provide short term and medium
term loans.

Co-operative banks are financial intermediaries only partially. The sources

of their funds (resources) are:
Central and state government,

The Reserve Bank of India and NABARD,

Other co-operative institutions,

Ownership funds and,

Deposits or debenture issues.

Some co-operative bank are scheduled banks, while others are non-
scheduled banks. Co-operative Banks are subject to CRR and liquidity
requirements as other scheduled and non-scheduled banks are. However,
their requirements are less than commercial banks.

As said earlier, co-operative banks accept current, saving, and fixed or time
deposits from individuals and institutions including banks.

In the recent past, the RBI has introduced changes in interest rates of co-
operative banks also, along with changes in interest rates of commercial
banks. The interest rates structure of co-operative banks is quite complex.
The rates charged by them depend upon the type of bank, the type of
loansand vary from state to state.

10. Since 1966 the lending and deposit rate of commercial banks have been
directly regulated by the Reserve Bank of India. Although the Reserve Bank

XXI
of India had power to regulate the rate co-operative bank but this have
beenexercised only after 1979 in respect of non-agricultural advances they
were free to charge any rates at their discretion. Although the main aim of
the co-operative bank is to provide cheaper credit to their members and not
tomaximize profits, they may access the money market to improve their
income so as to remain viable.

11. Co-operative banks (COBs), in short, have played a pivotal role in the
development of short-term and long-term rural credit structure in India over
the years. The co-operative credit effort is said to be the first ever attempt at
micro-credit dispensation in India.

Co-operative Banks share some common features for their customer benefit:

Customer's owned entities :

In a co-operative bank, the needs of the customers meet the needs of the
owners, as co-operative bank members are both. As a consequence, the first
aim of a co-operative bank is not to maximise profit but to provide the best
possible products and services to itsmembers. Some co-operative banks only
operate with their members but most of them also admit non-member clients
to benefit from their banking and financial services.

Democratic member control :

Co-operative banks are owned and controlled by their members, who

democratically elect the board of directors. Members usually have equal
voting rights, according to the co-operative principle of "one person, one
vote".

Profil allocation :

In a co-operative bank, a significant part of the yearly profit, benefits or

surplus is usually allocated to constitute reserves. A part of this profit can
also be distributed to the co-operative members, with legal or statutory
limitations in most cases. Profit is usually allocated to members either
through a patronage dividend, which is related to the use of the co-
operative's products and services by each member, or through an interest or
a dividend, which is related to the number of shares subscribed by each
member.

XXII
XXIII
CLASSIFICATION OF CO-PERATIVE BANKS:

The Co-operative banking structure in India comprises of:

Urban Co-operative Banks

Rural Co-operatives

Some co-operative banks are scheduled banks, while others are non-scheduled
banks. For instance, State Co-operative banks and some Urban Co-operative banks
are scheduled banks but other co-operative banks are non-scheduled banks.

Scheduled banks are those banks which have been included in the second schedule
of the Reserve bank of India act of 1934.
The banks included in this schedule list should fulfill two conditions.

1. The paid capital and collected funds of bank should not be less than Rs. 5 lac.

2.Any activity of the bank will not adversely affect the interests of depositors.

Every Scheduled bank enjoys the following facilities.

Such bank becomes eligible for debts/loans on bank rate from the RBI

Such bank automatically acquire the membership of clearing house.

1. Urban Co-operative Banks:

Urban Co-operative Banks is also referred as Primary Co-operative banks by the

Reserve Bank of India. Among the non-agricultural credit societies urban co-
operative banks occupy an important place. This bank is started in India with the
object of catering to the banking and credit requirements of the urban middle
classes.

The RBI defines Urban Co-operative banks as “small sized co-operatively

organized banking units which operate in metropolitan, urban and semi-urban
centers to cater mainly to the needs of small borrowers, viz. owners of small scale
industrial units, retail traders, professional and salaries classes.”

Urban Co-operative banks mobilize savings from the middle and lower income
groups and purvey credit to small borrowers, including weaker sections of the
society. These banks organize on a limited liability basis, generally extend their
area of operation over a town. The main functions of these banks are to promote

XXIV
thrift by attracting deposits from members and non-members and to advance loans
to the members. It is registered under Co-operatives Societies Act of the respective
state Governments. Prior to 1966, Urban Co-operative banks were exclusively
under the purview of State Government. From March 1, 1966 certain provisions of
Banking Regulation Act have been made applicable to these banks. Consequently,
the
RBI became the regulatory an supervisory authority of Urban Co-operative Banks
for their related operations. Managerial aspects of such banks continue to remain
with State Governments under the respective Co-operative Societies Act. These
banks with multi-presence are regulated by the Central Governments and registered
under Multi-State Co-operative Societies Act. The RBI extends refinance to Urban
Co-operative Banks at bank ate against their advances to tiny and cottage industrial
units. These banks grants sizeable loans and advances under priority sector for
lending to small business enterprises, retail trade, road and water transport
operators and professional and self-employed persons. Urban Co-operative banks
are mostly located in towns and cities and cater to the credit requirement of the
urban clientele.

The objectives and functions of the Urban Co-operative banks:

Primarily, to raise funds for lending money to its members.

To attract deposits from members as well as non-members.

To encourage thrift, self-help ad mutual aid among members.

To draw, make, accept, discount, buy, sell, collect and deal in bills of exchange,
drafts, certificates and other securities.

To provide safe-deposit vaults.

Area of Operation :

The area of operation of these banks are usually restricted by its byelaws to a
municipal area or a town. In some occasions it exceeds this limit. The study group
on Credit Co-operatives in Non-Agricultural Sectors has recommended that
normally, it would be advisable for an urban co-operative bank to restrict its area of
operation to the municipality or the taluka town where it operates.

2. Rural Co-operatives:

Rural Cooperative Banking plays an important role in meeting the growing credit
needs of rural population of India. It provides institutional credit to the agricultural

XXV
and rural sector. The inadequacy of rural credit engaged the attention of RBI and
Government throughout the 1950s and 1960s. One important feature of providing
agriculture credit in India has been the existence of a widespread network of rural
financial institutions. The rural credit structure consists of many types of financial
institutions as large scale branch expansion was undertaken to create a strong
institution based in rural area. It has served as an important instrument of credit
delivery in rural and agricultural areas. The separate structure of rural Co-operative
sector for long-term and short-term loans has enabled these institutions to develop a
specialized institution for rural credit delivery. Thevolume of credit flowing
through these institution has increased. The Rural Co-operative structure has
traditionally been bifurcated into two parallel wings, i.e.

I. Short-term Rural Co-operatives,

II. Long-term Rural Co-operatives.

There is a larger network of co-operative banks in the rural sector, consisting of 29

State Co-operative Banks and 367 District Central Co-operative Banks, with 13,025
branches. In addition, there are 92,000 Primary Agricultural Co-operative Credit
Societies , 19 State Land Development Banks and 745 Primary Land Development
Banks, along with 1,847 branches, which are not strictly banks as they are not
covered under the Banking Regulation Act, 1949. The RBI Governor's proposals
should, therefore, encompass the entire Co-operative banking system.

I. Short-term Rural Co-operatives:

The short-term rural co-operatives provide crop and other working capital loans to
farmers and rural artisans primarily for short-term purpose. These institutions have
federal three-tier structure.

At the Apex of the system is a State Co-operative bank in each state.

At the middle (or district) level, there are Central Co-operative Banks also known
as District Co-operative banks.

At the lowest (or village) level, are the Primary Agricultural Credit Societies.

State Co-operative Banks:

State Co-operative Banks are the apex of the three-tier Co-operative structure
dispensing mainly short/medium term credit. It is the principal society in a State
which is registered or deemed to be registered under the Government Societies Act,
1912, or any other law for the time being in force in India relating to co-operative
XXVI
societies and the primary object of which is the financing of the other societies in
the State which are registered or deemed to be registered. The State Co-operative
Banks receive current and fixed deposits from its constituent banks as well as
savings, current and fixed deposits from the general public and from local boards,
other local authorities, etc. Further, they receive loans from the RBI and NABARD.
NABARD is the supervisory authority for State Co-operative Banks. The state
government contributes the certain portion of their working capital. The principal
function of State Co-operative Banks is to assist the Central Co-operative Banks
and to balance excesses and deficiencies in the resources of Central Co-operative
Banks. It also act as the “balancing centre” for Central Co-operative Banks in the
sense that surplus fund of some of these banks are made available to other needy
banks. It also serves the link between RBI and the Central Co-operative Banks and
Primary Agriculture Credit Societies. But the connection between the State Co-
operative Banks and Primary Co-operative Societies is not direct. TheCentral Co-
operative Banks are acting as intermediaries between the State Co-operative Banks
and Primary societies.

Central Co-operative Banks:

Central Co-operative Banks form the middle tier of Co-operative credit institutions.
These are the independent units in as much as the State Co-operative Banks have
control to control or supervise their affairs. They are of two kinds i.e. ‘pure’ and
‘mixed’. Those banks are the membership of which is confined to co-operative
organizations only are included in ‘pure’ type, while those banks the membership
of which is open to co-operative organizations as well as to the individuals are
included in ‘mixed’ type. The pure type of Central Banks can be seen in Kerala,
Bombay, Orissa, etc., while the mixed type can be seen in Andhra Pradesh, Assam,
Tamil Nadu, etc. The pure type of banks is based on strict co-operative principles.
However, the mixed type has an advantage over the pure type in so far as they can
draw their funds from the non-agricultural sector too.

The Central Co-operative Banks draw their funds from share capital, deposits, loans
from the State C-operative Banks and where State Banks do not exist from the RBI,
NABARD and commercial banks. NABARD is the supervisory authority for
Central Co-operative Banks. Deposits constitute the major component of sources of
funds, followed by borrowings. The main function of Central Co-operative Banks is
to financethe primary credit societies. In addition they carry on Commercial
banking activities like acceptance of deposits, granting of loans and advances on
the security of first class guilt-edged securities, fixed deposit receipts, gold, bullion,
goods and documents of title to goods, collection of bills, cheques, etc., safe
custody of valuables and agency services. They are expected to attract deposits
from the general public. They also act as ‘balancing centres’, making available
access funds of one primary to another which is in need of them.
XXVI
I
The central co-operative banks are located at the district headquarters or some
prominent town of the district. These banks have a few private individuals also who
provide both finance and management. The central co-operative banks have three
sources of funds,

Their own share capital and reserves

Deposits from the public and

Loans from the state co-operative banks

Primary Agriculture Credit Societies:

Primary Agricultural Credit Societies is the foundation

of the co-operative credit system on which the superstructure of the short-term co-
operative credit system rests. It deals directly with individual farmers, provide short
and medium term credit, supply agricultural inputs, distribute consume articles and
also arrange for the marketing of products of its members through a c-operative
marketing societies. These societies form the basic unit of co-operative credit
system in India. These voluntarysocieties based on principle of one man one vote
has posed challenge to exploitative practices of the village moneylenders. The
farmers and other small-time borrowers come in direct contact with these societies.
The success of the co-operative credit movement depend largely on the strength of
these village level societies.

The major objective of Primary agricultural Credit Societies is to serve the need of
weaker sections of these society. For this purpose, the people with limited means,
particularly with schedules castes and scheduled tribes, are encouraged to become
members of these societies. So, they must function effectively as well-managed and
multi-purpose institutions mobilizing the savings of the rural people and providing
the package of services including credit, supply of agricultural inputs and
implements, consumer goods, marketing services and technical guidance with focus
on weaker sections. Government has promoted multi-purpose societies in tribal
areas for the benefit of people living there.

Challenges faced by this societies, apart from improving resources mobilization, are
the following:

Improving volume of business

XXVI
II
Reducing cost of management.

Correcting imbalances in loan outstanding.

Improving skill of the staff and imparting professionalization

Strenghtening Management Information System (MIS).

II. Long-term Rural Co-operatives:

The long-term rural co-operative provide typically medium and long-term loans for
making investments in agriculture, rural industries and, in the recent period,
housing. Generally, these co-operatives have two tiers, i.e. State Co-operative
Agriculture and Development Banks (SCARBDs) at the state level and Primary Co-
operative Agriculture and Rural Development Banks (PCARDBs) at the taluka or
tehsil level. However, some States have a unitary structure with the state level
banks operating through their own branches.

State Co-operative Agriculture and Development Banks (SCARBDs):

State Co-operative Agriculture and Development Banks constitute the upper-tier of

long term co-operative credit structure. Though long term credit co-operatives have
been allowed to access public deposits under certain conditions, such deposits
constitute a relatively small proportion of their total liabilities. They are mostly
dependent on borrowings for on-lending.

The main objective of the Co-operative State Agriculture and Rural Development
bank is to finance primary agriculture and rural development banks. The bank
undertakes the following functions to achieve the above objectives:-

Floatation of Debentures,

Receiving Deposits;

Grant of loans to primary cooperative agriculture and ruraldevelopment banks

for purposes approved by the National Bank forAgricultural and Rural
Development and Registrar of Cooperative Societies;

To function as the agent of any cooperative bank subject to such conditions as the
Registrar may specify;

To develop, assist and coordinate the work of affiliated primary cooperative

agriculture and rural development banks.
XXIX
The bank issues long term and medium term loans towards agricultural and allied
activities like construction of godowns, cattle shed, farm house, purchase of lands
etc., and for minor irrigation purposes like construction of new wells, deepening of
existing wells etc., In addition, long term loans are also sanctioned for animal
husbandry, fisheries, plantation,farm mechanization, non-farm sector and other
non-minor irrigation schemes.

Primary Co-operative Agriculture and Rural Development Banks (PCARDBs):

Primary Co-operative Agriculture and Rural Development Banks are the lowest
layer of long term credit co-operatives. It is primarily dependent on the borrowings
for their lending business.

They provide credit for developmental purposes like minor irrigation, cultivation of
plantation crops and for diversified purposes like poultry, dairying and sericulture
on schematic basis. They get requisite financial assistance from the Cooperative
State Agriculture and Rural Development Bank.

In order to widen their scope of lending to compete with other financial agencies,
the primary cooperative agriculture and rural development banks have been
permitted to finance artisans, craftmen and small scale entrepreneurs. They have
also been permitted to issue loans tosmall road transport operators in rural areas for
purchase of goods carriers and passenger vehicles.

As a result, during 2007-08, the Primary Cooperative Agriculture and Rural

Development Banks have again started lending for the Non-Farm Sector including
Jewel Loans.

REGULATORY BODIES OF CO-OPERATIVE BANKS

CO-OPERATIVE BANKS AND NABARD

As an apex bank involved in refinancing credit needs of major financial institutions

in the country engaged in offering financial assistance to agriculture and rural
development operations and programmes, NABARD has been sharing with the
Reserve Bank of India certain supervisory functions in respect of co-operative
banks and Regional Rural Banks (RRBs).

As part of these functions, itUndertakes inspection of Regional Rural Banks

(RRBs) and co-operative banks (other than urban/primary co-operative banks)
XXX
under the provisions of Banking Regulation Act, 1949.

Undertakes inspection of State Co-operative Agriculture and Rural Development

Banks (SCARDBs) and apex non-credit co-operative societies on a voluntary basis

Undertakes portfolio inspections, systems study, besides off-site surveillance of co-

operative banks.

Provides recommendations to Reserve Bank of India on opening of new branches

by State Co-operative Banks.

Administering the Credit Monitoring Arrangements in Co-operative banks.

Core Functions of NABARD for Co-operative Banks:

NABARD has been entrusted with the statutory responsibility of conducting

inspections of State Co-operative Banks (SCBs), District Central Co-operative
Banks (DCCBs) and Regional Rural Banks (RRBs) under the provision of the
Banking Regulation Act, 1949. In addition, NABARD has also been conducting
periodic inspections of state level co-operative institutions such as State Co-
operative Agriculture and Rural Development Banks (SCARDBs), on a voluntary
basis.

REFORMS IN BANKING REGULATION ACT, 1949

Amendments to the BR Act would cover the following:

All cooperative banks would be on par with the commercial banks as far as
regulatory norms are concerned.

RBI will prescribe fit and proper criteria for election to Boards of cooperative
banks. Such criteria would however not be at variance with the nature of
membership of primary cooperatives which constitute the membership of the
District/ Central Co-operative Banks and State Co-operative Banks.

However, as financial institutions, these Boards would need minimum support at

the Board level. Thus, the RBI will prescribe certain criteria for professionals to be
on the Boards of cooperative banks. In case members with such professional
qualifications or experience do not get elected in the normal electoral process, then
the Board will be required to appoint such professionals in the Board and they
would have full voting rights.
The CEOs of the cooperative banks would be appointed by the respective banks
themselves and not by the state. However, as these are banking institutions, RBI
XXXI
will prescribe the minimum qualifications of the CEO to be appointed and the
names proposed by the cooperative banks for the position of CEO would have to be
approved by RBI.

Cooperatives other than cooperative banks as approved by the RBI would not
accept non-voting member deposits. Such cooperatives would also notuse words
like “bank”, “banking”, “banker” or any other derivative of the word “bank” in
their registered name.

If a State Government and the CCS units in that state are enthusiastic in
implementing the package, fulfillment of all the above conditionalities and
consequently release of the entire financial assistance could be completed even
within a year.

REFORMS IN CO-OPERATIVE SOCIETIES ACT:

As making legal amendments is time consuming process, the state governments

may issue Executive Orders under the existing powers to bring in the desired
reforms which will relate to:

Ensuring full voting membership rights on all users of financial services including
depositors in cooperatives other than cooperative banks.

Removing state intervention in all financial and internal administrative matters in

cooperatives.

Providing a cap of 25% on government equity in cooperatives and limiting

participation in the Boards of cooperative banks to only one nominee. Any state
government or a cooperative wishing to reduce the state equity further would be
free to do so and the cooperative will not be prevented from doing so.

Allowing transition of cooperatives registered under the CSA to migrate under the
Parallel Act (wherever enacted)

Withdrawing restrictive orders on financial matters

Permitting cooperatives in all the three tiers freedom to take loans from any
financial institution and not necessarily from only the upper tier and similarly
placing their deposits with any regulated financial institution of their choice.

Permitting cooperatives under the parallel Acts (wherever enacted) to be members

of upper tiers under the existing cooperative societies Acts and vice-versa.

XXXI
I
Limiting powers of state governments to supersede Boards

Ensuring timely elections before the expiry of the term of the existing Boards.

Facilitating regulatory powers for RBI in case of cooperative banks as mentioned

earlier.

GOVERNMENT INITIATIVES TO STRENGTHEN THE DEVELOPMENT OF

CO-OPERATIVE BANKS

Even before the submission of the Khusro Committee Report, the government and
the RBI had initiated certain measures to strengthen the development of co-
operative banks. Some of these policy initiatives were as follows:

The NABARD had formulated a scheme for the reorganisation of Primary

Agricultural Co-operative Societies and the implementation of this scheme had
started in those states which have accepted it.

The programme for development of selected Primary Agricultural Co-operative

Societies into truly multi-purpose co-operative societies has beenimplemented in
many states and Unionterritories.

In addition to such programmes, certain state governments like Andhra Pradesh,

Madhya Pradesh West Bengal had also initiated development programmes to
strengthen the working of the co-operative credit institutions at the base level.

On the basis of their financial position as on 30 June 1987, 175 Central Co-
operative Banks and 7 State Co-operative Banks in the country were identified as
'weak' banks and brought under the programme of rehabilitation which, however,
did not really work quite well.

With a view to enabling weak banks which were either ineligible or were on the
verge of becoming ineligible for refinance SUPP011, a 12-Point Action Programme
had been formulated and circulated by NABARD to all the state governments.

INITIATIVES TOWARDS DEVELOPMENT OF CO-OPERATIVE BANKS:

Reorganisation of Primary Agricultural credit Societies. (a scheme by NABARD)

XXXI
II
National Co-operative Bank of India (NCBI) was registered in 1993.(Multi-state
co-operative society)-it has no regulatory functions.

Co-operative development bank (set up by NABARD).

4. Allowing all PCB’s to undertake equipment leasing and hire- purchase financing.

5. Licensing of new banks.

SUGGESTIONS FOR EFFECTIVE OPERATION IN CO-OPERATIVE

BANKING:

The following suggestions can be made for improving the effectiveness in

operation of Co-operative banking:

1. It is apparent that the mountain overdue has become a major problem of most of
the co-operative banks and their performance in managing Non Performing Assets
is not satisfactory. Firm measure should be followed to make credit appraisal,
documentation, disbursement, monitoring, etc. The following strategies may help
the banks in avoiding or reducing NPA’s.

Pre-sanction strategies: Before sanctioning a loan, a bank has to go for detailed

inquiry about borrower and his loan proposal.

Post-sanction strategies: After the loan is disbursed, proper supervision of loan

utilization is to be ensured. Bank has to maintain proper relationship with the
borrower and ensure that first installment id deposited timely.

Persuasion or Follow-up: As a step, bank has to pursue with borrower and if

required, rescheduling of installments be made.

The bank should adopt he system of computerized monitoring of loans.

These banks can also go for such schemes for opening of saving bank and other
accounts treated as low cost deposit base as well as clientele base of the banks will
take remarkable shape. In this respect, banks can introduce effectively various
innovative deposit schemes like women’s savings, children’s savings, savings
scheme for youth, daily collection etc.

With limited area of operation for so many decades together, Urban Co-operative
banks cold not expand their business in other area in general. At this juncture, it
XXXI
V
should have governmental support and the government should liberalize this area of
operation, so that they could incrase their business at their will.

All Co-operative banks should come in one umbrella i.e. CORE BANKING.

Co-operative banks, with their newly formed emphasis on prudential norms, need a
high degree of professionalism in management.

Some Co-operative banks particularly which are small banks not having sufficient
branch network are suggested to enter into tie-up arrangements with commercial
banks like ICICI Bank, HDFC Bank, etc and in this way these banks could expand
their business.

While Co-operative banks were closing down, the Reserve Bank of India (RBI)
tried to bring them under tighter control. Till a few years ago, Urban Commercial
Banks were not strictly monitored with two regulators in the RBI and the Registrar
of Co-operative Societies. But now the RBI has taken various measures to bring
them under control.

It has signed MoUs with 11 states to set up task forces on Urban Co-operative
Banks to work with the registrars on remedial action and take the tough decisions
on the structure. It has also put a limit of “15 per cent of the own funds of the bank”
for loans to one borrower group, making it difficult for the banks to give a huge
loan to one entity and compromise its stability, as was happening earlier. According
to the RBI, Co-operative banks are intended primarily for members and all financial
information pertaining to the bank is required to be made available to them.

In addition, according to the existing regulations, a bank is required to publish its

balance sheet in a newspaper in circulation in the main area of operations of the
bank. They are also required to place their annual accounts before the annual
general meeting. Certain minimum disclosures have been prescribed by RBI. All
this information can be used by public in making investment decision.

However, the bank customer has to make his or her own choice, depending on
which the bank offers the most suitable product. While the RBI is doing its bit, it
says you should also run the following checks to ensure that you have a nice
experienceCheck for deposit cover. Ask the bank to what extent your depositwill be
covered by DICGC insurance if you are not investing in the name of an individual
but as a business organization.( In the event of a bank failure, DICGC protects bank
deposits that are payable in India.)
Scheduled banks:The 53 scheduled cooperatives banks are fairlysafe.

Size: For non-scheduled banks, there is safety in size. Decide in favorof bigger
XXX
V
urban co-operative banks.

Non-performing assets:These should be within single digits. Thehigher the NPA,

the bigger the risk.

Capital adequacy:This ratio should not be less than 9 per cent.

Credit-deposit ratio:Ideally, the ratio should be 66 per cent.Anything more shows

that the bank is not in a position to lend and, hence, get new business to pay back
the depositors.

Profits:Check whether the bank has been making profits for the lastthree years.

RBI directive: Check out the current financial status of a bankoperating under
RBI’s directive before dealing with it.

Some facts about Cooperative banks in India:

Some cooperative banks in India are more forward than many of the state and
private sector banks.

The total deposits & lending of Cooperative Banks in India is much more than Old
Private Sector Banks & also the New Private Sector Banks.

This exponential growth of Co operative Banks in India is attributed mainly to their

much better local reach, personal interaction with customers, and their ability to
catch the nerve of the local clientele.

OVERVIEW OF VARIOUS DEPARTMENTS INRCCBL

Loans & Advances:

Loans and Advances section is present in each branch of RCBBL. Loans here are
provided against Fixed Deposits, Gold Ornaments, Land& Building, Vehicle, self-
surety, Stock in trade, Overdraft. Loans are only provided to the shareholders of the
bank. There are many types of loan provided by the bank but the priority sector is
home loans, car loans and education loans, Lien system is also available for
advances of Money Documents used for loan process are:
KYC- Know yourcustomer.

A detailed loan application containing information of Customer related to the share

and existingloan.
XXX
VI
Form-60 if Pan Card is notavailable.

Adhaar card or any other AddressProof.

Estimated amount by the contractor in case of housing loans or estimate of the

actual amountneeded.
Account opening form if the customer only want loan related relationship with the
bank.
PromissoryNote.

DebitNote.

Vouchers.

Banking Section:

Banking section maintain the day to day records of the customer. The customer can
either be a Savings Account Holder, Current Account Holder; banking section have
to be ready with answers related to their queries. Banking section can be divided
into deposits section, savings account section, passbook section, fixed Deposit
section. Thebank mostly handles the Small business class peoples who are not into
agricultural business. The bank provides overdraft facilities. There are around 25
Staff in Raiya Road Branch including the manager and senior officers. The Raiya
Road Branch is having its own Gold Loan section which give easy loan to their
savings account customer.
Savings Account Opening & Related information:

Any Individual Can Open This Account:

Maximum 3 Names Are Allowed In Joint Account.

Minimum Balance is Rs1000.

Institute / Cooperative society/Trust Can Open This Account.

Account can be opened by Minorstoo.

Maximum 8 Withdrawals are allowed during theMonth.

Required for opening of Account:

Duly filled Account Openingform.

XXX
VII
–Photocopy of PAN Card / Duly filled Form 60.

Two Photograph of EachSignatories.

Any of following document:

Ration Card /Passport.

Electricity Bill / Telephone Bill / House Tax BillEtc.

Valid documents issued and permitted by govt.

Current Account Opening & Related information:

This Account Can be opened for Any Business Establishment Like:

ProprietorshipBusiness.

PartnershipBusiness.

Pvt. LimitedCompany.

Any Other Institute / Trust / CooperativeSociety.

Any Individual - Single orJointly.

Minimum Balance is Rs 2000. Nomination facility is Available. Required for

opening an account:
Duly filled Account Openingform.

Photocopy of PAN Card / Duly filled Form60.

2 Photograph of EachSignature.

Any of following document:

Ration Card /Passport.

Electricity Bill / Telephone Bill / House Tax BillEtc.

Two BusinessProofs.

Shares Department:
XXX
VIII
A centralized share department is present at RCCBL Chandulal Buch Marg. The
main job here is to add new shareholders or to remove the shareholder who gave
resigned. The bank uses latest IT system for such process. The share section also
sells shares, they also pay dividend monthly i.e 9%. Share certificate is the unique
instrument used in thisdepartment.
Human Resource Department:

Human resources specialists are responsible for recruiting, selecting, interviewing

and placing workers. They may also handle employee relations, payroll and
benefits and training. Human resources managers plan, direct and coordinate the
administrative functions of an organization. Human Resources (HR) is concerned
with the issues ofmanaging people in the organisation. The Human Resources
department is responsible for many people related issues in an organisation..
IT department:

Information technology (IT) is the use of computers to store, retrieve, transmit, and
manipulate data, or information, often in the context of a business or other
enterprise. The bank is relied on its IT team for Real Time Data. The Bank uses an
MIS system called FINCORE the entire banking operation is depended on the
software and each employee is well versed and trained for their respective module.
The system is frequently updated and continuous improvement made continuously.
Marketing Department:

Marketing is based on thinking about the business in terms of customer needs and
their satisfaction. It is not concerned with the values that the exchange is all about.
In other words, marketing has less to do with getting customers to pay for your
product as it does developing a demand for that product and fulfilling the
customer'sneeds.
The bank have a full-fledged marketing section recently started because the bank
have been facing tough competition by other cooperative banks. The marketing
department have gold loan, housing loan, car loans and shares in their portfolios.
The bank is now more dependent on marketing department because the competitors
are offering better financial products and with more flexibility.
Finance Department:

The objective of financial department here is to have smooth flow cash in the
system and assets management. The finance department of the bank tries to
maintain profitability and liquidity of the bank. Finance department also sees the
accounting activity and internal audit conducted by the bank. The main function of
bank here is fund management and make sure that the bank remain solvent. Finance
department also take care about the various financial documents used in the bank
and stored in the bank. Finance department here prepares budget and allocate
XXXI
X
money to different branches of RCCBL. The department also make sure that
appropriate action are taken whenever there is a change in banking regulation
byRBI.

SWOT Analysis

Strength:

The Reputation and the Brand Image the bank carry, they have tag line “Customer
alwaysking”.
Bank have highly ExperiencedStaff.

They have good teamefforts.

Weakness:

They are unable to explain customer regarding variousthings.

They are giving late services tocustomer.

They are still not focussing on new financial services offered by other banks like
insurance policies and mutualfunds.
Opportunity:

The bank have image so it show its presence in the own state.
XL
The bank have good opportunity with other banks.

Threats:

Investment in other financial institution.

The banks nearby are offering similar services at less interest rate.

CONCLUSION

Conclusion:

Now, It is very much clear that co-operative banks have very much importance in
national development. Without the help of co-operative banks, millions of people in
India would be lacking the much needed financial support.

Co-operative banks take active part in local communities and local development
with a stronger commitment and social responsibilities. These banks are best
vehicles for taking banking to doorsteps of common men, unbanked people in
urban and rural areas. Their presence in the social, economic and democratic
structure of the country is essential to bring about harmonious development and that
perhaps is the best justification for nurturing them and strengthening their base.
These banks are sure to win in the race because they are from the people, by the
people and of the people.

XLI
Types of Services Provided:

 ATM Facility
 Locker Facility
 Outward Bill Collection Facility
 Bills Discounting Facility
 Fixed Deposit Services
 Share Facility
 Free NEFT and RTGS Facility

Profile of Rajkot Commercial Cooperative Bank LTD

Name JUNAGADH COMMERCIAL

COOPERATIVE BANK LTD
IFSC Code ICIC00RCCBL
Established at 1966
Type Urban Cooperative Bank
Status State Urban Cooperative Bank
Head Quarters Near Bus stand Junagadh
Chairman Shree Mansukhbhai .N. Patel
General Manager & CEO Dr. Purushotam .B. Pipariya
Number of Branches 5(In Junagadh)
Priority Sector Loans
Number of Employees 500
Advances Against Fixed Deposit, gold ornaments,
stock in trade, vehicle, Land and Building.
Deposits Savings, current, Cash Credit, Fixed
Deposit Reinvestment.

Services Provided ATM, Free RTGS/NEFT, Outward Bill

Collection, Bills Discounting.

XLII
 Vision & Mission of JCOM:

Vision:

Junagadh Commercial Cooperative Bank’s aim is to provide a best service to the common
people.

Mission:

To provide Banking Facility to the people nearby at lesser rate and achieve brand
image.

XLIII
 OUR STRENGTH

Strength Factors Figures Dated: 31 March 2018

Deposit More than 16 Crore
Advances More than 9 crore
Cash Deposit(CD) Ratio More than 55%
Gross NPA More than 1.6 Crore
Net NPA Less than 6 Crore
Cash Adequacy Ratio More than 50%
Networth More than 6 crore
Gross profit More than 6.5 Crore
Provisions No provisions
Profit Before Tax More than 6.5 Crore
Income Tax More than 2.5 Crore
Profit After Tax More than 4 Crore
Staff Member More Than 40 Member

XLIV
ORGANIZATIONAL STRUCTURE

General Manager

AssistantGeneral
Manager

Deputy Chief
Manager

Chief Manager

Manager

Senior Officer

Junior Officer

Senior Executive/
Junior Executive/
SS

XLV
 OVERVIEW OF VARIOUS DEPARTMENTS IN RCCBL

Loans & Advances:

Loans and Advances section is present in each branch of RCBBL. Loans here are
provided against Fixed Deposits, Gold Ornaments, Land& Building, Vehicle, self-
surety, Stock in trade, Overdraft. Loans are only provided to the shareholders of the
bank. There are many types of loan provided by the bank but the priority sector is home
loans, car loans and education loans, Lien system is also available for advances of
Money Documents used for loan process are:

1. KYC- Know your customer.

2. A detailed loan application containing information of Customer related to the share

and existing loan.

3. Form-60 if Pan Card is not available.

4. Adhaar card or any other Address Proof.

5. Estimated amount by the contractor in case of housing loans or estimate of the actual
amount needed.

6. Account opening form if the customer only want loan related relationship with the
bank.

7. Promissory Note.

8. Debit Note.

9. Vouchers.

Banking Section:

Banking section maintain the day to day records of the customer. The customer can
either be a Savings Account Holder, Current Account Holder; banking section have to
be ready with answers related to their queries. Banking section can be divided into
deposits section, savings account section, passbook section, fixed Deposit section. The

XLVI
bank mostly handles the Small business class peoples who are not into agricultural
business. The bank provides overdraft facilities. There are around 25 Staff in Raiya
Road Branch including the manager and senior officers. The Raiya Road Branch is
having its own Gold Loan section which give easy loan to their savings account
customer.

Savings Account Opening & Related information:

Any Individual Can Open This Account:

– Maximum 3 Names Are Allowed In Joint Account.

– Minimum Balance is Rs 1000.

– Institute / Cooperative society/Trust Can Open This Account.

– Account can be opened by Minors too.

– Maximum 8 Withdrawals are allowed during the Month.

Required for opening of Account:

– Duly filled Account Opening form.

–Photocopy of PAN Card / Duly filled Form 60.

– Two Photograph of Each Signatories.

Any of following document:

– Ration Card / Passport.

– Electricity Bill / Telephone Bill / House Tax Bill Etc.

Valid documents issued and permitted by govt.

Current Account Opening & Related information:

This Account Can be opened for Any Business Establishment Like:

– Proprietorship Business.

– Partnership Business.

XLVI
I
– Pvt. Limited Company.

– Any Other Institute / Trust / Cooperative Society.

– Any Individual - Single or Jointly.

Minimum Balance is Rs 2000.

Nomination facility is Available.

Required for opening an account:

– Duly filled Account Opening form.

– Photocopy of PAN Card / Duly filled Form 60.

– 2 Photograph of Each Signature.

Any of following document:

– Ration Card / Passport.

– Electricity Bill / Telephone Bill / House Tax Bill Etc.

– Two Business Proofs.

Shares Department:

A centralized share department is present at RCCBL Chandulal Buch Marg. The main
job here is to add new shareholders or to remove the shareholder who gave resigned.
The bank uses latest IT system for such process. The share section also sells shares,
they also pay dividend monthly i.e 9%. Share certificate is the unique instrument used
in this department.

Human Resource Department:

Human resources specialists are responsible for recruiting, selecting, interviewing and
placing workers. They may also handle employee relations, payroll and benefits and
training. Human resources managers plan, direct and coordinate the administrative
functions of an organization. Human Resources (HR) is concerned with the issues of

XLVI
II
 managing people in the organisation. The Human Resources department is responsible
for many people related issues in an organisation..

IT department:

Information technology (IT) is the use of computers to store, retrieve, transmit, and
manipulate data, or information, often in the context of a business or other enterprise. The
bank is relied on its IT team for Real Time Data. The Bank uses an MIS system called
FINCORE the entire banking operation is depended on the software and each employee
is well versed and trained for their respective module. The system is frequently updated
and continuous improvement made continuously.

Marketing Department:

Marketing is based on thinking about the business in terms of customer needs and their
satisfaction. It is not concerned with the values that the exchange is all about. In other
words, marketing has less to do with getting customers to pay for your product as it does
developing a demand for that product and fulfilling the customer's needs.

The bank have a full-fledged marketing section recently started because the bank have
been facing tough competition by other cooperative banks. The marketing department
have gold loan, housing loan, car loans and shares in their portfolios. The bank is now
more dependent on marketing department because the competitors are offering better
financial products and with more flexibility.

Finance Department:

The objective of financial department here is to have smooth flow cash in the system and
assets management. The finance department of the bank tries to maintain profitability and
liquidity of the bank. Finance department also sees the accounting activity and internal audit
conducted by the bank. The main function of bank here is fund management and make sure
that the bank remain solvent. Finance department also take care about the various financial
documents used in the bank and stored in the bank. Finance department here prepares budget
and allocate money to different branches of JCOM. The department also make sure that
appropriate action are taken whenever there is a change in banking regulation by RBI.

XLIX
L
 REVIEW OF LITERATURE

The Review of Literature is an important task of the research work. It assists to understand
the significance, background and the current position related to the subject chosen for the research
work. So it is necessary to review all kinds of literature related to the subject matter.

1 S.MAYILVAGANAN AND E. SAUNDAVARJAN (2013) writes that The customer service

in JCOMs comparatively better because local employees are recruited who are well familiar to
the customers. Now circumstances are changing as the business. The well qualified staff should
be selected. They should be trained. The banks should use the means of modern information and
technology new system, such as all time banking, ATM, home banking, Tele banking etc. for
survive in the future competition.

2 JYOTI GUPTA AND SUMAN JAIN (2012) Purpose of this paper to know the lending
practices of co-operative banks in India and measure and compare the efficiency of co- operative
Bank of India and to study the impact of size on the efficiency of the co- operative Banks.

3 SUMEET GIRAM (2014) Writes that The Urban co-operative Banks by its vast numbers and
membership along with its local appeal have become an important sector in the area of banking
and finance. RBI inspection and periodical government audit of UCBs did not show any worth
recording changes in the non professional attitude of the board of director. The RBI made an
attempt by introducing a code of conduct to the Board of Directors and also expected that they
will follow the same. From the above extract, it is clear that the paradigm shift of mind set in the
board of directors collectively and directors individually, becomes a major management of
UCBs.

4 KISHOR NIVRUTTI JAGTAP (2013) In his paper Urban co-operative banks plays very
important role in meeting the requirement of small traders agriculturists and middle class income
group people. The main objectives of the study to know about Urban schedule banks in western
Maharashtra & to study services & new trend adopted by Urban schedule bank.

LI
5 SOYELIYA USHAL (2013) In his paper World economy has progress by help of banking
business purpose of the study to know the lending practices of the banks in India & measure the
efficiency ofco-operative banks of India. Studied the satisfaction level of the banks customers
from bank lending policies.

6 RAJIV KUMAR AND JASMINDEEP KAUR ( 2013) In his paper wrote that Banks are the
backbone of Indian Financial System co-operative banking has been playing a crucial role in the
development of rural economy this paper only focuses on medium & short term rural co-
operative banks working in the Haryana which is predominately a rural economy state.

7 KSHITIJ DESHMUKH (2015) Analysed the performance Cooperative banks involved in

local development and progress of financial position of middle class people. Cooperative banks
play very important role in the financial system. The cooperative banks in India from an integral
part of our money market today.

8 R.RENUKA AND C. ELAMATHI (2013) In this study, the performance of the bank has
been evaluated in terms of loans disbursement year wise as well as district wise, membership,
share capital, total advance, total overdue, present recovery etc. study the progress relating to
revival of rural co-operative.

9 E.G NANASEKARAN ET.AL(2012) Write that The overall financial performance of the
urban co-operative banks in all fronts namely, share capital, membership, profits and reserve
funds, loans and advances, loans issued, working capital, overdrafs etc. are showing a
significantly and undistrubing trend through the application of different statistical tools applied
in the study.

10 SACHIN R. AGRAWAL AND S. S. SOLANKE (2012) In his research paper write that A
co- operative movement plays a major role in development of social and economic environment
in India. But, Govt. of India has not provided a good support to the co –operative due to which
many problems has been faced by them. Thus, an attempt has been made to elaborate the
problems and the relative perspective of co- operative banks in Indian economy.

LII
11 RESHMA DOIPHODE (2011) In her paper write that India obtained freedom in 1947. The
dawn of freedom not only brought in its new horizons of hopes but also a number of problems
such as problem of prove unemployment, of population, of nutrition of schooling of habitations
of standard living and so on. These made it necessary to take immediate steps through process of
planning and development. All these problem were associated with there of growth and
development in areas both economic and non- economic.

12 RANJANA YOVAGAL (2014) Write that the Power of technology has fuelled banking
business and actually transformed traditional banking system. The impact of Internet banking on
cost savings, revenue growth and increased customer satisfaction on Industry is tremendous and
can be a potential tool for building a sound strategy for the development of the economy of the
country. The development and the increasing progress that is being experienced in the
Information and Communication Technology have brought about a lot of changes in almost all
facts of life. E-banking is convenient, not time bound, without geographical boundaries with low
cost services. Besides these benefits, increased use of mobile services and use of internet as a
new distribution channel for banking transactions and international trading requires more
attention towards E-banking security against fraudulent activities. It also pose new challenges for
country authorities in regulating and supervising the financial system.

13 K. VEERAKUMAR (2012) In his research paper write that The impact of Internet banking
on cost savings, revenue growth and increased customer satisfaction on Industry is tremendous
and can be a potential tool for building a sound strategy for the development of the economy of
the country.

14 R.SERANMADEVI AND M.G.SARAVANARAJ (2012) Write that the computer

technology is changing the banking scene. The paper presents a study which aims to analyze the
role of information technology in the Indian Banking sector. The importance of computers and
technology in the banking sector is being regarded as a solution to large number of problems. It
is seen that, in time rapidly changing environment of uncertainty and change in the world, speed,
reliability relevant analysis of critical areas on an exception basis are necessary.

LIII
15 R.D.GANAPURE AND R.D.GAIKWAD (2011) In his research paper mentioned that The
economic development of any country to the large extend depend upon healthy and wealthy
banking system. Banks are backbone for industry sector. This paper aims and objectives at
discussing causes of recession, its effects and measures to be taken to overcome this problem
with reference to Indian banking.

16 R.D. GANAPURE AND R. D. GAIKWAD (2011) Write his paper In the present age of
globalization, India cannot remain isolated from the clutches of recession. This paper aims at
discussing causes of recession, its effects and measures to be taken to overcome this problem
with reference to Indian banking.

17 PADGALWAR S.L. (2012) In his research paper write that More than 70% of the total
population depends upon Agriculture for its livelihood. Over 40% of the GDP in India is
contributed by the rural area. The rural banking plays an very useful role in the development of a
country. The study reveals that the RRBS shows a steady and continuous progress in all spheres
of banking since its inception.

18 VERSHA MOHINDRA AND GIAN KAUR (2011) The present study attempts to
empirically examine the relative efficiency of regional rural banks during the most reform period
spanning from 1991-92 to 2006-07 by using non-parametric technique of data envelopment
analysis.

19 SHANTANU BOSE (2014) Write that urban co-operative banks play significant role in the
development of small & medium industries in urban areas. This paper focuses on the current
scenario of urban co-operative banking system in India, by mentioning its need, its brief history,
its current structure among the co-operative credit society, improvement in financial position of
UCB’s and also highlights the challenges faced by the UCB’s and its future prospects.

20 B.G.GAIKWAD (2012) In research paper write that Rural Banks mainly focused upon the
agro sector, rural banking in India started since the establishment of banking sector in India. All
Rural Banks play very important role in rural development in Maharashtra.

LIV
 21 ANAND K. KITTUR AND GIRIJA V. AUUNTI (2012) Evaluate the performance
of these grass root level commercial banks and agricultural credit in Karnataka. The
researcher has incorporated the parameters like membership, share capital, working capital,
deposits, loans, profits and loss etc.

22 R. UMA DEVI (2012) As agriculture forms the backbone of the Indian economy. East
Godavari is one of the north – eastern districts of Andhra Pradesh. It is clear form the
present study that there was no significant impact of crop loans in irrigated villages,
whereas there was a significant impact on semi-irrigated and non-irrigated villages. The
present study clearly enunciated the advantages enjoyed through improved technology with
the efforts of the bank for the beneficiaries net returns and subsidiary incomes.

23 AGALE SUDHIR VASANTRAO (2012) Write that Primary object of central co-
operative in Maharashtra is to provide for the credit requirements of the primary credit
societies. This paper highlights the process of each district central co-operative banks such
as share capital, loans, deposits, profit and losses etc.

24 RAJESH BARDWAJ ET. AL (2011) In this paper researcher write that Agriculture is
the backbone of the Indian economy co-operative banks play significant role in agriculture
credit in Indian banking sector. In this study analysed the role of co-operative banks in
agriculture credit in India from 2001 to 2007 with the help of ACGR. It indicates
remarkable achievement of co-operative credit movement in India.
R. SERANMADEVI AND M.G.SARAVNRAJ (2012) Analyse the role of
information technology in the Indian banking industry. Evaluate the impact of
information technology on the performance of Indian bank in terms of extended value
added services and customer satisfaction thereby. The study examines the views of
banking customers on the implementation of IT in banks.

LV
 DATA ANALYSIS AND INTERPRETATION

1) GENDER :-
Gender Respondents Percentage %
Male 67 67.3%
Female 33 32.7%

INTERPRETATION :-
According to my research out of 100 respondents, 67 are males and 34
are females.
2) AGE :-

LVI
 Age Respondents Percentage %
Below 20 2 2%
20 – 30 92 92 %
30 – 40 5 5%
40 – 50 0 0%
Above 50 01 1%

INTERPRETATION :-
According to my reaearch, between the age of 20-30, 92% of people are
having their bank accounts as compared to other age groups. Because usually at this
age more number of people are aware about banking services.

3) OCCUPATION :-

LVII
 Profession Respondent Percentage %
Student 52 52 %
Govt. employee 18 18 %
Businessman 30 30 %

INTERPRETATION :-
According to my research, out of 100 respondents 52% are students, 18%
are employees and 30% are businessman.

4) Education Qualification :-

LVIII
 Particulars RespondentS Percentage %
S.S.C 05 5%
H.S.C 05 5%
UG 41 41%
PG 49 49%

INTERPRETATION :-
According to my research, out of 100 respondents, 49% of them are from
P.G. and remainings are falling between SSC, HSC and Graduation. Because post
graduation students are very much aware about banking facilities.

5) Do you have any bank account ?

LIX
 INTERPRETATION :-
According to my research, out of 100 respondents 98% of them are
having their bank accounts and remaining 20% of them are not having bank accoounts.

6) Which type of account do you hold?

LX
INTERPRETATION :-
According to my research, out of 100 respondents 68.7% of them are
having savings account while 26.3% are having current account and 5.1% are having
F.D account.

7) What all benefits & services are you getting from bank?

LXI
INTERPRETATION :-
According to my research, out of 100 respondents 74% of them are availing
net banking services from their bank and 16% are enjoying super saver account while
others are having 24 hours ATM and Demat services in the same ratio of 5%.

8) Do you want to switch your bank account to the new one?

LXII
INTERPRETATION :-
According to my research, out of 100 respondents 58% of them want to
switch their accounts to the new one while rest of 30% don’t want to switch their
account and 12% are not sure for switching their account.

9) Are you satisfied with the service of the bank?

LXIII
INTERPRETATION :-
According to My Research, out of 100 respondents, 73.3% are happy and
satisfied with the bank while rest of 25.7% are not happy with the services of the bank.

10) Are you satisfied with the adequate space within bank?

LXIV
INTERPRETATION :-
According to my research, out of 100 respondents, 76% of them are
satisfied with adequate space within the bank while rest 23% are not satisfied.

11) Are you satisfied with adequate facilities in the bank?

LXV
INTERPRETATION :-
According to my research, out of 100 respondents, 80.2% people
are satisfied with the facilities provided by the bank while rest 17.8% are
not satisfied with the facilities.

12) Are you satisfied with the computerized services of the

bank?

LXVI
INTERPRETATION :-
According to my research, out of 100 respondents, 79% of them are
happy with computerised system in the bank while rest 17% are not happy and
4% of them are not sure.

13) Do you feel adequate number of branches exist in your

locality?

LXVI
I
INTERPRETATION :-
According to my research, out of 100 respondents, 77.2% people are satisfied
of adequate number of branches in thier locality while 18.6% of them do not feel that
adequate number of branches exist in their locality.

14) Are you satisfied with the bank timing?

LXVI
II
INTERPRETATION :-
According to my research, out of 100 respondents, 72.2 % are
happy with their bank timings while rest 24.7% are not happy with their
bank timings.

SUGGESTIONS

 The bank has to increase job for youngster because to work effectively
and efficiency.

LXIX
 The bank has to improve services to satisfy consumer.

 Different department must be there so to decrease work load.

 The bank should provide different scheme to customer.

 The bank should decrease the rate of interest on different types of loans.

 Work rotation should be there so to get experience of different work.

 The bank should expand more in urban areas so increase more customer.

 The bank should improve services to increase customer.

CONCLUSION

The researcher has seen that the data is more changing due to deflation and

LXX
government’s new policies. The bank has to increase speed because of
competition in the market. The bank has to expand its branch to increase
more customer.

BIBLIOGRAPHY

https://www.google.com/url?sa=t&source=web&rct=j&url=https://
LXXI
www.jcombank.com/
&ved=2ahUKEwiLvcTztL30AhXDxzgGHQgcD4EQFnoECBIQAQ&us
g=AOvVaw2qYin0glrRX5GkNNNqPJv

https://www.google.com/url?sa=t&source=web&rct=j&url=https://
www.jcombank.com/wp-content/uploads/2020/07/ANNUAL-REPORT-
2016-
17.pdf&ved=2ahUKEwiLvcTztL30AhXDxzgGHQgcD4EQFnoECCUQ
AQ&usg=AOvVaw3Z1WkTR1r0W_8aV7xoe-M

ANNEXURE

1) Gender : ______________________
2) Age : ________________________
3) Occupation : ________________________
4) Education Qualification : __________________
5) Do you have any bank account ?

LXXI
I
 A) Yes
B) No
C) Maybe
6) Which type of account you hold?
A) Savings
B) Current
C) Fixed Deposit
D) Regular Deposit
7) What all services and benefits are you getting from your bank ?
A) Net Banking
B) Super saver Account
C) 24 Hours ATM
D) Demat Service
8) Do you want to switch your bank account to the new one ?
A) Yes
B) No
C) Maybe
9) Are you satisfied with the service of your bank ?
A) Yes
B) No
C) Don’t know
10) Are you satisfied with the adequate space within the bank ?
A) Yes
B) No
C) Don’t know
11) Are you satisfied with the adequate facilities in the bank ?
A) Yes
B) No
C) Don’t know
12) Are you satisfied with the computerized services of bank?
A) Yes
B) No
C) Don’t know
13) Do you feel adequate number of branches exist in your locality ?
A) Yes
B) No
C) Don’t know
14) Are you satisfied with bank timing ?
A) Yes
B) No
C) Don’t know

LXXI
II