INSTITUTIONAL TRAINING

At
KALLAKURICHI PRIMARYAGRICULTURAL CO-OPERATIVE
CREDIT SOCIETY LTD

Submitted by
MUKESHGUPTA P

Reg. No;19BCP029

In Partial fulfilment for the award of the degree of

BACHELOR OF COMMERCE WITH PROFRSSIONAL ACCOUNTING

GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

Dr. G.R. DAMODARAN COLLEGE OF SCIENCE

(Autonomous, Affiliated to the Bharathiar University and recognized by UGC)

Re-accredited at ‘A’ Grade Level rating by the NAAC and ISO 9001:2008

certified

Coimbatore-641014

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2
 CERTIFICATE

GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

DR. G.R. DAMODARAN COLLEGE OF SCIENCE
(Autonomous, affiliated to the Bharathiar University and recognized by UGC)
Re-accredited at ‘A’ Grade Level rating by the NAAC and ISO 9001:2008 certified
Coimbatore-641014

This is to certify that this Institutional Training is done at Kallakurichi primary

agricultural co-op credit socity ltd submitted by MUKESH GUPTA P, (Reg. No:
19BCP029) submitted in partial fulfilment of the requirements for the award of the
certification of Bachelor of Commerce with Professional Accounting, in October
2021.

TUTOR CO-ORDINATOR

HEAD OF THE DEPARTMENT / DIRECTOR

Submitted for viva voice examination held on

Internal Examiner External Examine

3
 DECLARATION

GRD SCHOOL OF COMMERCE AND INTERNATIONAL

BUSINESS
Dr. G.R DAMODARAN COLLEGE OF SCIENCE
(Autonomous, affiliated to the Bharathiar University and recognized by UGC)
Re-accredited at ‘A’ Grade Level rating by the NAAC and ISO 9001:2008
certified

COIMBATORE 641014

I, MUKESH GUPTA P, hereby declare that the Institutional training report at

KALLAKURICHI PRIMARY AGRICULTURAL CO-OP CREDIT SOIETY LTD submitted to
GRD School of Commerce and International Business, Dr. G. R. Damodaran College of science,
Coimbatore in partial of the requirements for the award of the degree of Bachelor of Commerce
with Professional Accounting, is a record of original work done by me and it has not formed the
basis for the award of any Degree/Diploma/Associate ship/ fellowship or other similar title to any
candidate in any university.

Place: Coimbatore

Date:

MUKESH GUPTA P
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 ACKNOWLEDGEMENT
I wish to express my sincere gratitude to the management of Dr. G.R. Damodaran College
of Science for giving this wonderful opportunity to gain management knowledge in their esteemed
organization.

My special thanks to the principle of our college Mrs. Dr. T.Santha M.Sc., PGDCA, M.Phil.
(CS), Ph.D. (Computer Science), for her support in allowing me to complete my project successfully.

I also wish to express my deep sense of gratitude to our respected Director, Dr. K. K.
Ramachandran, M.com., PGDFT., M.Phil., MFT., MBA., Ph.D.(Commerce), MIMA (India), Ph.D.
(Management) for his unfaltering faith in his students and providing us with new way to excel in the
field commerce.

I express my deepest thanks to the Head of the Department, Dr. S. Dhanraj M.com., M.Phil.,
Ph.D., School of commerce and international business for his support and guidance.

I would like to extend my sincere gratitude to our Co-ordinator and all the faculty members of
Bachelor of Commerce with Professional Accounting for taking part in useful decision and giving
necessary advice and guidance which were extremely valuable.

I sincerely express my thanks to the management of KALLAKURICHI PRIMARY

AGRICULTURAL CO-OP CREDIT SOCIETY LTD for allowing me to do an internship project
in their esteem organization. I also extend a huge thanks to my parents, friends and the almighty for
having supported me in doing this project.

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SI.NO CHAPTERS PAGE NO:

01 INTRODUCTION TO THE BANK 7

OBJECTIVES AND SCHEMES OF PACS 18

02
03 FUNCTIONS OF PACS 21

04 LEARNING EXPERIENCE 46

05 CONCLUSION 47

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INTRODUCTION TO BANK:

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial

services, such as wealth management, currency exchange, and safe deposit boxes. There are two types of

banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national

government or central bank. The bank generates profits from the difference in the interest rates charged and

paid and its substitutes by accepting time and demand deposits, making loans, and investing in

securities. where customers can save or borrow money. Customer's money may be placed in the bank for safe

keeping. Banks may give loans to customers under an agreement to pay the money back to the bank at a later

time, with interest. Banking is an activity which involves acceptance of deposits for the purpose of lending or

investing.

Banks act as payment agents by conducting checking or current accounts for customers,

paying cheques drawn by customers in the bank, and collecting cheques deposited to customers' current

accounts. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits,

and by issuing debt securities as banknotes and bonds. Banks lend money by making advances to customers

on current accounts, making instalment loans, and by investing in marketable debt securities and other forms

of moneylending.

BANKING :

Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a safe place to

store extra cash and credit. They offer savings accounts, certificates of deposit, and checking accounts.

Banking can be defined as the business activity of accepting and safeguarding money owned by other
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 individuals and entities, and then lending out this money in order to earn a profit. It is carried out by financial

institutions. They perform the function of safeguarding money and lend it to public in the form of

loan. Lending activities can be performed either directly or indirectly through capital markets.

TYPES OF BANKS:

1. Commercial bank:

Commercial banks focus on business customers. Businesses need checking and savings accounts just like

individuals do. But they also need complex services, and the dollar amounts (or the number of transactions)

can be substantial. They might need to accept payments from customers, rely heavily on lines of credit to

manage cash flow, and work with letters of credit to do business overseas. Commercial Banks provide

financial services to businesses, including credit and debit cards, bank accounts, deposits and loans, and

secured and unsecured loans.

2. Retail bank:

Retail banks are probably the banks you‘re most familiar with.Your checking and savings accounts typically

come from a retail bank or credit union, which focuses on consumers (or the general public) as customers.

These banks provide credit cards, they offer loans, and they‘re the ones with numerous branch locations in

populated areas. It also known as consumer banking refers to the services banks provide to individual

customers. Common retail banking services include checking and savings accounts, mortgages, credit cards,

and auto loans.

3. Investment bank:

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Investment banks help businesses work in financial markets. If a company wants to go public, borrow a

significant amount, or sell debt to investors, they often use an investment bank. An investment bank (IB) is a

financial intermediary that performs a variety of services. Most Investment banks specialize in large and

complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and

the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or

financial adviser for institutional clients.

4. Credit union:

A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size

from small, volunteer-only operations to large entities with thousands of participants spanning the country,

credit unions can be formed by large corporations, organizations, and other entities for their employees and

members. Credit institutions are created, owned, and operated by their participants. As such, they are not-for-

profit enterprises that enjoy tax-exempt status. Credit unions offer products and services more or less identical

to most retail and commercial banks.

5. Central bank:

Central banks manage the monetary system for a government A central bank is a financial institution

given privileged control over the production and distribution of money and credit for a nation or a group of

nations. In modern economies, the central bank is usually responsible for the formulation of monetary

policy and the regulation of member banks.

Central banks are inherently non-market-based or even anticompetitive institutions. Although some are

nationalized, many central banks are not government agencies, and so are often touted as being politically

independent. However, even if a central bank is not legally owned by the government, its privileges are

established and protected by law.

6. co-operative bank:

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 A bank set up to provide finance to agriculturist, rural industries and to trade and industry of urban areas but

up to a limited extent. Cooperative Banks are the financial institutions that are owned and run by their

customers and operates on the principle of one person one vote. Cooperative Banks offer a range of services

like accepting deposits and granting loans to the members and even non-members. Accepting deposits from

the members and the public, and granting loans to farmers and small businessmen.

INTRODUCTION TO CO-OPERATIVE BANK:

Cooperative bank is an institution established on the cooperative basis and dealing in ordinary banking

business. Like other banks, the cooperative banks are founded by collecting funds through shares, accept

deposits and grant loans. Co-operative banks are often regulated under both banking and cooperative

legislation. They provide services such as savings and loans to non-members as well as to members, and some

participate in the wholesale markets for bonds, money and even equities. Cooperative banking systems are

also usually more integrated than credit union systems. Local branches of co-operative banks select their own

boards of directors and manage their own operations, but most strategic decisions require approval from a

central office.

TYPES OF COOPERATIVE BANK

1. Primary Credit Societies

These institutions are formed at village level or town level. The operations of such banks are limited to a very

small area. 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 and pesticides.

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2. Central Co-operative 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 consist of share capital, deposits, loans and overdrafts from state co-operative banks and

joint stocks. These banks provide finance to member societies within the limits of the borrowing capacity of

societies. They also conduct all the business of a joint stock bank.

3. 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 72 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 the farmers.

4. Land Development Banks

The Land development banks are organized 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

banks oversee, the primary land development banks situated in the districts and tehsil areas 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. Urban Co-operative Banks The term Urban Co-

operative Banks (UCBs), though not formally defined, refers to primary co-operative banks located in urban

and semi urban areas

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HISTORY OF CO-OPERATIVE BANK:

Cooperative movement in India was started primarily for dealing with the problem of rural credit. The history

of Indian cooperative banking started with the passing of Cooperative Societies Act in 1904. The objective of

this Act was to establish cooperative credit societies―to encourage thrift, self-help and cooperation among

agriculturists, artisans and persons of limited means.‖

Many cooperative credit societies were set up under this Act. The Cooperative Societies Act, 1912 recognised

the need for establishing new organisations for supervision, auditing and supply of cooperative credit. The

objective of this Act was to establish cooperative credit societies―to encourage thrift, self-help and

cooperation among agriculturists, artisans and persons of limited means.‖ Cooperative bank is an institution

established on the cooperative basis and dealing in ordinary banking business. Like other banks, the

cooperative banks are founded by collecting funds through shares, accept deposits and grant loans. Since,

1950s, they have come a long way to support and provide assistance in activities like credit, banking,

production, processing, distribution/marketing, housing, warehousing, irrigation, transport, textiles, dairy,

sugar etc., to household. Indian cooperative structures are one of the largest such networks in the world with

more than 200 million members. It has about 67% penetration in villages and fund 46% of the total rural

credit. It also stands for 36% of the total distribution of rural fertilizers and 28% of rural fair price shop.

BANK PROFILE

Type : public

Industry : Banking& Financial services

Founded : January1958

Areaserved : India

Keypeople : Kalaiselvan M(manager)

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Services : Debit cards, consumer banking, corporate banking, finance and insurance,

agricultural loans, investment banking, mortgage loans, private banking, private

equity, wealth management

EXCUTIVE CHART

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 STRUCTURE OF COOPERATIVE BANK:

MEANING OF COOPERATIVE CREDIT INSTITUTIONS:

A credit union is a member-owned financial cooperative, democratically controlled by its members, and

operated for the purpose of promoting thrift, arranging credit at competitive rates, and providing so many

other financial services to its members.

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The Co-operative Credit Institutions in India can be classified as under a three-tier structure.

(i) Primary Credit Societies at the bottom

(ii) Central Co-operative Bank at the middle

(iii) State Co-operative Bank at the top

The primary societies are functioning in the various towns and villages, the Central Banks at the district

headquarters and the State Co-operative Banks at the state capitals forming the apex of the system.

The Reserve Bank of India assists the co-operative structure by providing concessional finance through

nabard in the form of General Lines of Credit for lending to agricultural & allied activities. Thus, the whole

system is integrated with the banking structure of the country. Let us have a discussion about these institutions

one by one.

(I) THE PRIMARY AGRICULTURAL CREDITSOCIETIES:

A primary society is an association of borrowers and non-borrowers residing in a particular locality and taking

interest in the business affairs of one another. As membership is practically open to all inhabitants of a

locality, people of different status are brought together into the common organization.

(II) CENTRAL CO-OPERATIVEBANKS:

A Central Co-operative Bank is a federation of primary societies in a specified area. Where membership of a

Central Co-operative Bank is restricted to primary societies only, it is known as a 'banking union'. Nowadays,

individuals are also admitted as members of almost all Central Co-operative Banks.

(III) STATE CO-OPERATIVEBANKS:

At the top of the co-operative banking, there are State Co-operative Banks, organized with the object of

attracting deposits from the rich urban classes. These Banks are also more suitably equipped to serve as

channel between the co-operative movement and the joint stock banks.

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INTRODUCTION TO PRIMARY AGRICULTURAL CREDIT SOCIETY:

Primary Agricultural Credit Societies (PACS) occupy a predominant position in the co-operative credit

structure and form its base. A PACS is organized at the grass roots level of a village or a group of small

villages. It is this basic unit which deals directly with the rural (agricultural) borrowers, gives those loans and

collects repayments of loans given. It serves as the final link between the ultimate borrowers on the one hand

and the higher financing agencies, namely the SCBS, and the RBI/NABARD on the other hand.

As such, the health and strength of the co-operative credit movement depends crucially upon the health and

strength of these societies. But, despite much official effort and support, and numerical expansion of the PACS

in membership, working capital, loans given and other activities, their health and working leave much to be

desired.

At the end of June 1989 there were 87,000 PACS. ‗These societies covered about 90% of 5.8 lakh villages.

Their membership of 9 crores covered about 65% of the total estimated population of about 14 crores of rural

households. More than half of the members of PACS are persons of small means—small fanners, agricultural

laborers and rural artisans and about 25% of them belong to scheduled castes and tribes.

All these are very strong features of the co-operative credit organization, as it alone provides the vast network

of institutional credit agencies throughout the length and breadth of the country of sub continental size,

covering the large bulk of Indian villages. And yet the organisation is not fulfilling its role adequately due to

several weaknesses.

The working capital of the PACS is derived mainly from borrowings from the CCBs and in smaller

proportions from owned funds and deposits. That the PACS have failed to attract deposits is not so much a

reflection of low savings habits of the rural population as a reflection of the availability of better assets to rural

savers in terms of both rate of return and riskiness.

The richer farmers either invest their saving directly in physical assets or lend them directly as agriculturist

moneylenders to others in the village or hold them in deposits with banks or post offices. Only the residual

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savings of those households come to the PACS who want to borrow later from these societies or who want to

wield influence in the actual working of the societies. To attract more deposits, these societies must be in a

position to pay higher interest rates on their deposits than offered by other institutions and must inspire greater

confidence regarding safety of deposits with them. For this, the societies must be managed efficiently as well

as honestly.

High net borrowings from CCBs show that PACS act mainly as distributional channels for funds mobilised

elsewhere. Even this role is not played well by them, as they suffer from a very high ratio (of more than 40%)

of over dues to loans outstanding/demand.

Only the members of a PACS are entitled to borrow from it. Most loans are for agricultural purposes and are

short-term. Medium-term loans for such purposes as sinking or repair of wells, purchase of machinery (mostly

pump sets for irrigation) and cattle are also given. But consumption loans, given mostly to landless labourers,

artisans -and marginal farmers, are negligible. The share of loans given going to weaker sections is usually

about 40 % of loans. The amount of loans and advances outstanding at the end of June 1989 was about Rs.

6,000 crores.

A varying number of PACS also undertake non-credit activities such as handling the supply of farm requisites,

distribution of consumer goods among their members, constructing go-downs, and marketing of agricultural

produce and the processing of it.

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OBJECTIVES OF PRIMARY AGRICULTURAL CO-OPERATIVE SOCIETY:

1. For the membership of co-operatives credit society members should belong to located at village of co-

operative societies.

2. The work of PACS should limited to its village only.

3. The liability of PACS should be unlimited.

4. PACS is liable for to the deposits and loans on its account.

5.PACS provides loans to its members only.

6.Loans repayment schedule can be decided by the co-operative society as per the significance purpose of the

loans.

7.PACS provide the loan only for medium and short term purpose.

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 BANK HISTORY

In 1958 The villupuram District Central Co-operative Bank Ltd was incorporated and registered in madras,

India..The registration of the Bank was done by,on 12th january 1958 and it commenced working on 22th

january 1958.

INITIAL SHARE CAPITAL

The authorized share capital of the Bank was Rupees 50000/- divided into 500 shares of Rs.100/- each.All

the shares were allotted even on the starting date. The individual share holders were solely responsible for the

conduct of the Bank‘s affairs.

THE FIRST SET OF DIRECTORS

 Rangan A President,

 Sri.M.kalaiselvan,MA,D.C O .OPSecratry

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 BRANCH INTRODUCTION

BRANCH PROFILE

Name of the bank ;kallakurichi primary agricultural cooperative credit society.

Bankaddress : raja nagar.kallakurichi,

Location : kallakurichi, tamilnadu.

Period of training : 10/08/202 to 09/09/2021.

Branchmanager :KalaiselvanM(manager)

The primary agricultural cooperative credit society kallakurichi branch is located at raja

nagar,kallakurichi,tamil nadu

The growth of the Bank is really increased from their early periods to current period. The chairman for

the bank is Rangan.A

Assocition’s profit for last 5years

2015-2016---226679.44

2016-2017---800494.16

2017-2018---1237594.37

2018-2019---1503309.32

2019-2020---275379.97
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MISSION AND VISION

Mission

The mission of the kallakurichi primary agricultural cooperative credit society Ltd., is to develop

financially viable, well organized technically efficient affiliated cooperatives in Kallakurichi Districts for

providing credit for agriculture and rural development.

Vision

Expansion of the business in all economic development activities with modern facilities. Adopting

modern technologies to serve customers with smile. Taking effort to bring Bank to ISO standard. Increase our

profits in the true spirit of Co-operation.

FUNCTIONS OF THE CO-OPERATIVE BANK

PRIMARY FUNCTIONS

1. Accepting deposits:

Deposits are the amount of money that a customer hands over to the bank. This is known as making a

deposit.Thedepositsareofafewtypesnamely:SavingDeposit,FixedDeposit,CurrentDepositandtheRecurrent Deposit.

The various deposit schemes are based on the type of deposit and the frequency of depositing. For example, in

a fixed deposit a definite sum is handed over to the bank for a few years. The interest is only

compoundedifthedeposittermiscomplete.Providingtheseservicesofdepositisoneoftheprimaryfunctionsofa bank.

Types of deposit:

Saving bank account:

This type of account is suitable for people who have a definite income and people who are looking to save
money. This type of account can be opened with a minimum initial deposit that varies from bank to bank.

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Money
canbedepositedanytimeinthisaccountandcanbewithdrawalanytimebymaintainingaminimumamounton your
account.

All the transactions can be made either by signing a withdrawal form or by issuing a Cheque or by using ATM

card. Normally banks put some restriction on the number of withdrawal from this account and also the interest

rate differs from bank to bank. . A minimum balance has to be maintained in the savings account as prescribed

by the bank.

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DOCUMENTSREQUIRED

 Application form

 Recent Photograph two numbers

 Address Proof and Identify proof

Fixed deposit:

Someoftheaccountholdersmayliketoputtheirmoneyforalongerperiod.Suchdepositsofferahigher rate of

interest. If money is deposited in savings bank account, banks allow a lower rate of interest. So that the

moneyisdepositedinafixeddepositaccounttoearnainterestatahigherrate.Aminorwithnaturalguardiancan also open

the fixed deposit. The interest rate depends upon the period of the deposit as prevailing from time to time.This

type of deposits is made only for the longer period of time. This period of deposit may range from15

daystothreeyearsormorewerethewithdrawalisnotallowed.Themaximumperiodoffixeddepositis10years.

Ifthedepositorsrequesttoencashtheamountbeforematurityperiod.Thenthebank gives lower interest than what

wasagreedupon.Theinterestamountonfixeddepositaccountcanbewithdrawnatcertainintervalsoftime.The most

popular form of term deposits is fixed deposits. The special interest in provided for the senior citizen.

DOCUMENTSREQUIRED

 Application form

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  Recent Photograph two numbers

 Address Proof and Identify proof

 Copy of PAN card

Recurring deposit

Whileopeningtheaccounttheaccountholderhastoagreetodepositafixedamountonceinamonthfora

certainperiod.Thetotaldepositalongwiththeinterestthereinispayableonmaturity.However,thedepositorcan also be

allowed to close the account before its maturity and get back the money along with the interest till that

period.Theaccountcanbeopenedbyapersonindividuallyorjointlywithanother,orbytheguardianinthename

ofaminor.Therateofinterestallowedonthedepositsishigherthanthatonasavingsbankdepositbutlowerthan

therateallowedonafixeddepositforthesameperiod.Theminimumperiodisfor1yearandthemaximumisfor 5years.

DOCUMENTSREQUIRED

 Application form

 Recent Photograph two numbers

 Copy of PANcard

 The account will be opened on submission of the duly filled in application form along with the initial

deposit amount in cash.

Current Deposit Account:

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 There are restrictions on the number of withdrawals in savings bank account, that type of account is not

suitable for making daily transactions. Businessmen, partnership firms, companies and institutions such as

schools, colleges, and hospitals have to make payment through their bank accounts. They need to have an

account from which withdrawal can be made any number of times. The minimum balances should also be

maintained by the accountholder who opens the current deposit account.

Like savings bank account, this account also requires a certain minimum amount of deposit while opening the

account. Banks open a current account for them. On this deposit, the bank does not pay any interest on the

balances. For the convenience of the accountholders banks also allow withdrawal of amounts in excess of the

balance of the deposit in this account. This is known as overdraft facilities.

DOCUMENTSREQUIRED

 Application form

 Recent Photograph two numbers

 Address Proof and Identify proof

No frill account:

A no-frills account is a bank account that can be opened and maintained with a zero balance, levies zero or

nominal charges and does away with the unnecessary services or frills.

TYPE OF DEPOSIT PUBLIC%PER ANNUM SENIORCITIZEN %

Savings Bank Account 4.5% 4.5%

Term Deposits

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 TYPE OF DEPOSIT PUBLIC%PER ANNUM SENIORCITIZEN %

15 days to 45 days 4.50% 4.50%

46 days to 90 days 4.75% 4.75%

91 days to 180 days 5.25% 5.25%

181 days to 364 days 6.25% 6.75%

12 months to 24 months 7.00% 7.50%

25 months to 36 months 6.75% 7.25%

37 months and above 6.50% 7.00%

The needs of co-operative bank are different, Co-operative banks in India finance rural areas under:

 Farming

 Cattle

 Milk

 Hatchery

 Personal finance Co-operative banks in India finance urban areasunder:

 Self-employment

 Industries

 Small scaleunits

 Homefinance

 Consumerfinance

 Personalfinance

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NECESSARY DOCUMENTS OF MEMBERSHIP

a. Adhar cardzerox

b. Pan cardzerox

c. Photo

d. rs 500 for account opening and rs 1000 in case of jointaccount

Granting Loans and Advances:

Thebanklendspeoplemoneyonatime-interestbasis.Eachloanamountispassedbythebank afterdue

considerationandsecuringthebank‘sprofit.Thebankalsogivesadvancestoitscustomers.Theadvancescanalso be

called as overdraft. These are also the primary functions of the banks. The bank provides the services of

overdraft,cashcredits,loans,andagriloans.

Types of Loans:

Agricultural loans:

This is a loan which will be provided to the farmers for agricultural purpose at the rate of interest of 4.5% .

This is provided only to the members of the society.

Secured Loans:

Thisisaloanwhichwillbesecuredbysomeassetorpropertyoftheloanholder.Heretheborrowerwill

pledgehisassetsagainsttheloan.Incasetheborrowerfailstopayonhisloanevenaftertheseveralcallsmadeby

thebank,thenbankwillbecometheownerofsuchasset.Itcanselltheassetandrecovertheamountowedtothem

afterallthecallshasbeenmade. Amortgageisonepopulartypeofsecuredloan.Heresomepropertyiskeptas collateral

to borrow funds from the bank. If the borrower fails to repay in time, then the creditor will gain ownership of

theproperty.

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 Unsecured Loan:

An unsecured loan is a loan that is issued and supported only by the borrower's creditworthiness, rather than

by any type of collateral. Unsecured loan sometimes referred to as signature loans or personal loans are

obtained without the use of property or other assets as collateral. The terms of such loans, including approval

and receipt, are therefore most often contingent on the borrower's credit score. Borrowers must generally have

high credit ratings to be approved for certain unsecuredloans.

Demand Loan:

Thesearetypicallyshort-termloans.Theydonothaveafixedterm.Thismeansthattheyarepayableon

demand,wheneverthelenderdemands,theborrowerhastorepay.Ademandloanalsowillnothaveafixedrateof

interest.Therateswillfluctuateaccordingtotheprimelendingratesprevalentinthemarket.

Subsidized Loan:

Inasubsidizedloantherateofinterestissubsidized.Whichmeanstheborrowerisgiventheloanatalower

rateofinterestthanthegoingrate.Thegovernmentistheonethatprovidesthesaidsubsidy.

Jewel loan:

The gold loan, also referred as a loan against gold, is a secured loan that a borrower takes from a lender

in lieu of gold ornaments such as gold jewellery. The loan amount sanctioned to you by lenders is generally a

certain percentage of the gold‘s value. You can repay it through monthly instalment after which you get your

gold articles back.

Business loan:

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 Any Individuals engaged in business owning building with adequate means to repay the principal and interest

of the loan shall be eligible to apply for the loan. The purpose is for the loan is development of the bank.

SECONDARY FUNCTIONS OF THE BANK

The secondary functions of the Bank are either selling gold coins to the public or selling insurance

products and selling mutual fund products etc.

1. Agency Functions:

The bank is an agent for its customers in a way that it invests on behalf of its customer. Acting as the agent of

the customer the bank may transfer funds, the collection of cheques, periodic payments, portfolio management,

periodic collections, and several other agency functions. All of these functions are the secondary functions of

the bank.

2. General Utility Functions:

The bank also performs several utility functions. Some of the most important utility functions of the banks may

include the issue of drafts, letter of credits etc., locker facility, underwriting of shares, dealing in foreign

exchange, project reports, social welfare programmes, other utility functions. The banks also provide several

services like the safe deposit locker facilities, safe custody facilities and Demat accounts. The opening of

Demat accounts allows the account holder to trade in the stock exchange or the money market directly. The

customer that holds a Demat account candirectlybuyorsellsharesfromthecapitalmarket.TheGeneralUtility

FunctionsarealsocalledasSocialdevelopmentfunctions.Insomeareas,thebankswillhelpyouwithallthe

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transactions that you will have to do during a course of time. For example, you will be able to pay your phone,

electricity and other utility bills from a center that is run by the banks. This sums up the functions of the banks.

Debit Cards, Credit Cards

“Plastic money”: The concept of money in form of cards such as credit cards and debit cards, instead of

the use of actual currency is what we call plastic money. In India, in the recent years, online transactions and

bank cards have seen a huge upsurge.

1. Debit Cards:

A debit card is a bank card used to make payments from your own bank account. Debit cards were introduced

in 1966 and have been around since. They are actually a linked to the cardholder‘s bank account. So they

basicallyprovideanelectronicaccesstothebankaccountofthecardholder.Debit cards can be used to conduct online

transactions.They can alsobeused at products or services at the various points of sales.When you use a debit

card it withdraws the balance from your bank account, i.e. it debits your bank account. So if there is

insufficient balance in the account, the transaction will be unsuccessful.Usually,there is amagnetic strip in the

card that reads the debit cards information. But recently due to security concerns, banks have started

issuing chip debit cards. The computer chip authenticated the debit card and is considered safer than the

magnetic cards.

2. Credit Cards:

Credit cards are also payment cards that the banks or other financial institutes offer to their customers.

But unlike debit cards, they are also a tool of short-term lending, because a credit cardholder can withdraw

money beyond the limits of their bank accounts. So a cardholder can borrow money from the bank using his

credit card.

So credit cards offer the cardholders a line of credit. The money has to be repaid to the bank with the

interest that the bank charges. The time of the repayment will depend according to the terms and conditions of

30
the credit cards. Also, there is a credit limit on the card. This is the maximum credit the cardholder can run up

on a card.

LOCKER FACILITIES

For the safety of your valuables, we offer safe deposit locker facility at a large number of our branches. There

is a nominal annual rent, which depends on the size of the locker and the centre at which the branch is located.

The rent is payable in advance for the Financial Year. A copy of the locker agreement regarding operation of

the locker can be provided to the locker hirer at the time of allotment of the locker.

It is always beneficial to avail the benefits of nomination facility/ survivorship clause provided to locker-

hirers. The major advantage of availing these facilities is that in the event of unfortunate death of one of the

joint locker-hirer, the right to the contents of the locker does not automatically devolve on the surviving joint

locker-hirer/ nominee, unless there is a survivorship clause/ nomination.

VARIOUS DEPARTMENTS IN ABANK

Subject to governmental authority, National or State, according to its charter, the management of

any bank is vested in its board of directors. Such directors are elected by the stockholders. The directors elect

the officers, president, vice-president, cashier and assistant cashier, who are the executive heads of the

institution and are charged with the duty of administering its affairs. The number of vice-presidents and

assistant cashiers depends upon the size of the bank. The directors may also appoint committees such as

a discount committee, an executive committee, and an examination committee that the business of the bank

may seem to require. According to the character of their duties and responsibilities, bank officers and

employees may be classified as (1) executives, (2) tellers, (3) bookkeepers. Whenever it becomes necessary,

on account of volume of business, to divide the work in a bank into divisions, each employing a group of

clerks, suchdivisionsareorganizedintodepartmentseachhavingadepartmenthead,whoisusuallyateller,ahead

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bookkeeper, or perhaps a junior officer. In the very large banks the executive staff is itself organized into

groups, and there may be a vice-president and one or two assistant cashiers in charge of each important

department.Theworkofadepartmentinalargebankisnothingmorenorlessthantheworkofasinglemanin

asmallbankapportionedamongseveralmen.Thedepartmentsintowhichamediumsizedbankisordinarily divided

are as follows:

(1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits, distributes checks to

bookkeepers and other departments, prepares exchanges for clearing houses, and turns cash over to the

paying telleratend of day.

(2) Transit Department (Teller) - The transit department may be a subdivision of the receiving teller's

departmentandwasformerlyknownbyotherterms,suchascorrespondence,foreigncheck,miscellaneous check

or country check department. This department assorts checks and other cash items payable out of town,

indorses them and lists them on letters addressed to other banks. It gives totals of outgoing or

remittanceletterstogeneralledgerbookkeeperatendofday.Thisdepartmentoftenkeepstherecordsof

exchange charged on out-of-town cheques, and of delayed credits on interest balances made necessary

because of uncollected funds deposited.

(3) Paying Teller's Department (Teller) - Pays or certifies checks, is in charge of the signature book or cards

bearingtheauthorizedsignaturesofalldepositors,shipscurrency,isinchargeofthevaultcash,andmakes

uppayrolls.

(4) Note Teller's Department (Teller) - Collects notes and drafts due at the bank or elsewhere in the city. It is

usuallyinchargeoftherunnersormessengerdepartment,whichisasubdivision,anditusuallyreceives

depositsmadebyotherbanks,andmayperformthefunctionsofamailteller.

(5) Collection Department (Teller) - Collects collections notes, drafts and other "time" items when payable out

of town,and credit accounts of depositors when are advised paid.

(6) Loan or Discount Department (Executive) - Receives notes submitted for discount or makes loans, figures

discount and interest,and has charge of collateral securing loans.

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 (7) Credit Department (Executive) - Secures and collects information relating to borrowers, checks statements

submittedbythem,andisinchargeofcreditfiles,whichcontaininformationastothereliability,business habits

and financial strength of borrowers.

I. KNOWYOURCUSTOMERFORMANDCUSTOMERINFORMATIONFILE

(CIF)

Know your customer, alternatively known as your client or simply KYC. It is the process of a business

verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal

intentions towards the bank relationship. The term is also used to refer to the bank regulations and anti-money

laundering regulations which govern these activities. Know your customer processes are also employed by

companies of all sizes for the purpose of ensuring their proposed customers, agents, consultants, or distributors

are anti-bribery compliant. Banks, insurers, export creditors and other financial institutions are increasingly

demanding that customers provide detailed due diligence information. The objective of KYC guidelines is to

prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering

activities. Related procedures also enable banks to better understand their customers and their financial

dealings. This helps them manage their risks in a well judged manner. Today not only the banks but also

different online businesses also implement KYC.

The term C I Fstandsfor ―Customer Information File which contains all the personal information of

the bank account . The CIF is 11 digit number that is used by banks to decode the information of their

customers about the loans, demat and KYC that includes identity proofs, address proof when needed. This 11

digit code is unique per customer for their different accounts. This code cannot be changed with accounts. The

number is specially coded with all the information about loans, demat and personal information about the

customer. It helps different banks to track the information about the customer of their different accounts at one

place. This may avoid confusion and fraudulent activities that may happen while sanctioning loans. It contains

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 vital statistics, account balances or transaction information and type of account customer held to offer various

product services and administrative purposes. It provides various activities of the customer at one place. CIF

number is held in electronic formal today. It can also be found on paper in various relevant documents. CIF

number can be considered the same as Aadhar card number while Aadhar number gives unique identity, the

CIF number provides banking information of the customers with a unique code.

ROLE AS AN INTERN:

I have referred the Known Your Customer (KYC) form of customer and if columns are unfilled, I guide the

customer to fill the column. I have arranged all of the KYC forms based on the account number. I also got the

knowledge related to the Customer Information Folio(CIF) number creation while opening a new account and

also taught about how the information are been fed in the computer system.

II. BANK PASSBOOK AND SIGNATUREVERIFICATION:

Traditionally,apassbookisusedforaccountswithalowtransactionvolume,suchasa savings account.

Abanktellerwouldwrite,byhand,thedateandamountofthetransaction,theupdatedbalance,andenterhis

or her initials but now all has became automatic using technology. In the late 20th century, small dot

matrixor inkjet printerswere introduced capable of updating the passbook at the account holder's

convenience,eitheratanautomatedtellermachineorapassbookprinter,eitherinaself-servemode,bypost,

or in a branch.

Passbook or Bank Statement is a copy of the account of the customer as it appears in the bank‘s books.

When a customer deposits money and cheques into his bank account or withdraws money, he records these

transactions in the bank column of his cashbook immediately. Correspondingly, the bank records them in the

customer‘s account maintained in its books. Then they are copied in a passbook and given to the customer.

With the computerization of banking operations, bank statements (in lieu of passbook) are issued to the

customers periodically. Thus passbook is a record of the banking transactions of a customer with a bank. All

entries made by a customer in his cashbook (bank column) must be entered by the bank in the passbook.
31
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 Signature recognition is a behavioural biometric. It can be operated in two different ways:

Static: In this mode, users write their signature on paper, digitize it through an optical scanner or a camera, and

the biometric system recognizes the signature analyzing its shape. This group is also known as "off-line".

users write their signature in a digitizing tablet, which acquires the signature in real time. Another possibility

is the acquisition by means of stylus-operated PDAs. Some systems also operate on smart-phones or tablets

with a capacitive screen, where users can sign using a finger or an appropriate pen. Dynamic recognition is

also known as "on-line". Dynamic information usually consists of the following information

ROLE AS AN INTERN:

They taught how to make passbook entries using computer system. I also learned how The customer

signature is fed into the computer and how to verify the customer signature.

III. COMPARSION OF FINALACCOUNTS

A final account gives an idea about the profitability and financial position of a business to its management,

owners, and other interested parties. All business transactions are first recorded in a journal. They are then

transferred to a ledger and balanced. It is prepared for a specific period. The preparation of a final accounting

is the last stage of the accounting cycle. It determines the financial position of the business. Under this it is

compulsory to make trading account, the profit and loss account and balancesheet.

Trading Account:

A trading account sheet shows the results of the buying and selling of goods. The trading account is

prepared to show the trading results of the business, e.g. gross profit earned or gross loss sustained by the

business. It records the direct expenses of a business firm. According to J.R.Batlibboi- "The Trading Account

shows the result of buying and selling goods. In preparing this account, the general establishment charges are

ignored and only the transactions in goods are included."

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Profit and Loss Account:

This account is prepared to ascertain the net profit/loss of a business during an accounting year and

expenses of an accounting year. It records the indirect expenses of a business firm eg: rent, salaries,

advertising exp etc.Profit and loss A/C includes expenses and losses and income and gains which has occurred

in business other than the production of goods and services.

Balance Sheet:

The balance sheet demonstrates the financial position of a business on a specific date. The financial
position of a business is found by tabulating its assets and liabilities on a particular date. The excess of assets
over liabilities represents the capital sunk into the business, and reflects the financial soundness of a company.

Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector
minus the value of all its outstanding liabilities, Since financial assets minus outstanding liabilities equal net
financial assets, net worth can also be conveniently expressed as non-financial assets plus net financial assets.
Net worth can apply to companies, individuals, governments or economic sectors such as the sector of
financial corporations or to entire countries.

ROLE AS AN INTERN:

I have made comparison between the last year and the current year balance sheet to analyse whether the

cooperative bank performance has increased or not and I also analysed cash flow statement of the previous

year. To ensure that the cash inflow and outflow has been increased or decreased. Even they have calculated

the net worth concept where we will be able know their status of their owned liability.

IV. NATIONAL ELECTRONIC FUND TRANSFER (NEFT) ANDREAL-TIME

GROSS SETTLEMENT (RTGS)

National Electronic Funds Transfer (NEFT) is an system maintained by the Reserve Bank of India (RBI).

National Electronic Fund Transfer (NEFT) is a nation-wide payments system that allows transfer of funds

36
 from one bank‘s account to another. With an increased focus on online banking, NEFT has become one of the

most popular ways of transferring funds. Since it can electronically transfer funds from any bank branch to

any individual, it has eliminated the need to visit a bank branch for transfer of funds. There is only a single

limitation on the amount of one-time transaction through cash mode, which is Rs. 50,000. Depending on each

bank, timings and settlement period for each transaction could be different. Ordinarily, if funds are transferred

within the same bank account, one can expect to receive them within a matter of few seconds. However, when

such transfers take place between different banks, the settlement time could be longer.

Real Time Gross Transfer (RTGS), If you want to transfer funds to anyone across the country, you have few

options available to do that. However, if you want to transfer huge amount, your options are quite limited. One

such option is RTGS or the Real Time Gross Settlement. It is a fund transfer mechanism that allows for real

time processing and settlement of requests for fund transfers. The system ensures that the receiver has access

to the funds almost instantly, rather than after certain duration as is the case with some other payment modes.

The settlement of requests takes place on instructions basis and not on batch clearing basis. The Reserve Bank

of India keeps a track of all the transfers and thus all the successful transfers are irreversible. RTGS payments

typically incur higher transaction costs and usually operated by a country's central bank. For all the fund

transfer requests between Rs.2 Lakh and Rs.5 Lakh, banks can charge their customers a maximum of Rs.30

per transaction. For transactions above Rs.5 Lakh RBI sets a cap of Rs.55 per transaction.

ROLE AS AN INTERN:

I learned to fill the NEFT (National Electronic Fund Transfer) form and the RTGS (Real Time Gross

Transfer) form on behalf of the customer of providing their beneficiary details when the customer to the bank

for making the transaction through NEFT or RTGS form.

V. CHEQUE BOOK:

A cheque, that orders a bank to pay a specific amount of money from a person's account to the person

in whose name the cheque has been issued. The person writing the cheque, known as the drawer has

37
a transaction banking account (often called a current, cheque, chequing or checking account) where their money is

held. The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and

signs it, ordering their bank, known as the drawee, to pay that person or company the amount of money stated.

Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry

large amounts of money. Paper money evolved from promissory notes, another form of negotiable instrument

similar to cheques in that they were originally a written order to pay the given amount to whoever had it in their

possession (the "bearer").A cheque is a negotiable instrument instructing a financial institution to pay a specific

amount of a specific currency from a specified transactional account held in the drawer's name with that

institution. Both the drawer and payee may be natural persons or legal entities. Cheques are order instruments, and

are not in general payable simply to the bearer instruments are, but must be paid to the payee. In some countries,

such as the US, the payee may endorse the cheque, allowing them to specify a third party to whom it should be

paid. A cheque book is a book of cheques which your bank gives you so that you can pay for things by cheque. .

For the cheque book issued by the bank, they will collect the certain amount as charges from the accountholder.

Drawer, the person or entity who makes the cheque. Payee, the recipient of the money. Drawee, the

bank or other financial institution where the cheque can be presented for payment Amount, the currency

amount

ROLE AS AN INTERN:

They taught me how to verify all details presented in customer cheque. I also learned about how to verify the

customer signature in cheque and in computer while proceeding for the cheque transaction.

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VI. CLEARING HOUSE AND CHEQUENUMBER:

The clearing house is one were all the bank cheques and outside account holder cheques‘ will be coming .A

clearing house acts as an intermediary between a buyer and seller and seeks to ensure that the process from

trade inception to settlement is smooth. Its main role is to make certain that the buyer and seller honor their

contract obligations. Responsibilities include settling trading accounts, clearing trades, collecting and

maintaining margin monies, regulating delivery of the bought/sold instrument, and reporting trading data.

Clearing houses act as third parties to all futures and options contracts, as buyers to every clearing member

seller and as sellers to every clearing member buyer. In acting as the middleman, a clearing house provides the

security and efficiency that is integral for financial market stability. To mitigate default risk, clearing houses

impose margin (initial and maintenance) requirements. The clearing house enters the picture after a buyer and

seller have executed a trade. Its role is to consolidate the steps that lead to settlement of the transaction. In

acting as the middleman, a clearing house provides the security and efficiency that is integral for financial

market stability.

The first 6 digits written between ||‘XXXXXX||‘ represents the Cheque Number. The next 9 numbers

after this (before the symbol : ) represent the MICR code. MICR is Magnetic Ink Character Recognition. This

MICR code helps the bank to identify the bank and the branch that has issued the cheque. Basically banks use

a cheque reading machine which identifies this bank and branch code to sort the cheques faster. The 9 digits of

the MICR code can be broken into 3 parts namely.

1. CITY CODE: The first 3 digits represent the city code. It is the same as the pin code of the city. (For

example 600 represents Chennai, 500 represents Hyderabad and soon.)

2. BANK CODE: The next three digits represent the bank code. (For example 240 for HDFC bank, 002 for

SBI etc.)

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 3. BRANCH CODE: the last three represents the branch code.

The next 6 digits after the MICR code represent a portion of the account number. Finally the last two digits

represent the Transaction ID. This indicates whether the cheque is a local cheque or it is payable at par cheque.

However, the CBS (Core Banking System) has now been established at all banks so the cheques issued after

the introduction of CBS are usually payable at par cheques only. The numbers at the bottom of the cheque are

written in a different font style with a special ink that contains magnetic material so that it can be recognized

by Magnetic Character Ink-Reader.

ROLE AS AN INTERN:

They taught how the cheque is been cleared and proceeded for transaction and I also learned how the different

types of cheques like savings bank cheque, current account cheque, overdraft cheque are allotted to respective

sections.

VII. SELF HELP GROUP(SHG) AND MICRCODE:

A self-help group (SHG) is a financial intermediary committee usually composed of 10–20 local women or

men. Most self-help groups are located in India, though SHGs can be found in other countries, especially in

South Asia and Southeast Asia. SHG is nothing but a group of people who are on daily wages, they form a

group and from that group one person collects the money and gives the money to the person who is in need.

Members also make small regular savings contributions over a few months until there is enough money in the

group to begin lending. Funds may then be lent back to the members or to others in the village for any

purpose. In India, many SHGs are 'linked' to banks for the delivery of micro-credit. Self-help groups are

started by -governmental organizations (GO) that generally have broad anti-poverty agendas. Self-help groups

are seen as instruments for goals including empowering women, developing leadership abilities among poor

and the needy people, increasing school enrolments and improving nutrition and the use of birth control. In

countries like India, SHGs bridge the gap between high-caste & low-caste people/citizens.

40
 Financial intermediation is generally seen more as an entry point to these other goals, rather than as a primary

objective. This can hinder their development as sources of village capital, as well as their efforts to aggregate

locally controlled pools of capital through federation, as was historically accomplished by credit unions. There

are both minimum and maximum numbers are restricted in the group.

Magnetic ink character recognition code, known in short as MICR code, is a character

recognition technology used mainly by the banking industry to streamline the processing and clearance of

cheques and other documents. MICR encoding, called the MICR line, is at the bottom of cheques and other

vouchers and typically includes the document-type indicator, bank code, bank account number, cheque

number, cheque amount (usually added after a cheque is presented for payment), and a control indicator. The

format for the bank code and bank account number is country-specific.

The technology allows MICR readers to scan and read the information directly into a data-collection

device. Unlike barcode and similar technologies, MICR characters can be read easily by humans. MICR

encoded documents can be processed much faster and more accurately than conventional OCR encoded

documents. MICR characters are printed on documents in either of the MICR fonts. The ink used in the

printing is magnetisable (commonly known as magnetic) ink or toner, usually containing iron oxide. The

document is passed through a MICR reader. The ink is first magnetized. Then the characters are passed over a

MICR reader head, a device similar to the playback head of a tape recorder. As each character passes over the

head it produces a unique waveform that can be easily identified by the system.

ROLE AS AN INTERN:

They taught me how the self-help groups are formed and I have filled some of the self help group

forms. If any documents are not attached I say the customer to bring the documents what they have missed.

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VIII. AUTOMATIC TELLERMACHINE:

An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic

transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can

access most ATMs. There are two primary types of ATMs. Basic units only allow customers to withdraw cash

and receive updated account balances. The more complex machines accept deposits, facilitate line-of-credit

payments, transfers, and report account information. To access the advanced features of the complex units, a

user must be an account holder at the bank that operates the machine. ATMs require consumers to use a plastic

card—either a bank debit card or a credit card—to complete a transaction. Consumers are authenticated by a

personal identification number (PIN) before they can execute any transactions

Many cards come with a chip, which transmits data from the card to the machine. These work in the

same fashion as a bar code that is scanned by a code reader. Banks also own ATMs with this intent, but in

addition, the convenience of an ATM is a service that banks use to attract clients. ATMs also take some of the

customer service burdens from bank tellers, saving banks money in payroll costs. An automated teller

machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to

perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account

information, at any time and without the need for direct interaction with bank staff.

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ROLE AS AN INTERN:

They taught me how to record the ATM card entry in the ATM ledger book of the customer.

IX. VOUCHERS:

A document which can be used as proof that a monetary transaction has occurred between two parties. In

business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a

transaction, acting as a receipt, or indicating that an invoice has been approved for payment. A document

that serves as an evidence for a bank transaction is called a Voucher.

It is not the appearance of it that matters it just needs to act as an evidence of a transaction. When a

transaction is entered, the evidence of that transaction is also confirmed. A deposit slip is a form supplied by

a bank for a depositor to fill out, designed to document in categories the items included in the deposit

transaction. The categories include type of item, and if it is a cheque, where it is from such as a local bank or

a state if the bank is not local. The teller keeps the deposit slip along with the deposit (cash and cheques), and

provides the depositor with a receipt. They are filled in a store and not a bank, so it is very convenient in

paying. They also are a means of transport of money.

ROLE AS AN INTERN:

They have taught me how to allocate the vouchers. I have arranged all of the vouchers according to the

transaction made by the bank.

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FUNCTIONS OF PRIMARY AGRICULTURAL CREDIT SOCIETY:

1. It promotes economic interest of members in accordance with the co-operative principle.

2. It provides short term and medium term loans.

3. It promotes savings habits among members.

4. It supplies agricultural inputs like fertilizers, seeds, insecticides, and implements.

5. It provides marketing facilities for the sale of agricultural products.

6. It supplies domestic products requirements such as sugar, kerosene etc.

MANAGEMENT, MEMBERSHIP AND SHARE CAPITAL OF PACS:

The general body elects a managing committee which consists of 5 to 9 members and elects a president,

secretary, and treasurer to look after the day today functioning of the society. All the office bearers render

honorary service. The RBI has given a directive to appoint a full time paid secretary to maintain the accounts

for each society. All agriculturists, agricultural labourers, artisans and small traders in the village can become

member of the society. PACS issue ordinary shares of small value depending upon the particular society .i.e.

Rs.10 and Rs .50 each to their members. The ownership of shares decides the right and obligations of the

holder to the society. Share capital forms an important form or part of the working capital. Members

borrowing capacities were determined by the number of shares held by them. Initially, societies were form

with unlimited liability. The All India Rural Credit Review Committee pointed out that unlimited liability

operates as a restraints on the willingness of the society to liberalize its loan policies, to admit new members

and to extend its area of operation. Besides, it hinders the society to receive contribution from the State

government, whose liability inevitably has to be limited. In view of these reasons, the societies were formed

with limited liability and existing societies were converted into limited liability societies. To make all Primary

Agricultural Society viable and ensure adequate and timely flow of co-operative credit to the rural areas the

RBI,incollaborationwithStateGovernment‘shadbeentakingaseriesofstepstostrengthenthePACSand

44
 to correct regional imbalances in cooperative development. These efforts are being intensified by providing

larger funds to weak societies to write off their losses, bad debts and overdue.

FINDINGS:

1. Rural credit is mainly focused on the agro sector and PACS plays a major role in rural finance.

2. The society provides only short-term and medium-term loan.

3. It supplies short-term credit on the personal security of the borrowers , while medium –term credit is given

by charge on their immovable assets.

4. The society provides loans only relate to agricultural credit to farmers.

5. Deposit mobilization in society is less. Because of lack of awareness among the people about the different

schemes of the society.

6. The members deposit money for the purpose of compulsion made by banker to open account.

7. The amount of loan distributed to members were in inadequate time.

8. Use of computer is less in these societies.

SUGGESTIONS:

1. The society should provide long-term loan also to farmers to meet their financial requirements.

2. As society provide loans only related to agricultural credit to farmers it is suggested that it should also

provide other types of loans so that it can help the farmers and maintain good standard of living.

3. To improve the deposit mobilization, the society should conduct awareness programs from time to time.

This will popularize the different schemes of the society and there by attract new customers and educating the

farmers relating to different services provided by society.

45
 4. To help farmers the society should adopt easy procedures for distributing and recovering the loan from

farmers.

5. To develop self employment in the rural areas the society should provide training to the rural unemployed

people.

6. The adequate amount of loan should be distributed to farmers at adequate time.

7. Political interference in lending operation should be eliminated as per as possible.

8.For early retrieval of information use of computer should also be introduced for maintaining techanized

accounting system safely.

9. Society should educate the farmers relating to different services provided by society.

10. The society should provide quality necessary agricultural items at reasonable price to the farmers.

11. The staff member of society should maintain good co-operative relationship with members by providing

all information to farmers.

LEARING EXPERIENCE

During this pandemic situation they allow one month to work in their bank, In these one month of my

internship program, I learned and did many works and gained practical knowledge in the bank. I got better

idea about the working process involved in banking, it includes works such as arranging the voucher in the end

of the day, helping the customer by filling the various forms and allocated the various forms accordingly. I

also came to known how the interest is been calculated for the agricultural loan.

One of the most challenging and best part was to be Polite with the various customer is the major part

in the banking section. I gained more practical exposure in the field of banking. I not only was trained to

allocate the vouchers but also got to how the customer information are in fed in the computer. I also

46
known about the ledger books maintained in the bank and also gained the knowledge. I learned about the lots of

interests rates provided by the bank.

CONCLUSION:

I thank kallakurichi PACS for giving me this opportunity for learning. From my internship I learned about the

various types of deposits, loans and services which are offered by the bank , and I came to known about the

basic functioning and the knowledge of the bank and the problems faced by the bankers.

I had experienced the banking services and got the practical knowledge about the banking and I learnt the

interest calculations for the bank loan and learnt the interest for the various deposits such as saving bank,

recurring deposits, fixed deposits. From this internship program, I learnt that how the bank employees are

polite with their customer.

This internship is very useful for me to learn day to day banking transactions and activities in the PACS.

47