INTRODUCTION

This report is a short description based on 14 days internship work carried out at Primary
Agricultural Credit Co-operative Society in xxxxx. The work was mainly concentrated on the
account preparation of Primary Agricultural Credit Co-operative Society.
According to the Kerala State Co-operative Bank, Primary Agricultural Credit Co-operative
Society came into exitance from 10/05/2006.

Co-operative movement is the largest socio-economic movement in the world.

It has contributed significantly to the alleviation of poverty, creation of productive employment
as well as the enhancement of social integration in the country. Co-operative sector is mainly
concerned with agricultural sector is mainly agricultural credit, marketing of agricultural
produce and distribution of fertilizers and pesticides and other essential commodities. Co-
operative Societies form an integral part of the rural system in India. Co-operative Society is
an organisation and came into exitance with the enactment of Agricultural Co-operative Credit
Societies Act 1904. They provide wide range of banking and financial services to the rural
people.

The present study is mainly confined to Primary Agricultural Credit Co-operative Society
functioning in xxxxxxi. It is a primary level Agricultural Co-operative Society. This Co-
operative Society is operated jointly by its members. They work together to achieve the goals
by mutual help. In all major forms of business organisations, the ultimate object is to earn
profit. But, Co-operative society aims at rendering service to its members. This enterprise
formed for the weaker sections of safeguard their own economic interest by eliminating
middleman.

OBJECTIVE OF THE STUDY

1. To study the performance of Primary Agricultural Credit Co-operative Society.
2. To identify various deposits, loans and MDS of the bank.
PRIMARY AGRICULTURAL CREDIT CO-
OPERATIVE SOCIETY
The Primary Agricultural Credit Co-operative Society established 10th may 2006. The
ultimate responsibility for the entire management of the bank is vested with the Board of
directors. The secretary is the chief executive of the society and is appointed by managing
committee with the approval of registrar of Co-operative Society. In a Co-operative Society
the membership is not limited, so it is not possible to manage the bank with member owners.
The president has the overall control of the society.

The main objective of Primary Agricultural Credit Co-operative Society

 To promote economic interest if its members and encourage thrift, savings and self-
help amongst them.
 To advance loans to its members.
 To accept deposits from members and non-members.

STRATEGIC VISION
The Co-operative movement was started in India which passing of the Co-operative
Credit Society Act 1904. Important strategic vision of this act is encouraged thrift, self-help
and Co-operation amongst agriculturist, artisans and persons limited means. Another vision of
this act is to providing finance at low rate of interest to agriculturists who were changed high
rate of interest by the money lenders. The basic idea behind a Co-operative organisation is self-
help and mutual help cooperative organisation is operated jointly by its members. They work
together to achieve the goals by mutual help.

MISSION
The mission of primary agricultural Credit Co-operative is to remain as strong, sound
and leading organisation in the Co-operative Credit structure and to be the back born for the
rural financial sector of the locality. Through the efficient management of the organisation, it
would aspire to function as a professional profitable and socially responsible organisation
ensuring the best service to its stakeholders and customers by providing good value for their
money thereby ensure accelerated development of the rural population.

MANAGEMENT
The ultimate responsibility for the entire management of the xxxxxx
Panchayath Primary Agricultural Credit Co-operative Society is vested with the Board of
Directors. The Board of Directors can control, supervises and co-ordinates the activities of the
society. The members attending the board meeting shall be held at least once in a year.

The managing committee carries out of the day-to-day business. The managing committee of
the society consists of 11 members and not less than 3 representatives of women members. 1
representative of SC/ST members, 1 representative of depositor with minimum deposit of
10000/-. The term of managing committee is five years.

The secretary is the chief executive of the society and is appointed by the managing committee
with the approval of registrar of the Co-operative Society. If any vacancies arise in the
managing committee the election will be conducted to fill the vacancy as per the Co-operative
Societies Act and rules. At any time, the board meeting can be held according to its needs.
PROFILE OF PRIMARY AGRICULTURAL CREDIT CO-
OPERATIVE SOCIETY

Name Primary Agricultural Credit Co-operative Society

Address xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxx

Phone number 0xxxxxxxxx

Bank number xxxxx

Area of xxxxxxxx
operation

Establishment 10/05/2006

Secretary xxxxxxx

President xxxxxxxxxxxxx
ORGANISATIONAL CHART
POWERS AND DUTIES OF MANAGING COMMITTEE
The following are the powers and duties of the managing committee
• To admit and to allocate shares to them
• To election of office bearers
• Consideration of audit, inspection and equity reports
• To constitute sub committees.
• To raise local deposits or to borrow money from Kerala State Co-operative Bank or any other
institution
• To convene board meeting.
• To control and supervise employees of the society.

PERSONS NOT QUALIFIED TO ELECT AS A DIRECTOR BOARD

MEMBER
1. Person not attained the age of 18
2. He is an insolvent
3. He is an insane
4. Make any default of sum payable to the bank

SITUATION IN WHICH A DIRECTOR BOARD MEMBER EXPELLED

FROM THE BOARD
o He is made any default o He is become an insolvent o He acts against
the interest of the bank o He is absent continuously in 4 meetings without
any specific reasons.

DUTIES AND RESPONSIBILITIES OF A SECRETARY

The following are the duties and responsibilities of a secretary
 To enter into contract with others on behalf of the society.
 To deals legal matters and arbitration cases.
 To prepare and submit periodical statements.
 To render assistance for rectification of mistakes and audit queries.
 To implement the decisions of the managing committees.
  Arrangements for obtaining for loans, recovery of loans and so on.
 The secretary usually authorized to sue or to be sued on behalf of the society.
 Correspondence3 with the registrar, members, persons and institutions.
 He is the custodian of cash, seal and all the other important records of the society.
 To render assistance to the managing committee in making policies and programmes

MEMBERSHIP
Membership is given to those who are residing in xxxxxx Panchayath.

PROCEDURE FOR GRANTING MEMBERSHIP

1. Individual who possesses landed property are eligible for membership

2. He has to attain the age of 18yeaers

3. He is resident or occupying and within the area of operation of the society.

4. Applicant cannot be adjudicated as insolvent

5. He is not a paid employee of the society or financing bank.

6. He has not been sentenced for an office other than political offence.

7. A person shall not be admitted in a credit society, if he is a member of another credit society of

the same.

The conditions for granting membership as follows,

 He has to apply for the membership in the prescribed form with prescribed fee.

 The application shall be approved by the committee.

 The person cannot exercise the right of a member until the payment of admission fee Rs 2

and subscription to the share capital of Rs 10.

DEPOSISTS
a) Fixed deposits
b) Daily collection deposits
c) Savings bank deposits
d) House savings deposits
 e) Recurring deposits
f) Current account deposits
a) Fixed deposits

Fixed deposits are deposited for a specific period. Rate of interest on these deposits
are fixed according to the length of the period for which the deposits are made. Normally, these
account holders will get high rate of interest.

b) Daily collection deposits

It means total number of real money deposits possible in one day on the platform. c)
Savings bank deposits

The bank accepts small amount by way of saving in this account and allow comparatively
high rate of interest than on current account.

d) House savings deposits

A sum of money collected in a penny bank without target. It is collected twice in a week or
once in a week by the bank staff and is deposited in the account of certain person.
e) Recurring deposits

It is intended for regular income group. Under this account deposits a certain fixed
amount for a fixed period.

f) Current account deposits

Current deposits are deposits not for specific period. It can deposits and also
withdraw money at any time as the deposits are repayable on demand.

LOANS
The bank lends loan to its members. Following are the type of loan provided by the bank.
1. Fixed deposits on loan (FDOL)
2. Business on loan (BOL)
3. Agricultural loan (AOL)
4. Mid-term on loan (MTOL)
5. Kissan cash credit (KCC)
6. Monthly deposits scheme (MDS)
7. Recurrent deposits on loan (RDOL)

1. Fixed deposits on loan

 These are loans which are provided on the guarantee of fixed deposit.

2. Business on loan
Business loan specifically intended for business purposes. It involves the creation of a debt,
which will be rapid with added interest.
3. Agricultural on loan
Agricultural loan specified intended for agricultural purposes.
4. Mid-term on loan
A loan that must be paid back between 2 to 10 years after the money is borrowed.
5. Kissan cash credit

The kissan cash credit scheme aims at providing adequate and timely credit support
from the banking system under a single window with flexi.

6. Monthly deposit scheme

These are loans which are provided on the basis of the monthly deposits
deposited in account.

7. Recurrent deposits on loan

Loans given with the guarantee of amount of recurring deposits

WORKING OF THE PRIMARY AGRICULTURAL

CREDIT CO-OPERATIVE SOCIETY
1. ISSUE OF LOANS

The society issue agricultural short-term, medium-term loans to its members. This
society is issued ordinary loans, business loans, personal loans, fixed deposits loans,
agricultural loans, monthly deposits scheme loans and kissan cash credit loans etc.

2. BANKING BUSINESS

The society mobilizes deposits from members and non-members through its banking
function. The society accepts various deposits from public just like commercial banks.

3. CONDUCTING MDS

The society conducts chits of various types in order to meet the financial needs of the
 public.
4. INDIVIDUAL MAXIMUM BORROWING POWER

The maximum power of members in the society is fixed to a maximum amount of

rupees.100000.

FUNDS
A Co-operative credit society receives funds from various of District Co-operative Bank. The
following are the important sources of its society.

A. OWNED FUNDS
1. Share capital
Share capital is one of the important internal sources of income of co-operative
societies. Each person who wants to become a member of the society is requires to pay share
money. The value of shares varies from society to society.
2. Entrance fees
Each member who joins the society is expected to pay some admission fees. This varies
from one society to another. It is the non-recurring item of receipt.

B. BORROWED FUNDS
1. Deposits
The deposits can be obtained both from the members as well as outsiders. Usually the
society receives deposits at low rate of interest and advances the money to borrowing members
at a higher rate of interest.
2. Borrowings or loans

Borrowings or loans cannot be called as a service rather than a liability on the society.
These borrowings of credit societies are maintained from District Co-operative Banks.

BOOKS KEPT BY PRIMARY AGRICULRTURAL

CREDIT CO-OPERATIVE SOCIETY

1. Cash book
2. Day book
 3. General ledger
4. Receipt and disbursement account
5. Profit and loss account
6. Balance sheet

1. Cash book
Cash book is a special type of book that is only concerned with the recording of
cash transactions. It performs the dual role of both journal and a ledger for all the cash
transactions taking place in a bank.
2. Day book
Day book is a book of entries in a day book, all types of each cash or non-cash
transactions are recorded, according to the principle of double entry system.
3. General ledger

General ledger in simple language is grouping of transactions of similar nature.

An organisation has multiple transactions in a day. Every transaction leads to two
entries as per the double entry system to book keeping. These entries are then posted
in respective accounts called general ledgers.

4. Receipt and disbursement account

A receipt and disbursement account is the summary of a day book and prepared

for a specified period. Receipt and disbursement accounts prepared from the totals of

receipt and disbursement sides of the ledger accounts. It is just like a balance sheet.

5. Profit and loss account

A profit and loss account, is a record of all the income and expenses of the bank

during a particular period of time. Such a period can be the entire financial year, an

interim period like half financial period, or a quarter. Every bank needs to maintain a

profit and loss account to get their correct financial position at the end of the required

period.
 6. Balance sheet
A balance sheet is a financial record of its liabilities, assets and shareholder’s
equity at a specific date. It helps evaluate a capital structure and also calculates the rate
of returns for its investors.

PROBLEMS
Co-operative societies are faced with many serious problems. These problems need

immediate solution to serve the purpose for which it is set up. The main purpose of the society

is to give adequate loans at the apt time so as to eliminate the role played by money lenders.

Some of the main problems are the following.

1. Over Dues

The borrower who ones take the loans does not repay the sum in time. This creates the serious
problem of overdue which hinders the work of society and the movement as whole.

2. Undependable loan

The agricultural borrower fells that loan from society are undependable. In the first place one
does know whether loan will be sanctioned at all, secondary if sanctioned what will be available in the
right time. If the societies are not able to provide adequate credit to the farmer’s they will naturally be
driven to the money lenders.
CONCLUSION
During the 14 days of internship at Primary Agricultural Credit Co-operative Society
xxxxxxxxxxx To aware the performance of the bank. Primary agricultural Credit Co-operative
Society made good effort from the beginning realizing the dreams of the members, the rural
cooperative banking movement aims at playing a vital role in improving the socio-economic
situations of the rural people. Since the bank provides several financial assistances to the
members.

The main objective of the primary agricultural credit co-operative society is to provides short
term, medium term and other types of loans to members. It is observed that the short term and
medium terms loans and found that one of the major factors influencing the nonrepayment of
loan was settlement of old debt. The Primary Agricultural Credit Co-operative Society also
accepts deposits from the members.