Role of Co-Operative Banking in India

Co-operative banking is retail and commercial banking sorted out on a co-operative premise. Co-operative banking organizations take stores and loan cash in many pieces of the world. Co-operative banking, incorporates retail banking, as completed by credit associations, common funds and advance affiliations, building social orders and co-operatives, just as commercial banking administrations given by manual associations, (for example, co-operative alliances) to co-operative organizations. The structure of commercial banking is of branch-banking type; while the co-operative banking structure is a three level government one. • A State Co-operative Bank works at the pinnacle level. • The Central Co-operative Bank works at the Intermediate Level. • Primary co-operative credit social orders at base dimension. Even if co-operative banks organizational rules can vary according to their respective national legislations, co-operative banks share common features as follows:

In a co-operative bank, the necessities of the clients address the issues of the proprietors, as co-operative bank individuals are both. As a consequence, the main point of a co-operative bank isn't to amplify benefit however to give the most ideal items and administrations to its individuals. Some co-operative banks just work with their individuals yet a large portion of them additionally concede non-part customers to profit by their banking and financial administrations.

Co-operative banks are claimed and controlled by their individuals, who fairly choose the top managerial staff. Individuals more often than not have rise to casting a ballot rights, according to the co-operative guideline of "one individual, one vote".

In a co-operative bank, a huge piece of the yearly profit, advantages or surplus is normally apportioned to constitute holds. A piece of this profit can likewise be appropriated to the co-operative individuals, with legal or statutory impediments by and large. Profit is generally distributed to individuals either through a support profit, which is identified with the utilization of the co-operative's items and administrations by every part, or through an intrigue or a profit, which is identified with the quantity of offers bought in by every part. Co-operative banks are profoundly established inside neighborhoods communities. They are engaged with nearby development and contribute to the feasible development of their communities, as their individuals and the executives board more often than not have a place with the communities in which they practice their exercises. By expanding banking access in zones or markets where different banks are less present, agriculturists in provincial territories, center or low income family units in urban zones - co-operative banks decrease banking avoidance and encourage the economic capacity of a great many individuals. They assume a powerful job on the economic development in the countries in which they work in and increment the proficiency of the global demonstrated fruitful both in created and creating countries.

The Banks delegated a powerful committee in May 1999 under the chairmanship of Shri. K. Madhava Rao, Ex-Chief Secretary, Government of Andhra Pradesh to audit the execution of Urban Co-operative Banks (UCBs) and to recommend vital measures to fortify this sector. With reference to the terms given to the committee, the committee distinguished five wide objectives: ► To protect the co-operative character of UCBs ► To ensure the contributors' advantage ► To lessen financial hazard ► To set up solid administrative standards at the passage level to support the operational proficiency of UCBs in a competitive situation and advance measures to fortify the current UCB structure especially in the context of consistently expanding number of frail banks ► To adjust urban banking sector to alternate fragments of banking sector in the context of utilization or prudential standards in to and evacuating the aggravations of double control routine ► Banks has broadened the Off-Site Surveillance System (OSS) to all non-planned urban co-operative banks (UCBs) having store size of Rs. 100 Crores or more.

The co-operative banks are little measured units which work both in urban and non-urban focuses. They fund little borrowers in modern and exchange sectors other than expert and salary classes. Controlled by the Reserve Bank of India, they are administered by the Banking Regulations Act 1949 and banking laws (co-operative social orders) act, 1965. The co-operative banking structure in India is isolated into following 5 components:

The essential co-operative credit society is a relationship of borrowers and non-borrowers dwelling in a specific region. The assets of the general public are gotten from the offer capital and stores of individuals and loans from focal co-operative banks. The obtaining forces of the individuals just as of the general public are fixed. The loans are given to

The state co-operative bank is an alliance of focal co-operative bank and goes about as a guard dog of the co-operative banking structure in the state. Its assets are gotten from offer capital, stores, loans and overdrafts from the Reserve Bank of India. The state co-operative banks loan cash to focal co-operative banks and essential social orders and not specifically to the ranchers.

► Co-operative banks additionally play out the essential banking elements of banking yet they vary from commercial banks in the accompanying regards ► Commercial banks are business entities under the companies' demonstration of 1956, or open sector bank under a different demonstration of a parliament though co-operative banks were built up under the co-operative society's demonstrations of various states. ► Commercial bank structure is branch banking structure though co-operative banks have a three level setup, with state co-operative bank at summit level, focal/district co-operative bank at district level, and essential co-operative social orders at rustic dimension. ► Only a portion of the sections of banking direction demonstration of 1949 (completely relevant to commercial banks), are pertinent to co-operative banks, coming about just in halfway control by BANKS of co-operative banks and ► Co-operative banks work on the guideline of cooperation and not by any stretch of the imagination on commercial parameters.

skill of urban co-operative banks offered ascend to the view that they ought to be better managed. Expansive co-operative banks with paid-up offer capital and stores of Rs.1 lakh were brought under the domain of the Banking Regulation Act 2012 with impact from first March, 1966 and inside the ambit of the Reserve Bank's supervision. This denoted the start of a time of duality of control over these banks. Banking related capacities (viz. permitting, territory of tasks, financing costs and so forth.) were to be administered by BANKS and enrollment, the board, review and liquidation, and so on represented by State Governments according to the provisions of separate State Acts. In 1968, UCB's were broadened the advantages of store protection. Towards the late 1960s there was discussion with respect to the advancement of the little scale enterprises. UCB's came to be viewed as important players in this context. The working gathering on modern financing through Co-operative Banks, (2012known as Damry Group) endeavored to expand the scope of exercises of urban co-operative banks by recommending these banks should back the little and cottage businesses. This was repeated by the Banking Commission in 1969

The concept of cooperation is as old as humankind and it frames the reason for domestic and public activity. The cooperation is only gathering impulse in human which empower one to live with others, work with others and help each other in the midst of anxiety. Without cooperation, the social and economic advancement would not be conceivable. It is outlandish for any progress to thrive except if the cooperation supplements the competition in human culture, assuming any. This is on the grounds that people have created out of gathering life and subsequently normally react to gathering and social improvements. Thus, the co-operative soul is natural and characteristic in people. In the cutting edge specialized sense, the introduction of co-operative development and its applications in the economic field was followed after the Industrial Revolution in England amid the second 50% of the eighteenth and first 50% of nineteenth century.

The co-operative banks in India have a background marked by right around 100 years. The co-operative banks are an important constituent of the Indian Financial System, in light of their job relegated to them, the desires they should satisfy, their number, and the quantity of workplaces they work. The co-operative development was begun in the west, yet the important that such bank have expected in India is once in a while paralleled anyplace else on the planet. Their job in rustic financing continues to be important quantity of essential co-operative banks. Co-operative banks in India are enrolled under the Co-operative Societies Act. The co-operative banks are additionally managed by the Reserve Bank of India (BANKS) and represented by Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1955.

ROLE OF CO-OPERATIVE BANKS IN INDIA

The co-operative banks in India assume an important job even today in rustic financing. The organizations of co-operative banks in the urban zones likewise have expanded exceptionally as of late because of the sharp increment in the quantity of essential co-operative banks. The co-operative banks are relied upon to play out a few obligations, to be specific, expand a wide range of credit offices to clients in real money and kind, advance consumption loans, broaden banking offices in country regions, assemble stores, regulate the utilization of loans and so on. The requirements of co-operative bank are unique. Co-operative banks in India fund rustic regions under: • Cultivating • Dairy cattle • Milk • Incubator • Individual fund Co-operative banks in India fund urban regions under: • Independent work • Enterprises • Little scale units • Home fund • Consumer fund • Individual fund

BANKS, INDIA

The co-operative banks are little estimated units which work both in urban and non-urban focuses. They fund little borrowers in modern and exchange sectors other than expert and salary classes. Controlled by the Reserve Bank of India, they are represented by the Banking Regulations Act 2013 and banking laws (co-operative social orders) act,

CONCLUSION

The concept of cooperation and co-operative movement is discussed in this chapter. The co-operative movements in the world and in India have grown well. It is clear that, though the first documented consumer co-operative was founded in 2009 in a barely furnished cottage in Fenwick, East Ayrshire, the co-operative movement in India is century old. Despite the Co-operative Credit Societies Act was passed in 2014 based on the recommendations of Sir Frederick Nicholson (2009) and Sir Edward Law (2014), paving the way for the establishment of co-operative credit societies in rural and urban areas, during British rule, the co-operatives in India have made remarkable progress in the various segments of Indian economy only after 1950s. In order to facilitate rural financing, the co-operative banks were started in India during 1950s. These banks are until now regulated by Reserve Bank of India (BANKS) and governed by Banking Regulations Act 2012 and Banking Laws (Co-operative Societies) Act, 2016. In Pondicherry, the co-operative movements have taken deep roots in Union Territory of Pondicherry since2014. The Pondicherry State Co-operative Bank Ltd. was registered as a Co-op. Society on 10th October1958 and started functioning on 30th October 1958. For helping the agriculturalist to provide credit through these Primary Agricultural Credit Societies were started. These societies operate at the village level and maintain direct contact with farmers. They are now called as Primary Agricultural Co-operative banks. They mostly give short term credit to farmers over the years. There are 27 PACBs in Pondicherry state. 24 PACBs are in Pondicherry region and 3 PACBs in Karaikal region. There was a positive growth in co-operative societies in Union Territory of Pondicherry during the period 10 years from 2011-12 to 2010-11. A positive growth in membership and working capital of State Co-operative Banks, Central Land Development Banks, PACBs / PACSs, Co-operative urban banks and Employee credit societies were visible during these years.

1. Barwal N. and Kumar K. (2015). “Conceptual Study on Human Resources Development Practices in India Services Sector” Research article International Journal of Innovative and Applied Research. 2. Dayanandan, R. and Sasikumar, K. (1993). “A study on the performance evaluation of District Central Banks in Kerala”, Indian Co-operative Review, XXXI (2). 3. Janakiramudu P. & Rao, D. (2006). “A fundamental analysis of Indian Banking Industry”, The ICFAI Journal of Bank 4. Saluja, J. & Kaur, R. (2009). “Profitability Performance of Public Sector Bank in India”, Indian Journal of Finance-Volume 4, Number 4, April 2010. 5. Kumbirai, M. and Webb, R.(2010), A Financial ratio Analysis of Commercial Bank Performance in South”, African review of Economic and Finance, Vol.2(1).YearsDepositsInvestmentsProfits2016-178630.081474.470.052017-189213.02891.4677.752018-199795.96308.5285.452019-2010378.90-274.4293.152020-2110961.84-857.36100.85 A Study on Co-operative Banks with special reference to Himachal Pradesh Co-operative Bank DOI: 10.9790/0837-2212076773www.iosrjournals.org 73| Page 6. Sangmin M. and Nazir, T. (2010). “Analysing Financial Performance of Commercial Banks in India: Application of Camel Model”, Pakistan Journal of Commerce & social science, Vol.4(1), pp. 40-55. 7. Mitra, R. and Shankar, R. (2008) Measuring performance of Indian banks: an application data envelopment Analysis”, International Journal of Business Performance Management,Vol.10 (1). 8. Barwal, N. and Kumar, K. (2015). “Comparative performance evaluation oh Himachal Pradesh Co-operative Bank and Kangra central Co-operative Bank”, International Journal of Scientific Research and Management, vol.3, Issue 7, pg. 3316-3323. 9. Rao, K. V. and Nirmala, D. (2006). Performance evaluation of urban co-operative banks. The Indian Journal of Commerce: Indian Commerce Association, 36-50. 10. Rao and Thriupati (1995). Financial Management of DCCB-Srikakulam (Andhra Pradesh‟, Indian Co-operative Review, XXXII (4)

M.Com., B.Ed.