ROLE OF BANKS IN INDIAN CO-OPERATIVE MOVEMENT

ROLE OF RBI  IN CO-OPERATIVE MOVEMENT

1. Prior to 1982 RBI provided finance and guidance for the development of co-operative movement through Agricultural Development Department. From 1982 this work was taken by NABARD.
2. RBI convened a conference of people connected in co-operative movement in 1951 and made some important recommendations.

RBI performed following functions:

1.         Improved the operational efficiency of co-operative financing agencies.

2.         Helped the state government in reorganizing primary agricultural credit societies.

3.         Build up a co-operative credit structure in qualitative and quantitative terms.

4.         Made policies to remove regional imbalance and extend more credits to small and economically backward farmers.

ROLE OF SBI  IN CO-OPERATIVE MOVEMENT

1. Provides finance to marketing and processing societies at 7% rate of interest.

2. Provide loans to consumer co-operative for working capital.

3. Grant advances against raw material and finished goods to industrial co ops.

4. Provide remittance facilities to co-operatives within certain limits.

5. Provide finance for debentures for Land Development Banks.

6. Provides overdraft facilities to Central Co-operative Banks at concessional rate.

7. Maintain close coordination between RBI’s Agricultural Development Department.