CO- OPeRATIVES &RURAL

MARKETS
A PROJECT ON ROLE OF FINANCIAL
INSTITUTION IN AGRICULTURAL
Marketing

SUBMITTED BY-SIDDHESH
SHETYE
VRUSHALI Tare
Pawan shroff
Gaurav suvarna

UNDER THE GUIDANCE OF

PROF.MS.SHILPA MORE
 WHAT IS CO-OPERATION ?

“ Co-operation is a form of organisation ,

wherein persons voluntarily associate
together as human being on the basis of
equality , for the promotion of the
economic interest of themselves. “
WHAT IS CO-OPERATIVE ?
A co-operative defined as a business
owned and controlled equally by the
people who use its services or by the
people who work there.
 PRINCIPLES OF CO-OPERATION
• Voluntary and open membership .
• Democratic control .
• Limited interest on share capital .
• Equitable distribution of surplus .
• Self-help and mutual-help .
• Co-operative education .
• Co-operation among co-operatives .

-By International Alliance

 OBJECTIVES OF CO-OPERATIVE .

• Removal of Middlemen .
• Removal of Capitalism Evils .
• Increasing the weaker section economic status .
• Abolition of Social Inequalities .
• Neutrality in Religion and Politics .
• In creasing the Prosperity of the community .
• Raising the Moral Standards of its Members .
• Development of co-operative Life .
 ROLE OF FINANCIAL INSTITUTIONS
IN AGRICULTURAL MARKETING .
• There are following types of financial institution
in rural areas .
1. Commercial Banks.
2. Co-operatives Banks
3. NABARD
4. Regional Rural Banks
 TYPES OF CREDIT .
1) Short-term Loans .

2)Medium-term Loans .

3)Long-term Loans .
 RURAL CREDIT INSTITUTION

1) National Bank for Agriculture and Rural Development

( NABARD)
2) Schedule Commercial Banks , both nationalized and
private banks , through their network of branches .
3) State Cooperative Banks ( SCB ) through their district
central Cooperatives banks ( DCCBs) and Primary
Agriculture Credit Cooperative Societies (PACs) and
other primary societies .
4) State Cooperative Agriculture and Rural Development
Banks ( SCARDBs ) through their district branches and
primary co-operative. Agriculture and Rural
Development Banks ( PCARDBs )
5) Regional Rural Banks ( RRBs ) and their branches .
6) Local areas banks.
 National Bank for Agriculture and Rural
Development (NABARD)
• Function of NABARD

1)It works as an apex body to look after the credit

requirements of the rural section .

2)It has authority to oversee the functioning of the co-

operative sector

3)It provides short term credit to state co-operative

banks for seasonal agriculture operation

4)It provides medium term credit to state co-operative

banks RRBs for approved agricultural purpose .
5) It provides medium of long term
credit for investment in agriculture
6)It provides long term assistance in form
of loans to state governments
7)It has been entrusted with the
responsibility of inspecting district
and state co-operative banks and
RRBs . It also the inspection of state
land development banks and other
federation is undertaken on voluntary
basis.
8)It maintains a r & d fund to be used to
promote research in agriculture and
rural development .
 STATE CO-OPERATIVES BANKS
• They are eligible to offer only short-term loans.

• The SCBs operate at the state level with branches within

the state and they carry on all function of commercial
banks .

• The shareholders and member of SCBs are the district

central co-operative banks (DCCBs) .

• These banks operate at district level .Primary societies

,which are engaged in distributing credit to agriculture
called as primary agriculture credit co-operative ( PACs) .
 STATE CO-OPERATIVE
AGRICULTURAL AND RURAL
DEVELOPMENT BANKS (SCARDSBs)
• They were earlier known as state land
development banks.

• They provide medium-term and long- term loan .

• 19 such banks with 1219 branches spread over the

district are financing primary co-operative
agricultural and rural development banks located
at the tehasil level .
 REGIONAL RURAL BANKS (RRBs )
• They are called as grameen banks .

• There are 196 RRBs in the country promoted by

commercial banks with the objective of catering to a very
limited jurisdiction of one or two district and they are
farmer friendly .

• They are allowed to open branches within their area of

operation and currently there are six metropolitan , 348
urban , 1875 semi-urban and 12,084 rural branches .
 LOCAL AREA BANKS
• The establishment of local area banks is relatively new
and as yet only few banks are functioning in the country.

• The primary idea is to encourage big money lenders and

other informal agencies them within an institutional
structure .

• The funds available for credit distribution among the

institutional agencies was not sufficient to meet the total
requirements of the rural areas .

• So , these , non-institutional agencies have been operating

not only to fill the lacuna, goods , for social function , etc