Professional Documents
Culture Documents
DEVELOPMENT
CONTENTS
SL NO.
1.
2.
3.
4.
CHAPTER
INTRODUCTION
INDIA-KERALA COMPARISON
SURVEY ANALYSIS
CONCLUSION
PAGE NO.
1 - 11
12 - 29
30 - 39
40 - 42
List of Table
SL
NO
TABLE NO.
CONTENTS
PAGE
No.
2.1
3.1
Credit Institutions
21
31
3.2
3.3
3.4
Co-operative Bank
Reasons for non-repayment
3.5
32
operative Bank
33
34
35
3.6
3.7
3.8
Details of Loanees
36
Details of Loans
37
38
3.9
38
Loanees
List of profitability and NonProfitability of Non- Agriculture
11
3.10
Loanees
39
Introduction
A co-operative Bank is a financial entity which belongs to
its members, who are at the same time owners and the
customers of their bank. Co-operative banks are often created by
persons belonging to the same local or professional community
sharing in a common interest. Co-operative banks generally
provide their members with a wide range of banking and financial
service. (Loans, deposits, banking accounts etc)
Co-operative banks differ from stockholders, banks by their
organization, their goals, their values and their governance. In
most countries they are supervised and controlled by banking
authorities and have to respect prudential banking regulations,
which put them at a level of playing field with stockholders banks.
Depending on countries, this control and Supervision can
be implemented directly by state entities or delegated to a cooperative federation or central body, even if their organizational
rules can vary according to their respective national legislations.
6
Co- operative Banks and Rural Development
the
purchase
of
cattle,
fodder,
pesticides etc.
7
Co- operative Banks and Rural Development
fertilizers,
membership
of
society
as
well
as
8
Co- operative Banks and Rural Development
9
Co- operative Banks and Rural Development
10
Co- operative Banks and Rural Development
11
Co- operative Banks and Rural Development
Methodology
12
Co- operative Banks and Rural Development
The present study is an attempt to examine how cooperative banks promote rural development. The study is both
descriptive and analytical based on primary and secondary
sources. The present study conducted in rural areas of
sasthamcotta panchayath. The samples were selected from cooperative bank, sasthamcotta and from some respondents also
from the specified locality. A structural interview was prepared for
relevant information collection from the peoples who are the
debtors of the co-operative banks.
The secondary data were collected from records, Journals,
previous data source of the banking systems by Mithani and
Gorden.
Chapterisation
13
Co- operative Banks and Rural Development
The study was conducted to examine the role of cooperative banks for rural development. The first chapter includes
Introduction, Objectives, Methodology, Review of literature and
limitations of the study and the second chapter is the comparison
of India-Kerala. Third chapter is true analysis of survey and the
final and fourth chapter includes findings suggestions and
conclusions.
Limitations
1. It is impossible to find the overall development.
2. The availed time is limited.
Review of Literature
Mithani and Gorden, Banking and Financial system point
out as the co-operative bank play an important role in the Indian
financial system, especially at the rural area. In rural finance, as a
14
Co- operative Banks and Rural Development
15
Co- operative Banks and Rural Development
16
Co- operative Banks and Rural Development
value-loaded
concept
and
hence
difficult
to
define.
The
term,
rural
development,
connotes
overall
17
Co- operative Banks and Rural Development
in
economic
development,
the
neo-classical
18
Co- operative Banks and Rural Development
agencies,
sole
proprietorships,
partnerships,
19
Co- operative Banks and Rural Development
20
Co- operative Banks and Rural Development
21
Co- operative Banks and Rural Development
Co-operative Week
ICA proposed to celebrate the International Co-operative
day on the 1st Saturday of July every year. But in India, it is
celebrated for a week. It was decided to celebrate the cooperative week from 14th November every year, since it being the
birthday of the first prime minister of our country Jawaharlal
Nehru, who was an ardent promoter of co-operation in India.
Co-operative Flag
ICA designed a co-operative flag and presented to the world. The
flag has seven rainbow colors. The executive committee of ICA
agreed the suggestion of Mr. Charles Gide, a French co-operator
and adopted a spectrum of seven colors. The seven colors
represent prosperity, harmony, peace and welfare of the people.
Nicholsons Report
In 1982, Govt. of Madras deputed Sir Federic Nicholson to probe
into the possibility of forming co-operation in India. In 1889, he
submitted his report and recommended to form agricultural credit
societies in village level on the pattern of Raiffeisen credit
22
Co- operative Banks and Rural Development
23
Co- operative Banks and Rural Development
24
Co- operative Banks and Rural Development
Short-Term structure
25Banks
State Co-operative Agricultural and Rural
Primary
Development
Co-operative
Agriculture and Rural Development Ban
Co- operative Banks and Rural Development
26
Co- operative Banks and Rural Development
27
Co- operative Banks and Rural Development
basis with regard to their religious, social and cultural life. The cooperative element in the community life in India was represented
by joint family system. The Arthasastra of Kaudilya provides
whoever stays away from any kind of co-operative undertaking
shall send his servants to carry on the work, shall have a share in
the expenditure but none in the profits
Co-operation as is understood today, as an economic
system, was born as a peaceful reaction against the mercantile
economy and Industrial Revolution which had resulted in the
concentration of wealth, mass poverty and degradation; in a word.
decay of men, Co-operation was conceived as the answer to the
injustice of capitalism and was developed as its antidote. Poorer
men saw in it a price advantage, economists a new incentive to
efficiency, and the utopian socialists a method of developing a
complete new society. The heard found that by showing a
common front they were a match for the economic carnivores
28
Co- operative Banks and Rural Development
list
of
economic
advantages
of
co-operative
29
Co- operative Banks and Rural Development
30
Co- operative Banks and Rural Development
physical
and
mental
health.
The
distinguishing
many circumstances
make
these
essential,
to
the
31
Co- operative Banks and Rural Development
32
Co- operative Banks and Rural Development
33
Co- operative Banks and Rural Development
Survey Analysis
34
Co- operative Banks and Rural Development
35
Co- operative Banks and Rural Development
Amount
5000 to 500000
5000 to 500000
Source: Survey Data
Number of loans
Period of repayment of
36
Co- operative Banks and Rural Development
600-700
loan
3 to 5 years
Long term:
200-300
6 months to 1 year
Short term:
300-400
2 to 3 years
Agricultural
Non- Agricultural
( Business purpose)
An ordinary notice
Registered Notice
ARC Filing
Award
Execution of CEP
The majority of the loaners repay the loans on correct time and
almost40% people makes default in repayment. The reasons for the
defaults are
Table 3.3
Agri loans
Non-Agriculture loans
37
Co- operative Banks and Rural Development
Diseases
Marriage
The loss of the yield
Due to natural calamities
The fall in price
Loss of business
Table 3.4
Agri products
Manufacturing products
Coconut
Coir products
Rice
Antique products
Cashew nut
Cosmetics
Vegetables
Ornaments
Seeds
Food Products etc.
38
Table 3.5
Loans
Deposits
Securities
Chitties
Agriculture
Fixed Deposits
Locker facilities
1 year
Non- Agriculture
( FD)
Go down facilities
2 year
Recurring
Saving
Current
Source: Survey data
39
Co- operative Banks and Rural Development
The bank writes off the debts from the customers who have
made default in repayment as no payment of the principal amount or
interest and made arrear even the date has expired. And the bad debts
will be met by the bank from the incentives from Government and the
Govt. has implemented new programmes like ASWAS 2005 for
helping the banks. Through this survey we could find out that the
programmes of this co-operative bank helps in rural development and
the bank plays an important role in the developing lifestyle of the
people.
Data from Customers
On the basis of the data collected from the bank we have chosen 8
customers for individual interview. The gathered data from them are
encoding below.
Table 3.6
Sl No.
1.
Name
Smt. Leelamani
Amma
Balachandran
2.
Shri
3.
Pillai
Smt Nazeema
4.
Address
Loan which
Valiyaveettil Kizhakkathil
have taken
Agriculture
Muthupilakkadu
Kuzhivila Kizhakkathil
Agriculture
Muthupilakkadu West
Kuttiyude Kizhakkathil
Agriculture
Panampally
Geetha Bhavanam
Agriculture
Muthupilakkadu
40
Co- operative Banks and Rural Development
5.
6.
Smt
7.
Amma
Adarsh
8.
Rahul Bhavanam
Agriculture
Muthupilakkadu west
Nellippuzha Veedu
Non- agriculture
Muthupilakkadu West
Panakkal Ellathu veedu
Non- Agriculture
Muthupilakkadu West
Ottoorkkavu Vedu
Non-Agriculture
Sarasamma
Smt Janaki
Muthupilakkadu West
Source: Survey Data
Eight Customers were surveyed and datas were compiled.
Name
Loan
Loan
Interest
Monthly
Perio
Sl
Amount
rate
Payment d of
No
(lakh)
Smt Leelamani
Agri
Amma
Shri Balachandran
Agri
6000
repay
3
7500
4500
6000
7500
8000
3
3
3
8500
4500
1.
3
2.
3.
4.
5.
Pillai
Smt Nazeema
Agri
1
2
2.5
1.5
2
2
Agri
Agri
Non-
Amma
Agri
Non-
Agri
Non-
3.5
agri
10
6.
Adars
7.
h
8.
Smt Janaki
3.5
Table 3.7
Source: Survey Data
41
Co- operative Banks and Rural Development
All the customers have preferred loans below 4 lakh and majority of
them pays payment correctly.
The details of defaulted customer and reason
Table 3.8
Sl
Name
Loan
No
1. Shri Raghavan Nair
Agri
Method of
Reason for
payment
Non
7500
payment
Natural
Calamities
Source: Survey Data
The details show there has only 10% of the loaners make default in
repayment.
The details product and its profitability in the case of Agriculture Loans
Table 3. 9
Sl
Agriculture crop
Profitability
No.
1.
Paddy
2.
Vegetables
3.
Poultry
4.
Poultry
42
Co- operative Banks and Rural Development
5.
Paddy
All the customers have used the loan amount for agriculture and
majority of them gained profit. The details of the products and its
profitability in the case of Non- Agriculture.
Table 3. 10
Sl No
1.
Name
Smt
Type of business
Profitability
Y
Sarasamma
2.
Amma
Adarsh
3.
Smt Janaki
Coir Industry
Matchstick
Ice Plant
43
Co- operative Banks and Rural Development
CONCLUSION
44
Co- operative Banks and Rural Development
Suggestions
Based on the above findings, the following suggestions are
offered.
1. Minimize and simplify the formalities to be followed by
customers for getting the loans sanctioned and for its
disbursal.
2. Considering the peculiar economic features of Kerala,
permission to open Non-Resident External (NRE) accounts
may be given as majority of funds are remittances from
abroad. Simultaneously, the staff of the bank should be
45
Co- operative Banks and Rural Development
Findings
1. About 75% of the total populations are the beneficiaries of
the loans and advances given by the Co-operative Bank,
Sasthamcotta
2. Funds and resources of the bank are properly mobilized.
3. More efficiency can be achieved by the Bank through more
and more fund mobilization
46
Co- operative Banks and Rural Development
CHAPTER I
CHAPTER II
CHAPTER-III
APPENDIX
1. Name
:
2. Address
:
3. Gender
:
4. Occupation
:
5. Loan which have taken
:
6. Amount of the Loan
:
7. Interest Rate
:
8. Validity of the loan
:
9. Monthly Payment
:
10. How did you used the amount
:
11.Do you correctly pays the monthly payment :
12. If not what are the reason
:
13. Agriculture Crop
:
14. Type of Business
:
15. Is the business/ Agriculture profitable
:
1.
2.
3.
4.
5.
time?
6. The maximum amount which can be granted on self surety
to customer?
7. The necessary actions taken for loan defaulters?
8. Does every customer repay the loans correctly?
9. Degree of political interference on granting loans and other
services?
10. How do you consider customers for write-off debts?
CHAPTER-IV