Explain the cooperative credit institutes.

1.	Explain the cooperative credit institutes.
Answer» Cooperative Societies : The establishement of Cooperative Credit Institutes began in India in 1904. Their contribution in total institutional credit 2013-14 was 16.9 per cent. Cooperative Credit Institutes are divided into a 3 tier system : Primary Credit Societies : They have been set up at the village level. A minimum of 10 persons can establish it in a village or region. It provides loans for production work. Central Co-operative Banks : These are set up at a district level and their main function is to provide loans to Primary Credit Societies. They function as intermediaries between state cooperative banks and Primary Credit Societies. The tenure of loan ranges from 1-3 years. State Co-operative Banks : These have been set up at the state level. Long term loans are provided by them to district cooperative banks, and in addition to this, they also exercise control over their functioning. These are financed by the Reserve Bank.

Answer»

Cooperative Societies : The establishement of Cooperative Credit Institutes began in India in 1904. Their contribution in total institutional credit 2013-14 was 16.9 per cent.

Cooperative Credit Institutes are divided into a 3 tier system :

Primary Credit Societies : They have been set up at the village level. A minimum of 10 persons can establish it in a village or region. It provides loans for production work.
Central Co-operative Banks : These are set up at a district level and their main function is to provide loans to Primary Credit Societies. They function as intermediaries between state cooperative banks and Primary Credit Societies. The tenure of loan ranges from 1-3 years.
State Co-operative Banks : These have been set up at the state level. Long term loans are provided by them to district cooperative banks, and in addition to this, they also exercise control over their functioning. These are financed by the Reserve Bank.

Explain the cooperative credit institutes.

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