Explain the three-tier cooperative system for agriculture credit.

1.	Explain the three-tier cooperative system for agriculture credit.
Answer» Government credit institutions have been divided into the following types under three-tier cooperative system : Primary Credit Societies : These have been set up at the village level. At least 10 persons can establish it in a village or region. They provide loan for productive works. Central Co-operative Banks : These are set up at a district level and their main function is to make loans available to primary credit Societies. They function as intermediaries between state cooperative banks and primary credit societies. The period of loan extended by them 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»

Government credit institutions have been divided into the following types under three-tier cooperative system :

Primary Credit Societies : These have been set up at the village level. At least 10 persons can establish it in a village or region. They provide loan for productive works.
Central Co-operative Banks : These are set up at a district level and their main function is to make loans available to primary credit Societies. They function as intermediaries between state cooperative banks and primary credit societies. The period of loan extended by them 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.

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