A

PROJECT REPORT

ON

ROLE OF COOPERATIVE BANK IN AGRICULTURAL

CREDIT: A STUDY BASED ON ROPAR

A training report submitted in partial fulfillment of the requirement for

the degree of

BECHELOR OF BUSINESS ADMINISTRATION

Batch 2012-15

Submitted by: Manpreet Kaur

Course: BBA

University Roll No

1

.

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DECLARATION

We hereby declare that the project report entitled “ROLE OF COOPERATIVE BANK IN AGRICULTURALCREDIT: A STUDY BASED

ROPAR”.

Submitted to School of Management Studies, Ropar Institute of

Management and Technology in partial fulfillment of requirements of

BBA programmed is a bonafide work carried out by Manpreet Kaur

under the guidance of Rupinder Kaur. This has not been submitted

earlier to any university for the reward of degree or published any time

before.

Teacher signature:

Student signature:

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ACKNOWLEDGEMENT

I acknowledge with gratitude my thanks to Mr. Dilraj Singh Manager of

the Roper central cooperative Bank .Ltd. to provide me for undergoing

6 Month Training .

My special thanks to all the staff members of the ropar central

cooperative bank Ltd. for their valuable suggestions.

I express our profound gratitude to Miss Rupinder Kaur, Assistant

Professor of our Department of Management Studies for her expert

guidance in this training project

Teacher Signature: Student Signature:

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INDEX

INTRODUCTION ABOUT THE BANK ABOUT THE PROJECT

REVIEW OF LITERATURE RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY METHODSOF DATA COLLECTION DATA ANALYSIS FINDINGS LIMITATIONS AND SCOPE

SUGGESTIONS AND CONCLUSION BIBLIOGRAPHY

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INTRODUCTION OF CO-OPERATIVE BANK

A co-operative bank is a financial entity which belongs to its members,

who are at the same time the owners and the customers of their bank.

Co-operative banks are often created by persons belonging to the same

local or professional community or sharing a common interest.

Co-operative banks generally provide their members with a wide range

of banking and financial services (loans, deposits, banking accounts). A

bank that holds deposits makes loans and provides other financial

services to cooperatives and member-owned organizations. Also known

as Banks for Cooperatives.

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It’s a bank made for the economically weaker section of the society,

those banks help them getting loans in lower interest etc. You can say

like for farmers or any small scale undertakings or transactions.

While the co-operative banks in rural areas mainly finance agricultural

based activities including farming, cattle, milk, hatchery, personal

finance etc. along with some small scale industries and self-

employment driven activities, the co-operative banks in urban areas

mainly finance various categories of people for self-employment,

industries, small scale units, home finance, consumer finance, personal

finance, etc .

Though registered under the Co-operative Societies Act of the

Respective States the banking related activities of the co-operative

banks are also regulated by the Reserve Bank of India. They are

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governed by the Banking Regulations Act 1949 and Banking Laws (Co-

operative Societies) Act, 1965.

DEFINATION OF A COOPERATIVE BANK

Cooperative banks are organized and managed on the principle of

cooperative, self-help, and mutual help. They function with the rules

of “one member, one vote” Function on “no profit, no loss” basis.

The cooperative banks as a principle do not pursue the goal of the

banking function of deposit mobilizations, supply of credit and

provision of remittance facilities.

So cooperative banks provide limited banking products

and functionally specialists in agricultural related products. However,

the cooperative banks now provide housing loans also.

The state cooperative banks (SCBs) , central cooperative

banks (CCBs), and the urban cooperative banks(UCBs) can normally

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extent housing loans to individual. The cooperative banks do banking

business mainly in agricultural and rural sectors.

However, state cooperative banks

(SCBs), central cooperative banks (CCBs), and the urban cooperative

banks (UCBs) operate in semi urban, urban and metropolitan areas

also. The urban and the non –agricultural business of these banks

has over the years.

PRIMARY COOPERATIVE CREDIT SOCIETY

It is a village institution , which directly deals with the rural people .It

encourages savings among the agriculturalists , accept deposits from

them, gives loan to the needy borrowers and collects repayments.

The funds of the society are derived from the share capital, deposits

of members and loan from CCBs. The borrowing powers of the

members as well as of the society are fixed .

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CATEGORIES:

There are two main categories of the co-operative banks.

(a) Short term lending oriented co-operative Banks - within this

category there are three sub categories of banks viz state co-operative

banks, District co-operative banks and Primary Agricultural co-operative

societies.

(b) Long term lending oriented co-operative Banks - within the second

category there are land development banks at three levels state level,

district level and village level.

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The co-operative banking structure in India is divided into following main 5 categories:

1. Primary Urban Co-op Banks.

2. Primary Agricultural Credit Societies.

3. District Central Co-operative Banks.

4. State Co-operative Banks.

5. Land Development Banks.

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FUNCTIONS OF CO-OPERATIVE BANK

Co-operative Banks are organized and managed on the principal

of co-operation, self-help, and mutual help. They work on the

basis of “no profit no loss”. Profit maximization is not their goal.

Co-operative bank do banking business mainly in the agriculture

and rural sector. However, UCBs, SCBs, and CCBs operate in semi

urban, urban, and metropolitan areas also.

The State Co-operative Banks (SCBs), Central Co- operative Banks

(CCBs) and Urban Co-operative Banks (UCBs) can normally extend

housing loans up to Rs 1 lakh to an individual. The scheduled

UCBs, however, can lend up to Rs 3 lakh for housing purposes.

The UCBs can provide advances against shares and debentures.

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FINANCE FUNCTIONS:

Cooperative banks in India finance rural areas under:

Farming.

Cattle.

Milk.

Personal finance.

Cooperative banks in India finance urban areas under:

Self-employment.

Industries.

Small scale units.

Home finance.

Consumer finance.

Personal finance.

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STRUCTURE OF CO-OPERATIVE BANK IN INDIA

The State Co-operative Bank (SCB) which is also known as the Apex

Bank among the co-operatives functions at the state level. At the

district level, there is the District Central Co-operative Bank (DCCB) for

each district. At the base of the pyramid there are the Primary Credit

Societies or the Primary Agricultural Credit Societies (PACS) which cover

small towns and villages. Each higher level co-operative bank is a

federation of those below having membership and loan operations

restricted to their affiliated units.

SCB - The State Co-operative Bank.

DCCB - The District Central Co-operative Bank.

PACS - The Primary Agricultural Credit Societies.

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PRIMARY AGRICULTURAL CREDIT SOCIETY

At the base of the co-operative credit structure are the primary

agricultural credit societies (PACS) occupying a predominant position.

The organization of PACS dates back to 1904 when the first co-

operative credit society act was passed. These societies were started

with the main objective of providing cheap credit to farmers. They

interact directly with the borrowers by providing them loans and

collecting the repayment of loan already given. They are the basic units

having links the ultimate borrowers and the hire financing institutions.

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DISTRICT CULTURAL CO-OPERATIVE BANK

There are now 351 DCCBs which land about Rs. 14000 crore annually.

The Central Co-operative Bank is usually located at the head quarters of

the district. Central Co-operative banks are generally of two types one

is the membership type i.e. federating members known as 'Banking

Union' and the other is the mixed membership type, consisting of both

primary members and individual having some financial status, influence

or special business experience in the field of co-operative banking. The

main function of Central Co-operative Banks is to land money to their

affiliated primary societies

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STATE CO-OPERATIVE BANK

There is 29 STATE Co-operative Banks in the country. The SCBs have

assumed a key position in the co-operative credit structure because it is

only through them that the RBI provides loans and advances to

agriculturist.

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DCCBs of PSCB (District Central Cooperative Banks):

S. NO. NAME OF THE CENTRAL COOPERATIVE BANK

LOCATION PHONE NO.

1. AMRITSAR CENTRAL COOPERATIVE BANK

AMRITSAR 0183-543351,543076

2. BHATINDA CENTRAL COOPERATIVE BANK BHATINDA 0164-212104

3. FARIDKOT CENTRAL COOPEATIVE BANK FARIDKOT 01639-50144,50225

4. FAZILKA CENTRAL COOPERATIVE BANK FAZILKA 01634-22245,25245

5. FEROZEPUR CENTRAL COOPERATIVE BANK

FEROZEPUR 01632-46680,46082

6. GURDASPUR CENTRAL COOPERATIVE BANK

GURDASPUR 01874-30355

7. HOSHIARPUR CENTRAL COOPERATIVE BANK

HOSHIARPUR 01882-24100,20771

8. JALANDHAR CENTRAL COOPERATIVE BANK

JALANDHAR 0181-224571,224298

9. KAPURTHALA CENTRAL COOPERATIVE BANK

KAPURTHALA 01822-33469,33223

10. LUDHIANA CENTRAL COOPERATIVE BANK LUDHIANA 0161-411966,441281

11. MANSA CENTRAL COOPERATIVE BANK MANSA 01652-25381,25078

12. MOGA CENTRAL COOPERATIVE BANK MOGA 01636-23629,29520

13. MUKTSAR CENTRAL COOPERATIVE BANK MUKTSAR 01633-62078,64457

14. NAWANSHAR CENTRAL COOPERATIVE BANK

NAWANSHAR 01823-23977,20034

15. PATIALA CENTRAL COOPERATIVE BANK PATIALA 0175-224758,217053

16. ROPAR CENTRAL COOPERATIVE BANK ROPAR 01881-20412,20481

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PRESENT SITUATION OF THE CENTERAL CO-OPERATIVE BANK

Name "The CENTRAL CO-OPERATIVE BANK (ROPAR)”.

Establishment 1927.

Approved by RBI (Reserve Bank of India).

Address of Head Office Railon Road.

Near D.A.V School,

ROPAR. (Phone no. - 01881-220412).

E-mail ccb_ropar@yahoo.co.in

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BRANCHES

A part from its head office at Ropar, The Bank has been in the services of the people through a network of its 26 branches spread over the district.

Name of Branches:

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Name of the Branch EVENING BR. ROPAR DUMEWAL

CHANDIGARH GHANAULI

MORINDA BELA

CHAMKAUR SAHIB S.M.MOR

NANGAL KAINAUR

NURPUR BEDI DHER

ANANDPUR SAHID BHATARGARH

MIANPUR CHAKLAN

ROLU MAJRA JHALLIAN KALLAN

BBHAPAUPLI SUREWAL

TAKHATGARH SUKHE MAJRA

PURKHALI B.O.ROPAR

KIRATPUR SAHIB EXT. COUNTER A.P.S

Board Of Directors

Chairman Gurnam Singh ThekadarManaging Director Harpal Singh

Vice Chairman Udam Singh

Distt. Manager Bhaskar KattariaDirector Harnek singh

Harjinder SinghAvtar SinghMohan SinghBaldev Singh

Senior Manager Gurmail SinghCharanjit Singh

Branch Manager Dilraj Singh

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Management & Organization Set Up:-

An organization may have various level of management. The term Level involves the persons arranged in a series. When several activities of enterprise are geographically dispersed in different locations, territorial or geographically may be adopted. All activities relating to a particular area or zone may be grouped together under one zonal manager or head. There may be further sub-division of activities under one zonal manager as illustrated below

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OBJECTS:

The objects of banks are to facilitate the operations of the

affiliated Coop. Societies. In pursuance of the objects the bank may

undertake the following

Activities:

To carry on banking and credit business.

To provide credit facilities to its members on as convenient terms as practicable,

To encourage thrift and saving amongst its members by offer suitable facilities;

To make arrangement for supervision and inspection of its affiliated Co-operative Societies.

To undertake such measures as are conductive to the spread of Cooperative Education and training.

To do all such other things as are incidental or conducive to

the promotion or advancement or objects of the Bank.

To solicit or procure insurance business as a Corporate

Agent.

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MEMBERSHIP

The following shall be eligible for membership of the bank:-

1. Co-operative societies registered within the area of operation

of the bank.

2. No individual shall be admitted as the member of the bank

(shares of existing individual members shall be retired in the

manner prescribed in the Punjab Cooperative Societies Act

and the rules framed there under.)

Nominal membership will be opened to a person or a class of

persons, coop. society or a class of societies. Alternatively, an

association or a class of associations approved by the

Registrar. For this purpose, by any general or special order

and admitted by the board to enable the bank to transact the

business with, provide the banking facilities and render service

to them such as the advances overdraft, cash credit bill,

discounting etc. A written application for nominal membership

shall be submitted in the form along with an admission fee of

Rs.200/- which shall be non-refundable.

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The bills purchased/discounted should be treated as overdue

if the same remain unpaid interest may be charged to such

overdue bills and taken to profit and loss account provided

and matching provision is made.

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Main activities/functions of the bank:-

To accept deposits of money from the public for the purpose of lending and investment.Services provided by the bank:-

I. Deposits:- Saving Bank Account Current Deposit Fixed Deposit Long-term Deposit Recurring Deposit

II. Loans:-a) Loans to Public:

Consumer durable loans Personal Loan to salary class Housing Loan Sehkari Education loan

b) Loans to Central Cooperative Banks: (Re-finance) Short term agriculture loan Medium term agriculture loan Short term non-agriculture loan

(Consumption Loan)

c) Non farm sector loan:27

Two wheeler loan to farmers Cash Credit Fertilizer Cash Credit Limit to Cooperative Sugar Mills Tube well Poultry Dairy development

INCOME RECOGNITION NORMS

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Income recognition norms should be the main objective. The basic aim

of which is recovery than on any subjective consideration. Unrealized

income should not be taken to profit and loss account. The recognition

norms are as follows:

1.) INTEREST INCOME

As per guidelines, interest income has been divided into three

categories:-

Interest received

Interest due not realized

Accrued interest

Interest received accrual interest can be taken as income

to the profit and loss subject to condition the accrued interest should

be realized in next year. A matching provision for the interest accrued

to the extent it could not be realized, should be made. These guidelines

are applicable even to those loans accounts which are backed by

Government Guarantees and the interest from discounting of bills.

Interest due but not received cannot be as income in the

profit and loss account. This condition will be applicable in case of

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Government Guaranteed advances. However interest on advances

against term deposits, NSCs, IVPs, KVPs & life policies may be taken to

income A/C on the due date provided adequate margin is available in

these accounts.

In order to comply with these guidelines, it is not

necessary that bank should keep unrealized interest in separate A/C as

interest receivables. At the end of the year calculate the unrealized

interest using the formula as given and create the provision for the

same in the profit and loss account to only interest received.

INCOME FROM RE NEGOTIATED / RESCHEDULED

OUTSTANDING DEBTS 30

Some relaxation is given to banks under these guidelines banks are

allowed to recognize interest as income whether received or not in the

context of rescheduled loan accounts. The relaxation is available over

the period covering the renegotiated or rescheduling of credit. When

rescheduled period is over, interest will be recognized as the income in

the profit and loss account if received.

GUARANTEES CREDIT FACILITIES BACKED BY GOVERNMENT

In the case of credit facilities backed by

government guarantee, Overdue interest can be take to profit and

loss account only if matching provision is made.

CREDIT FACILITY IN THE FORM OF BILLS PURCHASE

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The bills purchased/discounted should be

treated as overdue if the same remain unpaid interest may be charged

to such overdue bills and taken to profit and loss account provided and

matching provision is made.

CONCEPTUAL FRAME WORK

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Financial sector reforms in India has progressed on aspects like

interest rate deregulation, reduction in reserve requirements, barriers

to entry, prudential norms and risk based supervision. But progress on

the structural-institutional aspects has been much slower and is cause

for concern. The sheltering of weak institutions while liberalizing

operational rules of the game is making implementation of the

operational changes difficult and ineffective. The changes required to

tackle the NPA problem would have to span the entire gamut of

judiciary, polity and bureaucracy to be truly effective.

After nationalization, the initial mandate that banks

were given was to expand their branch network, increase the savings

rate and extend credit to the rural & SSI sectors. This mandate has been

achieved admirably. Since the early 90’s the focus has shifted towards

improving quality of assets and better risk management.The‘directed’

lending approach has given way to more market driven practices.

The Narsimham Committee has recommended prudential

norms on income recognition, asset classification and provisioning.

In a change from the past, income recognition is now not on an accrual

basis but when it is actually received. Past problems faced by banks

were to a great extent attributable to this. Classification of what an NPA

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is has changed with tightening of prudential norms. Currently an asset

is ‘non-performing’ if interest or installments of principal due remain

unpaid for more than 90 days.

These basic principles include:

The safety of the advance

Purpose for which the loan is given

Liquidity

Security

Profitability

The banks, because of the very nature of their deposits being received

from the public, should assess properly the need of the borrower.

There are no set rules or methods to appraise loan application.

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ROLE OF COOPERATIVE BANK IN AGRICULTURAL

CREDIT: A STUDY BASED ON ROPAR

ABSTRACT

The cooperative banking sector is one of the main partners of Indian banking structure, the cooperative banks have more reach to the rural India, through their huge network of credit societies in the institutional credit structure. The cooperative sector has played a key role in the economy of the country and always recognized as an integral part of our national economy. Cooperatives have ideological base, economic objects with social outlook and approach. The cooperative covers almost all cent percent villages in India. The cooperative form of organization is the Ideal Organization for economically weaker sections in the country. According to recent study by World Bank and National Council for Applied Economic Research, the Primary Agriculture Credit Societies (PACS) amount for about 30 percent of micro credit in India. This paper attempts to analyze the role of co-operative bank in agricultural credit.

Keywords : Cooperative Bank, Agricultural Credit, Rural Development, PACS

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INTRODUCTION

India is agricultural based country and its 70% population stay in rural area. The cooperatives which are the life blood of the Indian economy and the mechanism for any developmental programs. Especially in an agriculture dominated rural sector, cooperative banks play a pivotal role in bolstering the common individual and financing his business and personal needs. The cooperative credit structure is serving the Indian society since 1904 and since then it has seen several ups and downs. Despite of several limitations such as restriction of area of operations, limited clients, small volume of business, political interference, this movement is standing since last 108 years and serving the societies. Economy of the Punjab is mainly dependent on agriculture as more than 80% of the total population is engaged in this sector. The Punjab Government has implemented from 2008-2009 the scheme of providing agricultural loans at the rate of 3%. Punjab is basically known as “Wheat Bowl” The State has witnessed tremendous growth in the cooperative sector. Empirical analysis results show that the increase in the level of agricultural loans granted by the cooperative banks positively influence development of agriculture in India.

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REVIEW OF LITERATURE / COMMITTEE REPORT

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Credit is a crucial input process of development. For historical reasons, Indian farming community failed to make huge investments in agriculture. There is an adage which says that “Indian farmer is born in debt, lives in debt and dies in debt”. In order to mitigate the problems of the farming community, the Cooperative Credit Societies Act was passed in 1904, which permitted the formation of credit societies. They provided institutional support to farmers for short, medium and long term purposes. Subsequently, tiers at state and district levels were too conceived to strength these credit co-operatives. Apart from these cooperative institutions, nationalization of commercial banks and introduction of regional rural banks also helped in increasing credit supply to farmers. As mentioned before, by now the Indian credit cooperatives have a century long history. During this period these institutional financing agencies failed to a large extend, to meet the requirements (consumption and production) of the farmers. Some of the factors responsible for their failure are inadequate supply of credit, poor recovery, demand-supply gaps, interference by politicians, lack of monitoring, mis-utilisation of credit, problems in identification of target groups, high transaction costs, and lags in time, natural calamities and competition from informal credit agencies. A number of committees such as the Rural Banking Inquiry Committee (1949), the All India Rural Credit Survey Committee (1954), the Committee on Cooperative Credit (1960), the All India Rural Debt and Investment Survey (1962), the All India Rural Credit Review Committee (1969), the Working Group on Rural Banks (1975), the Committee to Review Arrangement for Institutional Credit for Agriculture and Rural Development (1981), the Agricultural Review Committee (1989) and the Narasimhan Committee (1991 and 1998)

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OBJECTIVES

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To study the performance of cooperative banking in respect of agricultural credit and rural development.

To study the role of cooperative bank in agricultural credit. To study the agricultural credit structure of the cooperative bank.

HYPOTHESIS

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Cooperative banking is an important sector in Punjab as far as its role in agricultural credit and socioeconomic development of Punjab is concerned. It has no alternative in the era of economic reforms also.

AREA OF THE STUDY

The study is based on the agricultural credit of cooperative bank of Punjab in Ropar. Therefore, study covers Ropar to the fulfillment of objectives of the study.

PERIOD OF THE STUDY

For collection of the secondary data on the agricultural credit of the cooperative bank, three years i.e. from 2013-2014 to 2014-2015 were taken as the reference period. The required primary data were collected from the members and actual own experience in the field and discussion with all concerns during the year 2013-2014.

RESEARCH METHEDOLOGY AND DATA COLLECTION

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The present study is based on the secondary data published by office of the Registrar of Cooperative societies Ropar. The required data and literature for the study purpose were collected from the number of reference books, Journals and Internet.

Short Term Agricultural Cooperative Credit Distributions and Recoveries

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Table 1 shows the short-term credit distribution and Table 2 presents short-term credit recoveries for the last three years from 2009-2010 to 2011-2012. Graph 1 and Graph 2 show the same. The credit distribution was increased year by year and recovery of credit was poor.

Table 1. Short-term Agricultural Loan Distribution

Year Kharif Rabi Total

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2012-2013 82141 12417 945582013-2014 90784 20809 1116742014-2015 121739 5203 126942(up to 31.12.2014)Source: Cooperative Department Report – 2013-2014. *(Figures- Rs. in lakhs)

2012-2013 2013-2014 2014-20150

20000

40000

60000

80000

100000

120000

140000

KharifRabi

Graph1: Short- term Agricultural Loan Distribution

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Table 2.Short-term Agricultural Loan Recovery

Year Demand Recovery % of Recovery2012-2013 148086 114659 772013-2014 170724 133681 782014-2015 188864 68210 36 (31.12.2014)

2012-2013 2013-2014 2014-20150

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

DemandRecovery

Graph2: Short-term Agricultural Loan Recovery

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Long-term Agricultural Cooperative credit distributions and recoveries

Table 3 shows the long term credit distribution and Table 4 presents long-term credit recoveries for the last three years from 2009-2010 to 2011-2012. Graph 3 and Graph 4 show the same. The credit distribution was increased and target achieved above 90%, and poor recovery of credit.

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Table 3. Long-term Agricultural Loan Distribution

Year Target Distribution % of Distribution

2012-2013 1500 1379 922013-2014 1424 1355 952014-2015 1215 126 10 (up to

31.12.2014)

2012-2013 2013-2014 2014-20150

200

400

600

800

1000

1200

1400

1600

TargetDistribution

Graph 3. Long-term Agricultural Loan Distribution

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Table 4. Long-term Agricultural Loan Recovery

Year Demand Recovery % of Recovery2012-2013 10943 5784 532013-2014 10235 4870 482014-2015 9764 722 07 (up to

31.12.2014)

2012-2013 2013-2014 2014-20150

2000

4000

6000

8000

10000

1200010943

102359764

5784

4870

722

Demand

Recovery

Graph 4. Long-term Agricultural Loan Recovery

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KISAN Credit Card

In Punjab the KCC was introduced from 1999 in District Central Co-operative Bank for short-term and medium-term loans to provide adequate and timely credit support from the banking system in a flexible and cost-effective manner. The cash and goods ratio of the scheme is 60:40. Maximum limit of KCC is rupees five lakhs. 1366514 KCC issued since the scheme introduced.

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SCOPE AND LIMITATIONS OF STUDY

LIMITATIONS:

Study is limited to concept of cooperative and agricultural credit. The information collected from 50 respondents only. The study is applicable to other district of Punjab

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SCOPE:

Agricultural Credit

The Agricultural Credit Policy essentially lays emphasis on augmenting credit flow at the ground level through credit planning, adoption of region-specific strategies, rationalization of lending policies and procedures and bringing down the cost of borrowing. Bank credit is available to the farmers in the form of short-term credit for financing crop production programs and in the form of medium-term/long–term credit for financing capital investment in agriculture and allied activities like land development including purchase of land, minor irrigation, farm mechanization, dairy development, poultry, animal husbandry, fisheries, plantation, and horticulture. Loans are also available for storage, processing and marketing of agricultural produce.

National Bank for Agriculture And Rural Development (NABARD)

The NABARD provides refinance to the Apex Bank and CARD Bank. NABARD is an apex institution accredited with all matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas. It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas. It co-ordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with

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Government of India, State Governments, Reserve Bank of India and other national level institutions concerned with policy formulation.

Primary Agricultural Cooperative Societies (PACS)

PACS are playing a crucial role in improving the economic and social conditions of the common masses of Punjab They provide short-term and medium-term loan to the members/farmers at reasonable interest rates to meet their various needs. They are providing credit to the farmers for agriculture purposes at cheap and easy terms. PACS is the foundation of the Cooperative Credit System on which the super structure of the short- term cooperative credit system is built.

Agricultural Cooperative Credit Structure

Short-term structure is a three tire structure with PACS in rural areas, Co-operative Central Banks at the district level and the Apex Bank at the state level. The short-term credit structure provides short-term credit for crop production and medium-term credit for small developments. Ropar Cooperative Agriculture and Rural Development Bank (PSCARDB) at the State level and Primary CARD Bank at the Block level cater to the long- term credit needs in the two tier credit delivery system. In the short term credit structure, 1333 PACS including 476 LAMPS are functioning. In addition to this, there are 6 District Cooperative Central Banks with 209 branches. Punjab State Co-operative Apex Bank is functioning as state level financial institution. In the long term credit structure CSCARD Bank with 12 District CARD Banks including 77 branches are function.

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Field Survey / Sample Design of The Study

The present study is survey based it attempts to explode the agricultural credit and economic development of rural sector. For the selection of the sample respondents, the researcher approached the Apex Bank (State Cooperative Bank). For the study 10 PACS have been selected from district Ropar and from each PACS 10 respondents have been selected by adopting simple random sampling. Thus 100 respondents were selected.

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OBSERVATIONS AND DISCUSSIONS

From the field survey report the following parameters / indicators conclude the observation and analysis of agricultural cooperative credit.

Table 5. Parameters / Indicators of Analysis

Banking service

55 (good) 36 (average) 9 (poor) 100

Lending procedure

60 (timely) 25 (delay) 15 (very delay)

100

Lending schemes

58 (limited)

32 (outdated)

10 (can’t say)

100

Interest (long term)

70 (high rate)

20 (very high)

10 (can’t say)

100

Repayments 64 (repaid) 26 (will paid) 10 (NPA) 100Awareness 56 (aware) 36 (average) 8 (not

aware)100

Satisfaction 76 (satisfied)

10 (unsatisfied)

14 (can’t say)

100

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RESULTS / FINDINGS

From the above data it is clear that cooperative banks are serving in the field of agricultural credit and rural development. Maximum numbers of respondents are satisfied with functioning of cooperative bank. The level of service of cooperative banks is very high. Cooperative banks are playing extraordinary role for agriculture credit and rural development. In short we can say that Cooperative Banks are providing rural Ropar all round assistance and proved to be an institution where "Growth with Social Justice" exists. Cooperative Banks plays a major role in rural credit delivery of Ropar.

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SUGGESTIONS

1. The Cooperative Banks should try to increase their deposits by opening branches in business areas, improve the services to their clients, introduce different types of deposit schemes and offer competitive rates of interest.

2. Cooperative Banks should change their loan policies on the basis of crop loan systems.

3. The Cooperative Banks must maintain adequate liquid resources, margin, properly scrutiny of loans and should try to qualitative improvement to the staff.

4. Cooperative Banks should try to co-ordinate between the Board of Management, Members, Depositors and Employees of bank.

5. Accountability and transparency need to be brought in the implantation of the schemes.

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CONCLUSION

Cooperative banks belong to the oldest forms of the collective action in India playing essential role in the realization of the agricultural and in local development. They serve both rural and urban population, and are main banks in India supporting development of agriculture and rural areas. Their key role is to give credits financing various rural based entrepreneurships. Agricultural credits play a number of significant functions of which the primary include the intensification and growth of the agricultural production. In a developing State like Chhattisgarh with huge deficits in terms of quality and quantity, the State has to shoulder the primary responsibility of providing cooperative credit. Considering the low living standards of common man, incomplete and imperfect markets, and other socio political considerations it is the primary duty of the government to ensure that its citizens have easy access to cooperative credit.

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BIBLIOGRAPHY

1. Departmental Report of Co-operative, Govt. of Punjab Year 2014-15.

2. Dasgupta R. 2005), Microfinance in India.

3. Gulati A. and Bhatia S. (2000), Institutional Credit to Indian Agriculture

4. Jadhao S P, Present Scenario of Banking Sector in India, International Research Journal 2013 June.

5. Misal S M, Cooperatives and Rural Development: Indian Streams Research Journal 2014 March.

6. Rajivan A. (2008), Microfinance in India, Yojna, January

7. Sharma, Mandira and Kumar, Rajiv (2008), Rural Short-term cooperative credit structure, Economic and Political weekly, March 1, pp. 13-18.

8. www.coop.cg.gov.in

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