The Co-operative Bank - Introduction & History (Part - 1)
Essential for All Upcoming Bank Exams
History of Co-operative Banking in India:
- From the days of famine and adversity in Europe, the historic roots of cooperative movement around the world face the common people who have not received little or no access to their basic needs in the uncertain times. This idea spread when the continent faces economic disasters, leading to large communities not living in a living phase beyond any economic security. This was the concept of Hermann Schulze (1808-83) and Friedrich Wilhelm Raiffeisen (1818-88) that was attracted to today's co-operative bank around the world. They started making loans for small businesses easily and started promoting the ideas of the poor in the society. It is similar to many micro finance companies which have become very popular in today's developing economy. Although it helped spread the co-operative movement in many parts of Europe, it came from the stimulating Christian movement in the British Isles and gained high recognition with the lower classes of the society and the working class. However, on September 20, the UK and Irish credit unions were inspired by US credit unions, which encouraged them to grow in the Canadian adaptation of the German cooperative banking concept. These movements were supported by the government of the concerned country. This success was achieved in the failure of commercial banks and the need for small business owners and ordinary people who were outside the institutional banking net. Cooperative banks eliminate the defects of essential market and serve poor levels of society.
- Indian Co-operative Bank was born as a result of the current crisis in Indian society.
- The Cooperative Debt Society Act, 1904 leads to the formation of cooperative co-operative societies in both rural and urban areas. This law was foundation on the recommendation of Sir Edward Law (1901) and Sir Frederick Nicholson (1899). Instead, their ideas were based on the pattern of Raiffeisen and Schulze respectively.
- The Co-operative Societies of 1912 recognized the constitution as the non-credit society and the formation of a central co-operative organization.
- In independent India, at the beginning of the plan, cooperative organizations have gained further leverage and roll through continuous government support.
- Due to lack of proper education to the public, the Machlagan Committee in 1915 highlighted the weakness of the co-operative society - thereby lacking proper education of the public. In order to support the movement, he highlighted the importance of central assistance by the government.
- The Agricultural Revenue Commission of 1928 referred to the importance of education of the members / workers for effective implementation of cooperative movement.
- In the year 1945, the Saraiya Committee recommended the establishment of cooperative training colleges in each state and the Center for Advanced Research and Research Cooperative Training Institute.
- In 1953, the Central Committee of Cooperative Training Center formed by the Reserve Bank of India to set up a Regional Training Centre.
- Rural Credit Survey Committee, 1954 constituted the first fund and formed the first Grameen credit problem and other financial problems of the rural society.
Cooperative movements and banking structures spread quickly and compete with the unexpected needs of Indian and small businesses in rural areas. Because, in the 1950, they found a long way to assist and support the activities of credit, banking, manufacturing, processing, distribution / marketing, housing, warehousing, irrigation, transportation, textiles, dairy, sugar etc. in the household.