Cooperative banks are voluntary associations owned and operated by their members. They are established to provide self-help and mutual assistance to their members. In India, cooperative banks are registered under state cooperative societies acts and regulated by the Reserve Bank of India. There are different types of cooperative banks operating at various levels. Primary cooperative credit societies (PCCS) operate at the village level and provide financial services to farmers. Central cooperative banks (CCB) operate at the district level, while state cooperative banks (SCB) work at the state level and act as the apex body. Urban cooperative banks cater to urban and semi-urban areas. The long-term cooperative institutions include primary agricultural and rural development banks. Co

1. CO-OPERATIVE BANKING
SYSTEM : Scope object history
By DIYA NANDI, student of LL.M , UNIVERSITY OF
CALCUTTA

2. What are cooperative banks?
VOLUNTARY ASSOCIATION OF MEMBERS FOR SELF HELP. Financial entity which belongs to its members, who
are at the same time the owners and the customers of their bank.,often established by people belonging to the
same local or professional community having a common interest.
The co-operative structure is designed on the principles of cooperation, mutual help, democratic decision
making and open membership. It follows the principle of ‘one shareholder, one vote’ and ‘no profit, no loss’.
Cooperatives Banks are registered under the Cooperative Societies Act, 1912. These are regulated by the Reserve
Bank of India and National Bank for Agriculture and Rural Development (NABARD) under the Banking
Regulation Act, 1949 and Banking Laws (Application to Cooperative Societies) Act, 1965. Deposit Insurance and
Credit Guarantee Scheme upto 1 lakh per deposit, fraction

3. Characteristics of Cooperative Bank
Customer-owned entities : The members of cooperative banks are both the owners and the customers of the
bank. Thus, the aim of the cooperative bank is not to maximize profits but to provide the best possible services
to its members. Some of the cooperative banks also admit non-members so as to provide them with banking
services.
Democratic member control : Cooperative banks members, democratically elect the board of directors. ;“one
man one vote” is followed, irrespective of the number of shares held by a member, which ensures that no
member enjoys any arbitrary power over other members.
Profit allocation : A specified portion of the profits are transferred to Statutory Reserve and other reserves, and
then a fair rate of interest is paid on the capital subscribed by the members. A part of this profit can also be
distributed to the co-operative members, with legal and statutory limitations in most cases.
Inclusion of rural masses : It plays a significant role in the financial inclusion of unbanked rural masses.

4. Structure of Cooperative Banks in India
co-operative banks in India are divided into two categories - urban and rural. Rural cooperative credit institutions
could either be short-term or long-term in nature. Further, short-term cooperative credit institutions are further sub-
divide
● A State Co-operative Bank works at the apex level (StCB i.e. works at the state level).
● The Central Co-operative Bank works at the Intermediate Level (CCB i.e. works at district level).
● Primary Co-operative Credit Societies at a base level (i.e. PCCS works at village level).
Meanwhile, the long-term institutions are either
● State Co-operative Agriculture and Rural Development Banks (SCARDBs) at the apex level.
● Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) at the district level or block level.
On the other hand, Urban Co-operative Banks (UCBs) are either scheduled or non-scheduled. Scheduled and non-
scheduled UCBs are again of two kinds- multi-state and those operating in single state.

5. COOP BANKING structure :2
PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of
India.
StCBs/DCCBs are registered under the provisions of State Cooperative Societies Act of the State concerned and are
regulated by the Reserve Bank. Powers have been delegated to National Bank for Agricultural and Rural
Development (NABARD) under Sec 35 A of the Banking Regulation Act (As Applicable to Cooperative Societies) to
conduct inspection of State and Central Cooperative Banks.
Primary Cooperative Banks (PCBs), also referred to as Urban Cooperative Banks (UCBs), cater to the financial needs
of customers in urban and semi-urban areas. UCBs are primarily registered as cooperative societies under the
provisions of either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative
Societies Act, 2002 if the area of operation of the bank extends beyond the boundaries of one state. The sector is
heterogeneous in character with uneven geographic spread of the banks. While many of them are unit banks
without any branch network, some of them are large in size and operate in more than one state.

6. ACT & RULES APPLICABLE
A Co-operative Society functions as per the provisions of
1. Co-operative Societies Act ;
We have a number of Co-operative Societies Acts functional in different states like
– Maharastra Co-operative Societies Act, 1960,– Pondicherry Co-operative Societies Act, 1972,– Karnataka Co-
operative Societies Act, 1959,– Delhi Co-operative Societies Act, 1972,– Kerala Co-operative Societies Act etc.
When the area of operation is restricted to one state, the State Co-operative Act & Rules, under which the society is
registered will be applicable.In a particular state, if Co-operative Act and Rules is not enacted, the Central Act which is
known as The Co-operative Societies Act, 1912 and its rules will be applicable. the area of operation of Society is spread in
two or more states, The Multi-State Co-operative Societies Act, 2002 and its rules shall be applicable.

7. act,rules
2. Co-operative Societies Rules
A set of rules is also framed under the respective State Co-operative Act for procedural aspects.
3. Bye-laws
Each society also registered with the bye-laws for internal management of the societies duly approved by the registrar at
the time of registration of the society. The bye-laws of a society constitute a contract between a member and the society
and it provide for the management of the society. The bye-laws are framed within the provisions of the Act and the rules
made there under.
Bye-laws include the objects of the society and completely define and restrict the society’s activities, but the rights and
liabilities of members are determined by the Act and Rules and not by the bye-laws as such.
4. Notification and Orders issued from time to time by the Government, or any other Authority as prescribed under the
Act, Rules there under.

8. STATUTES
In India, co-operative banks are registered under the States Cooperative Societies Act. They also come under the
regulatory ambit of the Reserve Bank of India (RBI) under two laws, namely, the Banking Regulations Act, 1949, and the
Banking Laws (Co-operative Societies) Act, 1965.They were brought under the RBI's watch in 1966, a move which brought
the problem of dual regulation along with it.
Sec3 NIA “banker” includes any person acting as a banker and any post office savings bank].Sec56 ref to bank/bank co.
includes coop bank
BRA Sec 5 (b) "banking" means the accepting, for the purpose of lending or investment, of deposits of money from
the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise;
(c) "banking company" means any company which transacts the business of banking1 [in India]; Explanation.--
Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of
money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be
deemed to transact the business of banking within the meaning of this clause;
As per sec. 3 BRA, act dont apply to (a) a primary agricultural credit society (b) a co-operative land mortgage bank; and
(c) any other co-operative society, except in the manner and to the extent specified in Part V.]

9. STATUTE CONTD.
sec[7. Use of words "bank", "banker", "banking" or "banking company"
(1) No company other than a banking company shall use as part of its name 2[or in connection with its business] any
of the words "bank", "banker" or "banking" and no company shall carry on the business of banking in India unless
it uses as part of its name at least one of such words.
(2) No firm, individual or group of individuals shall, for the purpose of carrying on any business, use as part of its or
his name any of the words "bank", "banking" or "banking company".
(3)Nothing in this section shall apply to (a) a subsidiary of a banking company formed for one or more of the
purposes mentioned in sub-section (1) of section 19, whose name indicates that it is a subsidiary of that banking
company; 17 (b) any association of banks formed for the protection of their mutual interests and registered under
section 25 of the Companies Act, 1956 (1 of 1956

10. Types of Cooperative Banks in India
1. Primary Co-operative Credit Society
(cciv) "primary agricultural credit society" provide financial accommodation to its members for agricultural purposes or for purposes connected with
agricultural activities (including the marketing of crops); and (ii) no admission of any other co-operative society as member:unless such co-operative bank
subscribes to the share capital of such co-operative society out of funds PROVIDED by the State Government for the purpose;
CCVI "primary credit society" : co-operative society, NOT primary agricultural credit society,-- transaction of banking business; (ii) the paid-up share capital
and reserves of which are BELOW 1 LAKH and (iii) the bye-laws of which do not permit admission of any other co-operative society as a member:UNLESS co-
operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose. Explanation.--If
any dispute as to the primary object or principal business of any co-operative society referred to in clauses (cciv), (ccv) and (ccvi), a determination by the
Reserve Bank ,final;
(ccv) "primary co-operative bank" means a co-operative society, NOT primary agricultural credit society, transacting Banking business; (ii)
the paid-up share capital and reserves of which min. 1 lakh (iii) the bye-laws of which do not permit admission of any other co-operative
society as a member:unless such co-operative bank subscribing to the share capital of such co-operative society out of funds PROVIDED by the
State Government for the purpose;

11. PCCS
● The Primary Co-operative Credit Society is an association of borrowers and non-
borrowers residing in a particular locality.
● The funds of the society are derived from the share capital and deposits of members and
loans from central co-operative banks.
● The loans are given to members for the purchase of cattle, fodder, fertilizers and
pesticides.
● Borrowing constitutes the most important element of their working capital.
● The borrowing powers of the members as well as of the society are fixed but may differ
from state to state.

12. 3.NABARDA 2(u) “State co-operative bank”
principal co-operative society in a State, the primary object of which is the financing of other co-operative
societies in the State: Provided that in addition to such principal society in a State, or where there is no such
principal society in a State, the State Government may declare any one or more co-operative societies carrying on
business in that State to be also or to be a State cooperative bank or State co-operative banks within the meaning
of this definition;
● The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the
co-operative banking structure in the state.
● It procures funds from share capital, deposits, loans and overdrafts from the Reserve Bank of India.
● The state co-operative banks lend money to central co-operative banks and primary societies and not
directly to the farmers.
5cciiia , BRA "multi-State co-operative bank" means a multi-State co-operative society which is a primary co-
operative bank;] ; 3[(cciiib) "multi-State co-operative society" means a multiState co-operative society
registered as such under any Central Act for the time being in force relating to the multiState co-operative
societies but does not include a national co-operative society and a federal co-operative;]

13. 2. Central Co-operative Banks
NABARD ACT 1981 : 2d) “central co-operative bank” means the principal co-operative society in a district in a State,
financing of other co-operative societies in that district: Provided that in addition to such principal society in a district, or
where there is no such principal society in a district, the State Government may declare any one or more cooperative
societies carrying on the business of financing other co-operative societies in that district to be also or to be a central co-
operative bank or central co-operative banks within the meaning of this definition;
● These are the federations of primary credit societies in a district and are of two types:
1. Those having a membership of primary societies only.
2. Those are having a membership of societies as well as individuals.
● The funds of the bank consist of share capital, deposits, loans and overdrafts from state co-operative banks and
joint stocks.
● These banks provide finance to member societies within the limits of the borrowing capacity of societies.
● They also conduct all the business of a joint-stock bank

14. 4.Land Development Banks
● These are organized in 3 tiers, namely; state, central, and primary level with the objective to meet the long term
credit requirements of the farmers for developmental purposes.
● National Bank for Agriculture and Rural Development (NABARD) supervises Land development banks.
● The sources of funds for these banks are the debentures subscribed by both Central and State government as these
banks do not accept deposits from the general public.
All the LDBs are registered under the Co-operative Societies Act. their members have limited liability. Further,
unlike other co-operatives, LDBs do not have personal involvement in their functioning. under its federal structure, the LDB
consists of two-tier institutions: (i) the Central Land Development Bank at the State level, and (ii) the Primary Land
Development Bank at the district or Taluka level.
Obviously, there is only one Central Land Development Bank in each state and one primary development bank at the district
level. Thus, a state is normally supposed to have many primary land development banks as there are a number of districts.

15. Ldb 2
nder the federal structure, the Primary Land Development Banks deal with the farmers directly and the
Central Land Development Bank deals with the primary land development banks.
Under unitary structure, however, the state may have more than one Central Land Development Bank and
they make direct deals with the farmers. In some cases, the Central Land Development Bank has its
branches spread over the State and they do direct business with the agriculturists.
In some cases, the Central Land Development Bank serves as a department of the State Co-operative
Bank.

16. .5. Urban Co-operative Banks
● It refers to primary cooperative banks located in urban and semi-urban areas.
● Earlier the scope of these banks was restricted, which now has been considerably widened.
● They provide funds and services to small borrowers and small business.
Dual Regulation of Urban Cooperative Bank
● Urban Co-operative Banks are regulated and supervised by State Registrars of Co-operative Societies (RCS) in
case of single-State co-operative banks and Central Registrar of Co-operative Societies (CRCS) in case of
multi-State co-operative banks and by the RBI.
○ The RCS exercises powers under the respective Co-operative Societies Act of the States with
regard to incorporation, registration, management, amalgamation, reconstruction or liquidation
and in case of UCBs that have multi-State presence, are exercised by the CRCS.
● The banking related functions such as issue of license to start new banks/branches, matters relating to
interest rates, loan policies, investments and prudential exposure norms are regulated and supervised by the
Reserve Bank under the provisions of the Banking Regulation Act, 1949.

17. COOPERATIVES FUND
Cooperative banks in India fund rural are as under:
● Agriculture -Livestock -Milk-Nursery
● Personal finance
Cooperative banks in India finance urban areas by virtue of:
● Self-employment
● Industries
● Small-scale units
● Home finance
● Consumer finance
● Personal finance

18. Functions of Cooperative Banks
● financial assistance to people with small means and protects them from money lenders providing loans and
other services at a higher rate at the expense of the needy.
● It supervises and guides affiliated societies.
● Rural financing- It provides financing to rural sectors like cattle farming, crop farming, hatching, etc. at
comparatively lower rates.
● Urban financing- it provides financing for small scale industries, personal finance, home finance, etc.
● mobilises funds from its members and provides interest on the invested capital.
Cooperative banks differ from commercial banks on the grounds of organisation, governance, interest rates, the scope of
functioning, objectives and values.It is formed to promote the upliftment of financially weaker sections of the society and
to protect them from the clutches of money lenders who provide loans at an unreasonably high-interest rate to the
needy.

19. Objectives of Cooperative Banks
● To provide rural financing and micro-financing.
● To remove the dominance of money lenders and middleman.
● To provide credit services to agriculturalists and weaker sections of the society at
comparatively lower rates.
● To provide financial support and personal financial services to small scale
industries, housing financial assistance, etc.
● To provide basic banking services to its members.
● To promote the overall development of rural areas.

20. ORIGIN INDIA COOP BANKING
1889 - The first known mutual aid society in India was probably the "Anyonya Sahakari
Mandali" organised in the erstwhile princely State of Baroda in under the guidance of Vithal Laxman
also known as Bhausaheb Kavthekar. Urban co-operative credit societies, in their formative phase came
to be organised on a community basis to meet the consumption oriented credit needs of their members.
Salary earners" societies inculcating habits of thrift and self help played a significant role in
popularising the movement, especially amongst the middle class as well as organized labour. From its
origins then to today, the thrust of UCBs, historically, has been to mobilise savings from the middle and
low income urban groups and purvey credit to their members - many of which belonged to weaker
sections.
1904, - The enactment of Cooperative Credit Societies Act, however, gave the real impetus to
the movement. The Cooperative Credit Societies Act, 1904 led to the formation of Cooperative Credit
Societies in both rural and urban areas.
The act was based on recommendations of Sir Frederick Nicholson (1899) and Sir Edward Law (1901).
Their ideas in turn were based on the pattern of Raiffeisen and Schulze respectively.
first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile
Madras province in October, 1904.

21. ● Amongst the prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the
No.1 Military Accounts Mutual Help Co-operative Credit Society in Poona (January 9, 1906). Cosmos in
Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February 23, 1906) in
the Belgaum district, the Kanakavli-Math Co-operative Credit Society and the Varavade Weavers"
Urban Credit Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most
prominent amongst the early credit societies was the Bombay Urban Co-operative Credit Society,
sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on January 23, 1906.
● The Act only permitted the registration of credit societies ; no provision for the protection of non-credit
societies or federal societies. These shortcomings to remedy it; The Cooperative Credit Societies Act,
1904 was amended in 1912, known as the Cooperative Societies Act of 1912. It recognized the formation
and organisation of non-credit societies and the central co-operative federations.
● The Cooperative Societies Act of 1912, further gave recognition to the formation of non-credit societies
and the central cooperative organizations.
PRE INDEPENDENCE

22. ● In the present day context, it is of interest to recall that during the banking crisis of 1913-14, when no fewer than 57
joint stock banks collapsed, there was a there was a flight of deposits from joint stock banks to cooperative urban
banks. Maclagan Committee chronicled this event
"As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to withdraw
deposits from non-cooperatives and place them in cooperative institutions, the distinction between two classes of
security being well appreciated and a preference being given to the latter owing partly to the local character and
publicity of cooperative institutions but mainly, we think, to the connection of Government with Cooperative
movement".
● with a view to broad basing it to enable organisation of non-credit societies. The Maclagan Committee of 1915 was
appointed to review their performance and suggest measures for strengthening them. The committee observed that
such institutions were eminently suited to cater to the needs of the lower and middle income strata of society and
would inculcate the principles of banking amongst the middle classes. The committee also felt that the urban
cooperative credit movement was more viable than agricultural credit societies. The recommendations of the
Committee went a long way in establishing the urban cooperative credit movement in its own right.highlighted the
deficiencies of in cooperative societies which seeped-in due to lack of proper education to the masses. He also laid
down the importance of Central Assistance by the Government to support the movement.
● In 1919, after the end of the first world war under the Treaty of Versailles,1919, the Montague Chelmsford Reforms
were introduced in India under which Cooperation becomes a transferred subject which was to be administered by
the States. The need for separate acts for effective implementation and to widen the reach of the cooperative banks
was felt by the States. Cooperation became a State subject in 1919.

23. The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of
"Cooperation" from Government of India to the Provincial Governments. The Government of Bombay passed the first
State Cooperative Societies Act in 1925 "which not only gave the movement its size and shape but was a pace setter of
cooperative activities and stressed the basic concept of thrift, self help and mutual aid." The Bombay Provincial
Government was the first to pass its own act which was known as Bombay Provincial Cooperative Societies Act, 1925.
Madras, Bengal, Bihar and Punjab followed the Bombay Act and passed their own legislation in the following
years.This marked the beginning of the second phase in the history of Cooperative Credit Institutions.
There was the general realization that urban banks have an important role to play in economic construction. This was
asserted by a host of committees. The Royal Commission on Agriculture 1928, enumerated the importance of
education of members/staff for effective implementation of cooperative movement.
The Indian Central Banking Enquiry Committee (1931) felt that urban banks have a duty to help the small business and
middle class people.
● Land Mortgage Cooperative Banks were established in 1938 to provide loans initially for debt relief and land
improvement.9.Reserve Bank of India started refinancing cooperatives for Seasonal Agricultural Operations
from 1939
The Mehta-Bhansali Committee (1939), recommended that those societies which had fulfilled the criteria of banking
should be allowed to work as banks and recommended an Association for these banks.
In 1942, the British Government enacted the Multi-Unit Cooperative Societies Act, 1942, the ambit of which covered
societies whose operations are extended to more than one state. The Act provided for the regulation of affairs of such
society by the provisions of cooperative societies act of the state where the principal business of the society is located.

24. Post-independence period:1
Saraiya Committee, in 1945, further recommended the setting up of a Cooperative Training College in every state and a
Cooperative Training Institute for Advanced Study and Research at the Central level.
The Co-operative Planning Committee (1946) went on record to say that urban banks have been the best agencies for small
people in whom Joint stock banks are not generally interested.
Rural Banking Enquiry Committee (1950), impressed by the low cost of establishment and operations recommended the
establishment of such banks even in places smaller than taluka towns.n
1951, 501 Central Cooperative Unions were renamed as Central Cooperative Banks.Central Committee for Cooperative Training in
1953, constituted by RBI for establishing Regional Training Centre. The First Five Year Plan recognised the importance of
cooperatives in the implementation of development plans, particularly targeting the farmers and weaker section of the society.n
1954, Government of India’S committee called All India Rural Credit Survey Committee to first delve into the problems of Rural
credit and other financial issues of rural society THAT recommended a well defined institutional framework for cooperative
organizations, particularly for meeting the needs of rural India. The recommendations of the committee were recognised and
were put into effect under the Second Five Year Plan.

25. Post independence :2
he first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The Report published in 1961
acknowledged the widespread and financially sound framework of urban co-operative banks; emphasized the need to
establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to
their development.
In 1963, Varde Committee recommended that such banks should be organised at all Urban Centres with a population of 1
lakh or more and not by any single community or caste. The committee introduced the concept of minimum capital
requirement and the criteria of population for defining the urban centre where UCBs were incorporated.
IIT recommended expanding the scope of cooperative activities to other fields with special emphasis on the warehousing
sector.
The Third Five Year Plan emphasised on training personnel for the cooperative sector and to increase the reach of the
cooperative movement.

26. CONTD
The Fourth Five Year Plan recommended consolidation of a cooperative system for effective
functioning.
The Fifth Five Year Plan recommended the establishment of Farmers Service Societies.
Sixth Five Year Plan developed a point programme for a cooperative society to bring economic
development and for expanding the scope of cooperative societies.
The Seventh Five Year Plan also focussed on expansion and growth of the scope of cooperative
societies so as to achieve greater employment and decrease poverty in the country.

27. INTERNATIONAL ORIGINS:0………..scotland
in 1498. The Shore Porters Society, for example, claims to be one of the world’s first cooperatives, being
established in Aberdeen, Scotland, It was a removal, haulage and storage company, originating as a group of
porters working in Aberdeen Harbor.
The first documented consumer cooperative was founded [1] in a barely furnished cottage in Fenwick, East in
1769,Ayrshire, when local weavers manhandled a sack of oatmeal into John Walker's whitewashed front room and
began selling the contents at a discount, forming the Fenwick Weavers' Society.
A further example was in New Lanark, Scotland where Robert Owen (1771–1858) and other mill owners agreed to
limit their returns on invested capital and to use residual profits that accrued for the benefit of the entire
community (Royle, 1998).
In the decades that followed more Scottish cooperatives formed, including Lennoxtown Friendly Victualling
Society, founded in 1812. The focus of the Lennoxtown group was operation of the busy Lennox Mill, where tenants
of the Woodhead estate brought their corn to be ground. Another significant event of the group was the
establishment of the calico printing works at Lennoxmill on a site adjacent to the corn mill. The printing of calico
and other cotton cloth was soon established as a major industry in the area.

28. COOP BANK INTERNATIONAL HISTORY :1…….germany
Cooperative financial institutions originated in Germany in the mid-19th Century as philanthropic self-help
institutions designed to encourage workers to join resources and accumulate savings. Hermann Schulze-
Delitzsch (1808–83), a politician and judge, founded the first urban credit cooperative in 1850.
Friedrich Wilhelm Raiffeisen (1818–88), a mayor in Western Rhineland, formed the first rural credit cooperative
in 1864. Raiffeisen emphasised Christian principles as the motivation for the establishment while Schulze-
Delitzsch was mainly concerned with promoting economic self-sufficiency (Aschhoff, 1982; Guinnane, 2001,
Guinnane, 2002).
A principal purpose of early credit cooperatives was to draw outside funds into communities that needed them,
not as charitable donations, but as loans to be repaid (Isbister, 1994). The model quickly spread to other
countries in Europe. First to surrounding countries, namely Austria, Italy, Switzerland and the Netherlands then
west to Belgium, France and Spain and eventually north to Finland and Sweden (Birchall, 2013b; Colvin &
McLaughlin, 2014).3
It was the idea of Hermann Schulze (1808-83) and Friedrich Wilhelm Raiffeisen (1818-88) which took shape as
cooperative banks of today across the world. They started to promote the idea of easy availability of credit to small
businesses and for the poor segment of society. It was similar to the many microfinance institutions which have become
highly popular in developing economies of today.

29. COOP BANK INTERNATIONAL HISTORY :2………....UK,
IRELAND,EUROPE,
NORTH AM CANADA
German cooperative banking concept as adapted by Canadians inspired US credit unions that inspired UK , Irish credit
unions. In Britain the friendly society, building society, and mutual savings bank were earlier forms of similar
institutions.
At the beginning of the 20th Century, the financial cooperative concept spread from Europe to North America. The first
financial cooperative (caisse populaire) was established in 1900 in Canada (Quebec).
Alphonse Desjardins (1854–1921), first a journalist and then a parliamentary reporter, moved by the victimization of the
poor by loan sharks established the first caisse populaire (people's bank) in 1900 in his home town of Lévis in Quebec.
He proceeded to set up a further 150 over the next fifteen years (MacPherson, 1979; Mook, Maiorano, & Quarter, 2015).
Desjardins helped establish the first US credit cooperative in Manchester, New Hampshire, in 1908. This was based
around a Franco-American parish administered by Monsignor Pierre Hevey and it initially served French-speaking
immigrants to Manchester from the Maritime Provinces of Canada (Moody & Fite, 1984; Walter, 2006).

30. International origins:.......UK ,ROCHDALE
The cooperative movement began in Europe in the 19th century, primarily in Britain and France.
The industrial revolution and the increasing mechanisation of the economy transformed society and threatened the
livelihoods of many workers. The concurrent labour and social movements and the issues they attempted to address
describe the climate at the time. These movements were supported by governments of the respective countries. This
success was achieved due to the failure of the commercial banks to fund and support the needs of small business owners
and ordinary people who were outside the formal banking net. Cooperative banks helped overcome the vital market
imperfections and serviced the poorer layers of society.
By 1830, there were several hundred co-operatives.[3] Some were initially successful, but most cooperatives founded in
the early 19th century had failed by 1840.[4] However, Lockhurst Lane Industrial Co-operative Society (founded in 1832
and now Heart of England Co-operative Society), and Galashiels and Hawick Co-operative Societies (1839 or earlier,
merged with The Co-operative Group) still trade today.[5][6]
It was not until 1844 when the Rochdale Society of Equitable Pioneers established the "Rochdale Principles" on which
they ran their cooperative, that the basis for development and growth of the modern cooperative movement was
established.[7] though these principles helped spread cooperative movement in many parts of Europe, in British
Isles it came from the revivalist Christian movement and found high acceptance with working class and lower middle
class segments of society.

31. 0
The Pioneers
In 1844 a group of 28 artisans working in the cotton mills in the town of Rochdale, in the north of England, established
the first modern cooperative business, the Rochdale Equitable Pioneers Society. Primarily weavers, they faced
miserable working conditions and low wages and could not afford the high prices of food and household goods. They
decided that by pooling their scarce resources and working together they could access basic goods at a lower price.
Initially, there were only four items for sale: flour, oatmeal, sugar, and butter.
The Pioneers decided it was time shoppers were treated with honesty, openness, and respect, that they should be able to
share in the profits that their custom contributed to and that they should have a democratic right to have a say in the
business. Every customer of the shop became a member and so had a true stake in the business. With lessons from prior
failed attempts at co-operation in mind, they designed the Rochdale Principles, and over a period of four months they
struggled to pool one pound sterling per person for a total of 28 pounds of capital. On December 21, 1844, they opened
their store for only two nights a week. Within three months they expanded their selection to include tea and tobacco and
the business had grown so much that it was open five days a week. They were soon known for providing high quality,
unadulterated goods.

32. Rochdale Principles of Cooperative movement
Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out in 1844 by the Rochdale
Society of Equitable Pioneers in Rochdale, England and have formed the basis for the principles on which co-operatives
around the world continue to operate. The implications of the Rochdale Principles are a focus of study in co-operative
economics. The original Rochdale Principles were officially adopted by the International Co-operative Alliance (ICA) in
1937 as the Rochdale Principles of Co-operation. Updated versions of the principles were adopted by the ICA in 1966 as
the Co-operative Principles and in 1995 as part of the Statement on the Co-operative Identity.[1]
Original version (adopted 1937)
1. Open membership.
2. Democratic control (one person, one vote).
3. Distribution of surplus in proportion to trade.
4. Payment of limited interest on capital.
5. Political and religious neutrality.
6. Cash trading (no credit extended).
7. Promotion of education

33. ICA REVISION 1966 :Rochdale Principles of Cooperative movement
These have evolved somewhat over time and the International Co-operative Alliance (ICA), the official governing
body of cooperatives, now considers the first four of the Rochdale principles central to the governance of member
organizations with the last three deemed important but not vital. The fact of the matter is that many cooperatives
have very clear political or religious agendas. Most also use credit as a means of sale. The latter is critical in
contemporary market economies and is often the preferred means of payment. Also, a plethora of cooperatives
invest little in the domain of education
1. Open, voluntary membership.
2. Democratic governance.
3. Limited return on equity.
4. Surplus belongs to members.
5. Education of members and public in cooperative principles.
6. Cooperation between cooperatives

34. POST ROCHDALE UK
In 1863, twenty years after the Rochdale Pioneers opened their co-operative, the North of England Co-operative Society
was launched by 300 individual co-ops across Yorkshire and Lancashire.
By 1872, it had become known as the Co-operative Wholesale Society (CWS). Through the 20th century, smaller societies
merged with CWS, such as the Scottish Co-operative Wholesale Society (1973) and the South Suburban Co-operative
Society (1984).
1990s, CWS's share of the market had declined considerably and many came to doubt the viability of co-operative model.
CWS sold its factories to Andrew Regan in 1994.
2000, CWS merged with the UK's second largest society, Co-operative Retail Services.
Other independent societies are part owners of the Group. Representatives of the societies that part own the Group are
elected to the Group's national board. The Group manages The Co-operative brand and the Co-operative Retail Trading
Group (CRTG), which sources and promotes goods for food stores.

35. Coop international : ……..CANADA ,USA
German cooperative banking concept as adapted by Canadians inspired US credit unions that inspired UK , Irish credit
unions. In Britain the friendly society, building society, and mutual savings bank were earlier forms of similar
institutions.
At the beginning of the 20th Century, the financial cooperative concept spread from Europe to North America.
The first financial cooperative (caisse populaire) was established in 1900 in Canada (Quebec). Alphonse Desjardins
(1854–1921), first a journalist and then a parliamentary reporter, moved by the victimization of the poor by loan sharks
established the first caisse populaire (people's bank) in 1900 in his home town of Lévis in Quebec. He proceeded to set up
a further 150 over the next fifteen years (MacPherson, 1979; Mook, Maiorano, & Quarter, 2015). Desjardins helped
establish the first US credit cooperative in Manchester, New Hampshire, in 1908. This was based around a Franco-
American parish administered by Monsignor Pierre Hevey and it initially served French-speaking immigrants to
Manchester from the Maritime Provinces of Canada (Moody & Fite, 1984; Walter, 2006).
The mantle for credit cooperatives in the US was then taken up by Pierre Jay (1870–1949), the commissioner of Banks in
Massachusetts, and Edward Filene (1860–1937), a Boston businessman and philanthropist. These individuals promoted
and were instrumental in the passing of the Massachusetts Credit Union Enabling Act in 1909, the first credit union
legislation in the US. A further person of influence in the US was Roy Bergengren (1879–1955) who along with Filene
formed the Credit Union National Extension Bureau which was tasked with lobbying for credit union legislation at both
State and Federal level. In 1934, the Federal Credit Union Act was passed.

36. CASELAWS
1. SOMA SURESH KUMAR VS. A.P GOV 2013 10SCC 677
2. UPENDRA KUMAR V DON FINANCE CORPORATION AIR 2009 KAR 184
3. [SC GREATER BOM COOP BANK VS UNITED YARN TEX (P) LTD 2007 6SCC 236
4. A.P VARGHESE V KERALA STATE COOPERATIVE BANK AIR 2008 KER 91
5. VINAY KR SINGH VS JHARKHAND AIR2009 JHAR 90