Cooperative bank in_globalised_economy

CO-OPERATIVE BANK IN GLOBALIZED
ECONOMY

ECONOMY
CO-OPERATIVE BANK
IN
GLOBALISED ECONOMY

ECONOMY
A bank is a financial intermediary that deposits and channels those deposits into lending
activities, either directly or through capital markets. A bank connects customers with capital
deficits to customers with capital surpluses.
Banking is generally a highly regulated industry, and government restrictions on financial activities by
bank have varied over time and location. The current sets of global bank capital standards are called Basel II.
The oldest bank still in existence is Montedeipaschi di sienna, headquartered in sienna, Italy, which has been
operating continuously since 1472.
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...).
1. INTRODUCTION TO BANKING

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1.1 Meaning:-
A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly or through capital markets. A bank connects
customers that have capital deficits to customers with capital surpluses. The term bank is derived
from the French word Banco which means a Bench or Money exchange table. In olden days,
European money lenders or money changers used to display (show) coins of different countries in
big heaps (quantity) on benches or tables for the purpose of lending or exchanging.
1.2 Definition:-
The definition of a bank varies from country to country. See the relevant country page below for
more information.
Under English common law, a bank is defined as a person who carries on the business of
banking, which is specified as:
Conducting current account for his customers.
Paying cheques draw on him, and
Collecting cheques for his customers.
In most English common law jurisdictions there is a bill of exchange act that codifies the law in
relation to negotiable instruments, including cheques, and this act contains a statutory definition
of the term banker: banker includes a body of persons, whether incorporated or not, who carry on
the business of banking (section 2, interpretation).

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The types of bank are as follow:
Central bank
Nationalized bank
Commercial bank
Scheduled bank
Industrial bank
Off-shore bank
Co-operative bank
Housing development bank
Land development bank
CONCLUSION: my topic is co-operative bank hence areas of focus will be towards the minutes
of cooperative banks other cooperative financial institutions.
2. TYPES OF BANKS

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3.1 MEANING:-
According to the International Co-operative Alliance Statement of co-operative identity, a co-
operative is an autonomous association of persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly-owned and democratically-
controlled enterprise. Co-operatives are based on the values of self-help, self-responsibility,
democracy, equality, equity and solidarity. In the tradition of their founders, co-operative
members believe in the ethical values of honesty, openness, social responsibility and caring for
others.
3.2 DEFINATION:-
“A Co-operative bank, as its name indicates is an institution consisting of a number of individuals
who join together to pool their surplus savings for the purpose of eliminating the profits of the
bankers or moneylenders with a view to distributing the same amongst the depositors and
borrowers.”The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as a co-
operative registered as a co-operative bank in terms of the Act whose members –

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1. Are of similar occupation or profession or who are employed by
acommon employer or who are employed within the same businessdistrict; or
2. Have common membership in an association or organization, including a business, religious,
social, co-operative, labor or educational group; or
3. Have common membership in an association or organization, including a business, religious,
social, co-operative, labor or educational group; or
4. Reside within the same defined community or geographical area.
3.3 INTRODUCTION:-
Co-operative bank, in a nutshell, provides financial assistance to the
people with small means to protect them from the debt trap of themoneylenders. It is a part of
vast and powerful structure of co-operative institutions which are engaged in tasks of production,
processing, marketing, distribution, servicing and banking in India. A co-
operative bank is afinancial 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. These banks generally provide their members with a
wide range of banking and financial services (loans, deposits, bankingaccounts…). Co-
operative banks differ from stockholder banks by their organization, their goals, their Values and
their governance.
The Cooperative Banking System in India is characterized by a relatively comprehensive network
to the grass root level. This sector mainly focuses on the local population and micro- banking
among middle and low income strata of the society. These banks operate mainly for the benefit
of rural areas, particularly the agricultural sector.

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PRINCIPLES OF CO-OPERATIVE BANKS
Co-operative bank have 7 principles which are:-
 Voluntary and open membership
 Democratic member control
 Member economic participation
 Autonomy and independence
 Education, training and information
 Co-operation among Co-operatives
 Concern for Community.
OBJECTIVES OF STUDY
The Objective of the study of Co-operative Banking is to know the origin of Co-operative Banks in India.
To know the role of Co-operative banks in India.
To know the importance of Co-operative Banks in India.
To know the types of Co-operative Banks
To know the Development of Co-operative Banks

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3.5 OF CO-OPERATIVE BANKING IN INDIA:
Co-operative Banks are much more important in India than anywhere else in the world. The
distinctive character of this bank is service at a lower cost and service without exploitation. It
has gained its importance by the role assigned to them, the expectations they are supposed to
fulfill, their number, and the number of offices they operate. Co-operative banks role in rural
financing continues to be important day by day, and their business in the urban areas also has
increased phenomenally in recent years mainly due to the sharp increase in the number of
primary co-operative banks. In rural areas, as far as the agricultural and related activities are
concerned, the supply of credit was inadequate, and money lenders would exploit the poor people
in rural areas providing them loans at higher rates. So, Co-operative banks mobilize deposits and
purvey agricultural and rural credit with a wider outreach and provide institutional credit to the
farmers. Co-operative bank have also been an important instrument for various development
schemes, particularly subsidy-based programmers for poor. The Co-operative banks in rural areas
mainly finance agricultural based activities like:
Farming
Cattle
Milk
Hatchery
Personal finance The Co-operative banks in Urban areas
Finance in activities like:
Self-employment
Industries
Small scale units
Home finance
Consumer finance

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Finance some of the forward looking Co operative banks have developed sufficient core
competencies to such an extent that they are able to challenge state and private sector banks. The
exponential growth of Co-operative banks is attributed mainly to their much better contacts with
the local people, personal interaction with customers, and their ability to catch the nerve of the
local clientele. The total deposits and landings of Co-operative banks are much more than the Old
Private Sector Banks and the New Private Sector Banks.
3.6 MPORTANCE OF CO-OPERATIVE BANKING
Co-operative bank forms an integral part of banking system in India. This bank operates mainly
for the benefit of rural area, particularly the agricultural sector. Co-operative bank mobilize
deposits and supply agricultural and rural credit with the wider outreach. They are the mains
source for the institutional credit to farmers. They are chiefly responsible for breaking the
monopoly of moneylenders in providing credit to agriculturists.Co-
operative bank has also been an important instrument for variousdevelopment schemes,
particularly subsidy-based programmers for the poor. Co-operative banks operate for non-
agricultural sector also but their role is small. Though much smaller as compared to scheduled
commercial banks, co-operative banks constitute an important segment of the Indian banking
system. They have extensive branch network and reach out to people in remote areas. They have
traditionally played an important role in creating banking habits among the lower and middle
income groups and in strengthening the rural credit delivery system.

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3.7 EATURES OF CO-OPERATIVE BANKING
Co-operative Banks are organized and managed on the principal of co-operation, self-help, and
mutual help. They function with the rule of "one member, one vote". Function on "no profit, no
loss" basis. Co-operativebanks, as a principle, do not pursue the goal of profit maximization.
Co-operative bank performs all the main banking functions of deposit mobilization, supply of
credit and provision of remittance facilities.
Co-operative Banks provide limited banking products and are functionally specialists in
agriculture related products. However, co-operative banks now provide housing loans also.
Co-operative banks are perhaps the first government sponsored, government-
supported, and government-subsidised financial agency inIndia. They get financial and other help
from the Reserve Bank of India, NABARD, central government and state governments. They
constitute the"most favoured" banking sector with risk of nationalisation. For commercial banks,
the Reserve Bank of India is lender of last resort, but co-operative banks it is the lender of first
resort which provides financial resources in the form of contribution to the initial capital (through
state government), working capital, refinance.
Co-operative Banks belong to the money market as well as to the capital market. Primary
agricultural credit societies provide short term and medium term loans.
Co-operative banks are financial intermediaries only partially. The sources of their funds
(resources) are:
(a) Central and state government,
(b) The Reserve Bank of India and NABARD,
(c) Other co-operative institutions,
(d) Ownership funds and,
(e) Deposits or debenture issues.
Some co-operative bank is scheduled banks, while others are non-
scheduled banks. Cooperative Banks are subject to CRR and liquidityrequirements as other

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scheduled and non-scheduled banks are. However, their requirements are less than commercial
banks.
As said earlier, co-operative banks accept current, saving, and fixed or time deposits from
individuals and institutions including banks.
In the recent past, the RBI has introduced changes in interest rates of co-operative banks also,
along with changes in interest rates of commercial banks. The interest rates structure of co-
operative banks is quite complex. The rates charged by them depend upon the type of bank, the
type of loans, and vary from state to state.

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The origins of the co-operative banking movement in India can be traced to the close of
nineteenth century when, inspired by the success of the experiments related to the co-operative
movement in Britain and the cooperative credit movement in Germany, such societies were set up
in India. Now, Co-operative movement is quite well established in India. The first legislation on
co-operation was passed in 1904. In 1914 the
Maclagencommitteeenvisaged a three tier structure for co-operative banking viz.Primary
Agricultural Credit Societies (PACs) at the grass root level, Central Co-operative Banks at the
district level and State Co-operative Banks at state level or Apex Level. In the beginning of 20th
century, availability of credit in India,
moreparticularly in rural areas, was almost absent. Agricultural and relatedactivities were starved
of organized, institutional credit. The rural folk had to depend entirely on the money lenders, who
lent often at usurious rates of interest.
The co-operative banks arrived in India in the beginning of 20thCentury as an official effort to
create a new type of institution based on the principles of co-operative organization and
4. HISTORY OF CO-OPERATIVE BANKS

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management, suitable
for ProblemsPeculiar to Indian conditions. These banks were conceived assubstitutes for money
lenders, to provide timely and adequate short-term and long-term institutional credit at reasonable
rates of interest. The Anyonya Co-operative Bank in India is considered to have been the first co-
operative bank in Asia which was formed nearly 100 years back in Baroda. It was established in
1889 with the name Anyonya Sahayakari Mandali Co-operative Bank Limited, with a primary
objective ofproviding an alternative to exploitation by moneylenders for Baroda’s residents. In
the formative stage Co-operative Banks were Urban Co-operative Societies run on community
basis and their lending activities were restricted to meeting the credit requirements of their
members. The concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali
Committee in 1939which defined on Urban Co-operative Bank. Provisions of Section 5 (CCV)of
Banking Regulation Act, 1949 (as applicable to Co-operative Societies)defined an Urban Co-
operative Bank as a Primary Co-operative Bank other than a Primary Co-operative Society were
made applicable in 1966.With gradual growth and also given Philip with the economic boom,
urban banking sector received tremendous boost and started diversifying its credit portfolio.
Besides giving traditional lending activity meeting the credit requirements of their customers they
started catering to various sorts of customer’s viz.self-employed, small businessmen / industries,
house finance, consumer finance, personal finance etc.
EVALUTION OF CO-OPERATIVE BANK
The beginning cooperative banking in India dates back to about 1904, when official efforts were
made to create a new type of institution based on principles of co-operative organization &
management, which
wereconsidered to be suitable for solving the problems peculiar to Indianconditions.The
philosophy of equality, equity and self help gave way to the
thoughts of self responsibility and self administration which resulted ingiving birth of co-
operative. The origin on co-operative movement was one such event-arising out of a situation of
crisis, exploitation and sufferings. Co-operative banks in India came into existence with the
enactment of the Agricultural Credit Co-operative Societies Act in 1904. Co-operative bank form
an integral part of banking system in India. Under the act of 1904,a number of co-
operative credit societies were started. Owing to theincreasing demand of co-operative credit,

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anew act was passed in 1912, which was provided for establishment of co-operative central banks
by a union of primary credit societies and individuals.
Co-operative Banks in India are registered under the Co-operative Societies Act.
The cooperative bank is also regulated by the RBI. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

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1. Vinayagamoorthy A. (2007) – “Globalization and Co-operative Sector in India‟, Co-
operative Perspective, Journal of Co-operative Management, Vaikunth Mehta National
Institute of Co-op. Management, Pune, Vol.41, (Annual Issue), April 06-March 07.
Vinayagamoorthy A. (2007)1 – The present paper discussed the “Globalization and Co-
operative Sector in India”, globalization means mutual global co-operation by way of reducing
control and bureaucratic delays and steering the economy towards better market orientation. In
India, year 1991 marked the beginning of a new era in economic policy. To encourage
privatization, policy changes such as deregulation of state investment in infrastructure,
manufacturing etc. provided for new direction and affected almost all the sectors of the economy
including co-operative sector. But the reform measures under the economic policy, mainly
concentrated only in removing the fetters on private enterprises and in stimulating higher
economic growth by promoting industrial sector. At present there are 5.04 lack different types of
co-operatives with membership of 22 crores, covering 100% villages and 67% rural households.
Author stated that the transition from controlled economy to open competitive economy in the
name of globalization or liberalization has thrown a whole lot of challenges to the co-operative
sector. It was believed that co-operatives would not be able to survive in the face of stiff
competition posed by private sector. A study of functioning of co-operative societies in various
segments such as agricultural credit, marketing, fertilizer distribution, agro-processing, dairy and
sugar industries has shown that there are some strong and viable co-operatives. The current status
of co-operatives reflected both a risk and an opportunity. Author explained that in a developing
economy like India with huge deficits in terms of quality and quantity, the State has to accept the
primary responsibility of providing co-operative credit. Concern to socio-economical
consideration like-low living standard, incomplete and imperfect markets, it is the primary duty
of the government to ensure that easy access of co-operative credit. Author explained that it is the
LITERATURE REVIEW

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need of the hour that co-operative sector in the era of liberalized environment is to seize every
opportunity available to it. Thus, the future vision of co-operative movement will have to be
based on efficient parameters relating to promotion of excellence, improvement of operational
efficiency and strengthening of financial resource base.
1. Bedi R.D. (1971), „Theory, History and Practice of Co-operation‟, Loyal Book Depot,
Meerut, 1971
Bedi R.D. (1971)1 - In a comprehensive study of co-operative movement under the title “Theory,
History and Practice of Co-operation”, author studied not only Indian co-operative movement
but also gave some examples of success of other countries of the world where co-operative
movement flourished. The study is divided into four parts i.e. Theory of Co-operation, Co-
operation in Foreign Countries, History of Co-operative Growth and Co-operation in India. Part
first consists with economic organizations, co-operation; their definition, principles, types, co-
operation and State aid etc. Part second is dedicated to the success of co-operative movement in
foreign countries, history and practice in co-operation evolved in foreign countries is explained
deeply with illustration of various countries. This is useful for Indian Planners to formulate plans,
policies and practices for a sound development of co-operative movement. Part third consists of
History of Co-operative Growth in India, various study groups and committees, their suggestions
were studied in this part of the book. As the goal of democratic socialism, Indian planners placed
before themselves, co-operation also secured its rightful place in every sphere of the Indian
economy and made considerable progress. Finally author examined the progress of co-operative
movement, managerial and operational aspects of the co-operative organizations at all levels.
Author has given stress on the programmer of co-operative training and education, supervision
and inspection of co-operatives and community development programmer. The study shows the
correct path to follow on the previous historical background which is necessary for the
sustainable development of the co-operatives in India.
1. Saxena K.K. (1974), “Evolution of the Co-operative Thought”, Somaiya Pub.Pvt.Ltd.,
New Delhi, 1974.
Saxena K.K. (1974)1 - “Evolution of the Co-operative Thought” is a comprehensive study. It is a
systematic attempt to understand and evaluate the theoretical consideration which influenced the

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evolution of co-operative thoughts. Author analyzed various trends which emerged as a result of
the influence on economic and social factors. It is also illustrated the expansion of co-operatives
from the developed and developing countries. In the study author focuses the dynamic character
of the principle of co-operation and assigns co-operation the status of an emerging economic
system. This book is divided into three parts. Part first is concerned with the beginning and the
foundation of the co-operation and Rochdale co-operative philosophy. Part second is concerned
on emergence of co-operatism as an economic system and needs for reformulation and for that
purpose author emphasized that co-operators should build up their own political philosophy.
Pattern of development discussed in details under five chapter i.e. economic progress through co-
operation, social aspects of co-operation, political philosophy of co-operation, co-operation and
State action, management development, importance of education, training and leadership. Saxena
explained that co-operatives have to recognize that they cannot eliminate all competition. The
competition from private enterprise and large capitalistic concerns is there and is bound to
increase in future as they have taken all the advantages of modern technology. “The capitalist
enterprise will tend to continue its evolution towards oligopoly and monopoly, not in the national
markets only, but on the international plane in new multi-national economic units called free
trade areas or economic communities.” This again underlined the need for greater international
co-operation amongst the co-operatives to make its greatness manifest and established its
efficiency as against the large monolithic capitalist enterprises. For this challenge international
co-operation among co-operatives is most important.

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INTRODUCTION
The payment of Bonus Act provides for payment of bonus to persons employed in certain
establishments of the basis of profits or on the basis of production or productivity and for matters
connected therewith. It extends tothe whole of India and is applicable to every factory and to every
other establishment where 20 or more workmen are employed on any day during an accounting year
ELIGIBILITY FORBONUS
Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind of work
whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year
if he has worked for at least 30 working days in that year.
[Note: This ceiling of Rs. 3,500 has been revised to Rs. 10,000 with effect from
November,
2007.]
However employees of L.I.C., Universities and Educational institutions, Hospitals, Chamber of
Commerce, R.B.I., IFCI, U.T.I. Social Welfare institutions are not entitled to bonus under this Act.
DISQUALIFICATION FOR BONUS
Notwithstanding anything contained in the act, an employee shall be disqualified from receiving
bonus, if he is dismissed from service for fraud or riotous or violent behavior while in the premises of
the establishment or theft, misappropriation or sabotage of any property of the establishment.
MINIMUM/MAXIMUM BONUS PAYABLE MINIMUM BONUS
The minimum bonus which an employer is required to pay even if he suffers losses
during the accounting year or there is no allocable surplus is 8.33 % of the salary or wages during
the accounting year, or
Rs. 100 in case of employees above 15 years and Rs 60 in case of employees below 15 years, at the
beginning of the accounting year, whichever is higher.
MAXIMUM BONUS
payment of bonus under the payment of bonus act 1965
FIELD STUDY

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If in an accounting year, the allocable surplus, calculated after taking into account the amount
˜set on or the amount ˜set off exceeds the minimum bonus, the employer should pay bonus in
proportion to the salary or wages earned by the employee in that
accounting year subject to a maximum of 20% of such salary or wages.
TIME LIMIT FOR PAYMENT
The bonus should be paid in cash within 8 months from the close of the accounting year or within one
month from the date of enforcement of the award or coming into operation of a settlement following
an industrial dispute regarding payment of bonus. However if
there is sufficient cause extension may be applied for.
CALCULATION OF BONUS
The method for calculation of annual bonus is as follow:
Calculate the gross profit profit in the manner specified in
i. First Schedule, in case of a banking company, or
ii. Second Schedule, in any other case.
Calculate the Available Surplus.
Available Surplus = A+B, where A = Gross Profit “Depreciation admissible u/s 32 of the
Income tax Act - Development allowance - Direct taxes payable for the accounting year
(Calculated as per Sec.7). Sums specified in the Third Schedule.
B = Direct Taxes (calculated as per Sec. 7) in respect of gross profits for the immediately Preceding
accounting year “Direct Taxes in respect of such gross profits as reduced by the amount of bonus, for
the immediately preceding accounting year.
Calculate Allocable Surplus
Allocable Surplus = 60% of Available Surplus, 67% in case of foreign companies.
Make adjustment for Set-on and Set-off.
For calculating the amount of bonus in respect of an accounting year, allocable surplus is computed
after considering the amount of set on and set off from the previous years, as illustrated in Fourth
Schedule. The allocable surplus so computed is distributed amongst the employees in proportion to
salary or wages received by them during the relevant accounting year. In case of an employee
receiving salary or wages above Rs. 2,500 the bonus payable is to be calculated as if the salary or
wages were Rs. 2,500 p.m. only.
DUTIES/RIGHTS OF EMPLOYER DUTIES
Tocalculate and pay the annual bonus as required under the Act

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Tosubmit an annual return of bonus paid to employees during the year, in Form D, to the
Inspector, within 30 days of the expiry of the time limit specified for payment of bonus.
Toco-operate with the Inspector, produce before him the registers/records maintained, and such
other information as may be required by them.
Toget his account audited as per the directions of a Labour Court/Tribunal or of any such other
authority.
RIGHTS
An employer has the following rights:
Right to forfeit bonus of an employee, who has been dismissed from service for fraud, riotous or
violent behaviour, or theft, misappropriation or sabotage of any property of the establishment.
Right to make permissible deductions from the bonus payable to an employee, such as,
festival/interim bonus paid and financial loss caused by misconduct of the employee.
Right to refer any disputes relating to application or interpretation of any provision of the Act, to
the Labour Court or Labour Tribunal.
RIGHTS OF EMPLOYEES
Right to claim bonus payable under the Act and to make an application to the
Government, for the recovery of bonus due and unpaid, within one year of its becoming
due.
Right to refer any dispute to the Labour Court/Tribunal Employees, to whom the
Payment of Bonus Act does not apply, cannot raise a dispute regarding bonus under the Industrial
Disputes Act.
Right to seek clarification and obtain information, on any item in the accounts of the
establishment.
RECOVERY OF BONUS DUE
Where any bonus is due to an employee by way of bonus, employee or any other person
authorised by him can make an application to the appropriate government for recovery of the money
due.

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Establishments
Co-operative bank performs all the main banking functions of deposit mobilization, supply of
credit and provision of remittance facilities.
Co-operative Banks belong to the money market as well as to the capital market.
Co-operative Banks provide limited banking products and
arefunctionally specialists in agriculture related products. However, co-operative banks now
provide housing loans also.
UCBs provide working capital loans and term loan as well.
The chief functions of Co-operative banks are:-
 To attract deposit from non-agriculturist,
 To use excess funds of some societies temporarily to make up for shortage in another. To
supervise and guide affiliated societies.
The basic principles on which a Co-operative bank works are:-
 A co-operative character of activities and trait of mutual aid of credit granted.
 Catering for collective organizations and their members.
 Restriction on the number of individual votes.
As a result, during 2007-08, the Primary Cooperative Agriculture and Rural Development Banks
have again started lending for the Non-Farm Sector including Jewel Loans.
 Aiming at high rates on deposits and low rates on lending.
 Limitation of dividends out of profits and bonus to depositors and borrowers or grants to cultural
or co-operative Endeavour. These banks are constituted of voluntary association, self-help and
mutual aid, one share one vote and non-discrimination and equality of members. The co-
operative banks are the organizations of and for the People.
2. STRUCTURE OF CO-OPERATIVE BANKING
SYSTEM

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There is three tier structure of co-operative banking. The state co-operative bank is the apex bank
at the state level providing credit and expanding credit. The district central co-operative bank

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provides and expands credit at the district level and the primary agricultural co-operative credit
bank provides and expands credit to farmers at the rural levels.
Co-operative movement is quite well established in India. The first legislation on co-operative
was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for co-
operative banking viz. primary agricultural credit societies (PACs) at the grass roots level, central
co-operative banks at the district level and state co-operative bank at state level or apex level. The
first urban co-operative bank in India was formed nearly 100 years back in Baroda.
Co-operative institutions are engaged in all kinds of activities namely production, processing,
marketing, distribution, servicing and banking in India and have vast and powerful
superstructure. Co-operative banks are important cogs in this structure.
Co-operative banks operate both in urban and non urban centers. The urban areas are served by
the primary (urban) co-operative banks (PCBs/UCBs) where as the rural areas are largely served
by two sets of institutions, the PACs and LDBs, dispensing and long term credit, respectively.
UCBs have a three tier structure with state co-operative banks (SCBs) at the apex level, the
district central co-operative banks (CCBs) at the intermediate and the primary agricultural credit
societies (PACS) at the grass root level (refer table II).Under the long term credit structure, state
co-operative agriculture and rural development banks (SCARDBs) are at the apex level and the
primary co-operative agriculture and rural development banks (PCARDBs) are at the base level.
UCBs are regulated by the RBI as well as the registrar of co-operative societies of the state where
they are located. District and state level co-operative banks also report to the national bank for
agriculture and rural development (NABARD).

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ORGANIZATIONAL STRUCTURE OF THE CO-OPERATIVE CREDIT
INSTITUTIONS

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The term globalized is often associated business. It is a process of
development of the world into a single integrated economic unit. In India, globalized refers to the
opening of the gates of the economy for mutual global cooperative by way of reducing control
and bureaucratic delays and steering the economy towards better market orientation.
Globalization started from the 19th century and the period between 1870 to 1913 has been
considered as first phase and the period from middle of 20th century is viewed as the second
phase. The world human development report, 1999 stats that the most significant feature of the
current phase is market economic policies spreading around the world with greater privatization
and liberalization then in earlier decades.
3. INTRODUCTION TO GLOBALISATION

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Globalization impact the banking industry in one or more of the following ways:
Greater and intensive competition
Focus on efficiency, productivity and cost reduction
Superior risk management system and practices
Strengthening services quality and delivery and cross selling of products/services.
Product innovation as an integral part of the retail banking revolution.
Up gradation of technology infrastructure.
Competency building and investment in human capital as a catalyst for transformation.
Consolidation within the financial system.
Opportunity to increase size and scale to gain dominance in the local market and penetrate into
the global market.
Transparent, disclosure and market discipline
It is, therefore for Indian banks to address all the above issues, if they aspire to play a role in the
global arena.
IMPACT OF GLOBALISATION ON INDIAN BANKS

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It is a well-known fact that the year 1991 marked the beginning of a new era in economic policy
of our country. To encourage privatization, policy changes such as deregulation of state
enterprise, reduction in tariff barriers, creation of appropriate climate to promote private
investment in infrastructure, manufacturing etc. provided for new direction and affected almost
all the sectors of the economy, including co-operative sector. But the reform measures under the
new economic policy, mainly concentrated only in removing the fetters on private enterprises and
in stimulating higher economic growth by promoting industrial sector. The rural and agricultural
sector remained somewhat neglected and also the effect of economic reforms on the economic
fortunes of the common people was overlooked. Throughout the reform decade i.e., from 1991 to
2000, the role and relevance of the cooperative sector remained on the background, in spite of its
predominant position in various fields of our national economy.
There are at present 5.04 lakh co-operative societies of different type with a membership of 22
crores, covering 100 percent villages and 67 percent rural households. The transition from
controlled economy to open competitive economy in the name of globalization or liberalization
has thrown a whole lot of challenges to the cooperative sector. It was believed that cooperatives
would not be able to survive in the face of stiff competition posed b private sector. In contrast,
there were still few, who regarded co-operation as a dynamic enterprise, which had been able to
survive for around 150 years. A study of functioning of cooperative societies in various
segments such as agricultural credit, agricultural marketing, fertilizer distribution, agro-
processing, dairy and sugar industries has shown that there are some strong and viable co-
operatives. But at the same time one must realize the fact that the co-operative structure, as it
emerged, has shown the following weaknesses.
IMPACT OF GLOBALIZATION IN CO-
OPERATIVE BANKS

ECONOMY
Weak structure at primary level
Lack of responsiveness from federal organizations towards the needs of their member
organizations.
Working of different co-operatives in isolation rather than unified system
Lack of participation of user-members
Some of the other weaknesses are lack of professional management, lack of adequate
infrastructure, lack of capability to withstand competition, over-dependence on government for
financial assistance and restrictive provisions of cooperative law. Some of these main
weaknesses observed in the co-operative movement; have to be tackled on war-footing in the
years to come, in the best interest of the survival of cooperative movement.
The current status of co-operatives reflects both a threat and an opportunity. It is a threat, because
cooperatives have failed, to a large extent, in delivering efficient goods and services unlike the
private sector and an opportunity, because the new economic scenario will offer enough
opportunities, which could be effectively utilized by the co-operatives to prove their case of
continuation. Some of the new challenges to be faced by co-operatives in the new millennium
are briefly categorized as follows:
Weaknesses:

ECONOMY
A borderless system of economic activity is coming into being. Big multinational companies will
take full advantage of the borderless world, without hindrance of national boundaries to
undertake large-scale economic activities, which will dominate the world market. Such a new
economic scenario, presented a threat to cooperative movement’s ability to survive.
Since the government now has withdrawn support, due to changed economic priorities, many co-
operatives encounter difficulties in generating their own resources and have to completely
reorganize themselves to survive and succeed in a competitive environment, without depending n
any state support.
At present, there are about 207 national and 8 international organizations, which are the backbone
of ICA and there are about 754 million individuals spread over 90 countries of Asia, Africa,
Europe and America, who are members of ICA. With such a huge and diversified structure
around the world, one cannot question the ability of the co-operatives to survive and succeed, but
what needs to be deliberated upon is, the new direction towards which cooperative movement
should move with firm determination.
Internal and structural weaknesses of cooperative institutions, combined with lack of proper
policy support have neutralized their positive impact and resulted partly in the mismanagement,
inefficiency and corruption in the financing of cooperatives. This has necessitated the need for a
clear – cut policy on co-operatives, to enable sustained development and growth of healthy and
self-reliant cooperatives. Keeping in view the challenges ahead, cooperatives have to reorient
New Challenges

ECONOMY
their strategies, in the changed economic environment of our economy. Some of the strategies to
reorient and renew their development thrust in the new environment are:
To face the challenges in a liberalized economy, the co-operatives have to reorient their structural
functioning and management. It may include:-
 Enhancing the competitive strength in cooperatives by their merger and division, wherever
necessary.
 ii. Non-viable societies that do not have scope for revival should
be liquidated.
 iii.Ensure active participation of members in their day-today
business and de-listing or removing the inefficient or inactive
members from membership.
 iv. Federal organizations of cooperatives must give sufficient
financial and other support to their constituent societies.
With the growing diversification and size of operations in cooperatives, there is a need for
constituting two separate boards namely, policy-board, consisting of elected representatives of
the members and executive-board, consisting of senior executives headed by the chief executive,
with clear demarcation of areas of their powers and functions. In other words, besides elected
cooperators, there should be a provision to co-opt outside experts in areas, requiring high degree
of specialization or technical and managerial expertise.
Large-scale enterprises in the co-operative sector may require huge funds. To mobilize more
funds, cooperatives may enter capital market and mobilize funds by means of deposits,
debentures etc. At the same time, cooperatives must evolve deposit-insurance scheme, to instill
Development Thrust

ECONOMY
confidence among the depositors, both in urban and rural areas. Effective deposit mobilization
will help them to build their own lendable resources, for profitable and diversified lending. They
have to adopt efficiency parameters, in terms of cost-effectiveness and a reasonable return on
investment, if they have to survive in the competitive atmosphere.
According to some experts, there are a number of agricultural commodities like rice, sugar, fruits,
vegetables; spices etc. that have strong competitive advantage in export markets. This has
positive implications for agricultural cooperatives. Moreover, some cooperative thinkers
interpreted that the historical attributes of cooperatives namely, countervailing power, access to
capital on favorable terms, scale-economies and income improvement, provide them with
necessary strength, to overcome the challenges of a competitive market.
Intensified enrolment drives to cover maximum number of small and middle sized agrarian
producers, processors etc., intensified linkages with NGOs or Self-help Groups or panchayats and
intensified efforts on the part of the government of India and promotional bodies like NCDC to
attract funds and other forms of assistance from international agencies like world bank, Asian
development bank, EEC, FAO, ILO, etc. for specific development projects in the cooperative
sector, will go a long way in strengthening cooperatives, in order to complete in the new
economic environment.
For the development of rural sector, which is still very largely in the Informal spheres, the
parameters of the new system do not apply. In such cases, we should indentify:
 The areas where the cooperatives cannot penetrate or cover,
 ii. The areas where the cooperative sector has a comparative advantage, and
 The areas where cooperatives can build up strategic alliance with private sector, public sector and
International agencies. Such an understanding will greatly help in the vertical and horizontal
integration of support services for agro-industrial production processes.

ECONOMY
For building up professionalism in the management of the cooperative enterprises, it is necessary
on the one hand to upgrade the quality of the staff with latest developments and on the other
hand, develop proper and cordial relationship between the managers and members of board of
directors. Proper and continuous training must be provided to both cooperative leaders and
profession executives.
It is only now that cooperatives have an opportunity to thrive for years, despite their relevance
restricted by a hostile legal and policy environment fell far short of their promise. The extensive
powers conferred on the registrar of cooperative societies, are a drag on the efficiency of the
cooperative system. The dawn of the new era began in 1995, when Andra Pradesh legislature
passed the AP mutually aided cooperative societies Act, 1995. by the end of 1999, three more
states viz., Bihar, Jammu and Kashmir and Madhya radish have enacted similar parallel acts for
self-reliant cooperatives. Maharashtra, Tamil Nadu, Orissa, Punjab and Himachal Pradesh are
considering similar laws. Recently, Karnataka state legislature has passed & implemented
Souharda cooperative society Act since 2000. It is this, changing environment that provides the
opportunity for genuine cooperatives, to arise and compete. Parallel-laws for self-reliant
cooperatives; provide a legal environment that allows cooperatives to function as autonomous,
democratic, member-sensitive, member-controlled, self-reliant enterprises.

ECONOMY
It was found that the banks with most ATMs have gained priorities in the minds of
the customers. Different bank have different schemes for different age groups.
Some banks are giving privilege to senior citizens, while others to child group etc.
Now Co-operative bank also such schemes targeted to different age group. The
study has shown that the customers want better branch network so that they can
operate their accountfrom different city also.
Globalization effect the co-operative bank in many way as it increase the
competition level among the banks and even introduce the new innovative
technology like core banking solution, SMS facilities, and ATM facilities, ABB
facilities, but it does not allow the bank to do the deal in foreign exchange
transactions.
Advertising is not appropriate, as many people are not aware of jai hind
Cooperative Bank. Therefore Hoarding and Boards should be displayed at various
prime locations in the city. Timely payment of salary and Promotion of employees
will boost their morale. All the complaints of Customer should be deal in proper
manner because it is the customer who will give good or bad mouth about bank
services. Non maintenance & other charges which are very high as compared to
FINDING AND ANALYSIS

ECONOMY
other Banks should be reduced. Existing customer should always be informed
about the new product.
I can say that Globalization effect the co-operative bank in many way as it increase
the competition level among the banks and even introduce the new innovative
technology like core banking solution, SMS facilities, and ATM facilities, ABB
facilities, but it does not allow the bank to do the deal in foreign exchange
transactions.
Cooperative banks both urban and rural have created a separated niche for
themselves. Cooperative banks play a significant role in creating habits among
lower and middle income groups and in rural credit delivery through their extensive
networks. Moreover, the financial health of some UCBs has deteriorated due to
high level of nonperforming assets while some other are facing financial problems

ECONOMY
such as low capital base, lack of professionalism in conduct and management, poor
recoveries, lack of funds for fresh development, mounting over dues, inadequate
internal controls and non-adherence to norm s and regulations and low levels of
diversification in business operations.
Global competition is a complex dynamic process which cannot characterize
competitive capabilities amongst nations particularly when economics theory and
logic rely in restrictive assumptions which have evaporated with open global
economy, which toady, is the reality of changing times. If cooperative banks have
to capitalize on this opportunity, they have to become globally competitive, be it,
cost, quality, delivery or any other business parameter.
Some of the Innovations needed for the resurgence in the cooperative movement
are:-
1) Change of mindset
2) Human resource development
3) Use of information technology
4) Adoption of innovative process technology for manufacturing
5) Value addition to the services and the products
6) Leadership with vision, dedication, commitment and innovative approach
to organize the cooperatives. The innovations will help in transforming the whole
system of cooperative management for betterment and cooperatives must not
lag behind in keeping pace with the changing socio-economic environment.

ECONOMY
CASE STUDY ON
AMBARNATH
JAI HIND
CO-OPERATIVE BANK LTD
Annexure

ECONOMY
A Bank is established in balaghat city in the year 1986 by Mr. Vilas Desai and his friend to
provide basic financial assistance & Banking services to common people. Initially the intention
behind the opening of a Bank was to rescue the workers of various Industries, Municipalities &
common people from the clutches of Savkar and money lenders. Bank was successful in this
endeavor.
Now Bank has crossed the Silver Jubilee Year. In the history of 26 years total business of the
Bank has reached to Rs.290 Crores by collecting a Deposit amounting to Rs.195 Crores and
disbursing loans amounting to Rs.95 Crores. Bank is having a Network of 9 branches & one
Extension counter.
1.1 INTRODUCTION
1.2 BUSINESS

ECONOMY
To get prompt & excellent service to its customers the Bank has adopted “Core Banking
Solution”. By which the Bank provides services of “Any Branch Banking” and “SMS
Banking”.
Bank has also taken a historic step for sharing of other banks ATMs so that at more than 14000
ATMs will be made available to its customers across the country.
Bank also provides various services with the help of modern Technology such as RTGS / NEFT,
Foreign remittance, Centralized Clearing, Cheque Book Printing etc.
1.3 TECHNOLOGY
1.4 AWARDS:

ECONOMY
Most remarkable thing of the Bank is that Bank has been awarded
as Excellent Bank in the year 2004-2005 by prestigious award
of “Padma bhushan Vasantdada Patil Nagari Sahakari
Bank”. Besides that bank has been awarded by various Excellency
awards by “Banking Frontiers” for last 4 consecutive years.
The Banking operations and functions of the
Bank has been Audited for getting ISO
9001-2008 Certification & Bank has
received ISO Certificate. Now Bank is “ISO
Certified Bank”.
1.5 ISO CERTFICATION
1.6 SPECIAL

ECONOMY
Founder Chairman of the Bank Mr. Vilas Desai is a renowned personality in the Co-Op
Sector & is holding prestigious posts in the co-operative Banking Sector as follows:
Chairman: Kokan Nagri Sahakari Bank’s Association, Kalyan.
Director: Maharashtra State Urban Bank’s Federation Ltd.Mumbai.
Director: National Federation of Urban Co-Op Banks. New Delhi
Member: TAFCUB, Goa
2. PERSONAL BANKING EVOLUTION
AND FACILITIES
2.1. DEPOSIT

ECONOMY
Saving deposit
Who can open:-Saving Bank Account is opened by Individuals, HUF &
Institutions/Organizations other than profit making organizations/institutions.
Minimum Balance:-Rs.500/- for without Cheque Facility Rs.1000/- for Cheque Facility
Rate of Interest:-4% p.a. Daily basis on Credit Balance
Facility:-Free Personalized Cheque Book, Free SMS Banking, Free Any Branch Banking, Free
ATM Cards
Current Deposit
Who can open:- Any individual in his/her name, Any individual jointly with other(s),Sole
Proprietorship, Partnership, Joint Stock Companies, Club and Association
Minimum Balance:-Rs.2000/-
Rate of Interest:-No Interest will be paid on Balance of Current Accounts.
Interest will be available on Flexi Deposit scheme connected to Current Account.
Facility:-Free ATM Card, Personalized cheque book, Statement by Email.

ECONOMY
Daily Deposit
Who can open:-Any Individual, Professional
Businessman in the name of Firm , Proprietary concern etc
Minimum Balance:-Account holder should deposit Minimum Rs.10/- or in multiple of Rs.10/-
in the account on daily basis & he will get the deposited amount along with interest on maturity.
Daily Agent duly appointed by Bank will collect deposit on daily basis.
Period of Deposit:-1 year or 2 years
Rate of Interest:-6% p.a. for 1 year & 7% for 2 years
Fixed Deposit
Who can open:-Individual /HUF, Proprietary concern, Partnership Firm, Company.
Rate of Interest:-Interest Rates depend on period of loan.

ECONOMY
Sankalp Siddhi
Who can open:-Individual /HUF, Proprietary concern,
Partnership Firm, Company
Rate of Interest:-As per the Interest rate of other Term Deposit.
Recurring Deposit
Who can open:-Individual, HUF , Firm ,Proprietary concern ,Company
Minimum Balance:-Account holder should deposit Minimum Rs.50/- or in multiple of Rs.50/-
in the account on Monthly Installments
Period of Deposit:-12 Months & above
Rate of Interest:-As per the Interest rate of other Term Deposit
Loan Facility:-Loan Facility available. Premature withdrawal is possible with certain conditions
Lakhapati Deposit

ECONOMY
This is a Special type of Recurring Deposit Scheme. After depositing a particular sum on
monthly basis the account holder will get an equivalent amount of Rupees One Lac after certain
period.
Monthly Interest Payable
After Investing certain amount in this scheme account holder will get Monthly Interest. There are
two types of scheme in MIP:-
Months scheme MIP interest rate senior citizen
Months scheme MIP interest rate individual & others.
Quarterly Interest Payable
After Investing certain amount in this scheme account holder will get Monthly Interest. There are
two types of scheme in QIP:-
Months scheme QIP interest rate senior citizen.
Months scheme QIP interest rate individual & others.
2.2) LOANS

ECONOMY
Personal Surety Loan
Purpose:- House Repairing/Renovation, Repayment of Debts, Purchase Home Appliances,
Religious Ceremonies, Purchase Gold Ornaments.
Max. Loan Amount:- Rs. 1,00,000/- Maximum
Rate of Interest: - 15% p.a.
Guarantors: - Two/Three Guarantors
Collateral: - LIC Policies/NSC/ FDRs.
Processing Fee: - 1.15 % on Loan Amount
Pre-Repayment Charges: -No Pre-payment charges.
Mode of Repayment: -Postdated cheques of Salary A/C or Business A/c, Standing Instruction

ECONOMY
Salary Deduction Loan
Purpose:-House Repairing/Renovation, Repayment of Debts, Purchase Home Appliances,
Religious Ceremonies, Purchase Gold Ornaments.
Max. Loan Amount:-Rs. 1,00,000/- Maximum.
Period:-yrs to Max. 5yrs.
Rate of Interest:-15% p.a.
Security :-Not Applicable.
Guarantors:-Two/Three Guarantors.
Collateral:-LIC Policies/NSC/ FDRs.
Processing Fee:-1.15 % on Loan Amount
Pre-Repayment Charges:-No Pre-payment charges
Mode of Repayment:-Salary Cheques or Installment Deduction from Employer
Loan against Fixed Deposit Receipt

ECONOMY
Max. Loan Amount:-85% of Principal Amount of FDRs
Period: -As per the duration of FD Receipts
Rate of Interest:- 2 % more than Rate of interest of FD.
Security :- Lien On Original FDRs.
Guarantors:-No Guarantors
Pre-Repayment Charges:-No Pre-Payment Charges
Processing Fee:-no processing fees.
Vehicle Loan
Purpose:- Purchase Two Wheelers, Four Wheelers or Commercial Vehicles (Truck, Cranes etc.)

ECONOMY
Margin: -25%.
Period: -Min. 2yrs to Max.5Yrs.
Rate of Interest: -Personal Use: 12% p.a. Commercial Use: 14.50% p.a.
Security :-Hypothecation against Vehicle
Guarantors:-2 to 3 Guarantors
Collateral: -Immovable Property/LIC Policies/NSC/ FDRs.
Processing Fee:-1.15% on Loan Amount
Pre-Repayment Charges: -No Pre-payment charges.
Mode of Repayment: -Postdated cheques of Salary A/C or Business A/c, Standing Instruction or
Deduction of Loan Installment directly from salary by company.
Loan against Gold
Max. Loan Amount:-70% of Quotation
Period:-2 Yrs.
Security: -Pledge of Gold Ornaments.

ECONOMY
Pre-Repayment Charges:-No Pre-Payment Charges.
Housing Loan
Purpose:- Purchase Flat/Bungalow or Construction of Bungalow
Max. Loan Amount:- Max.20.00 Lakh
Period :-From 6yrs to Max.20Yrs.
Rate of Interest:-6 Yrs – 9.5% p.a. , 20Yrs – 11% p.a.
Security:-Mortgage of Flat to be purchased Mortgage of Bungalow to be purchased/constructed.
Guarantors:-2 to 3 Guarantors.
Collateral:-Falt / Bungalow, LIC Policies/NSC/ FDRs
Mode of Repayment:-Post dated cheques of Salary A/C or Business A/c, Standing Instruction or
Deduction of Loan Installment directly from salary by company

ECONOMY
Swayamsiddha Loan
Purpose:-To start a new business or expansion of existing business
Eligibility: -Women only.
Max. Loan Amount:- Rs.5000/-
Period: 2 years
Security :- No Security
Guarantors:- No Guarantors
Collateral:-No Collateral Security
Processing Fee:- No Processing Fees
Mode of Repayment:- Cash or Standing Instruction.

ECONOMY
NSC /LIC Loan
Max. Loan Amount:- 70% of Principal Amount of NSCs/KVP or Surrender Value of LIC Policies
Period :- 2 to 5 Yrs.
Rate of interest:- 15% p.a.
Security :- Lien On Original NSCs/KVP or Assignment on LIC Policies
Pre Repayment Charges:-No Pre-Payment Charges
Vidyadan Education
Loan

ECONOMY
Purpose :- For Higher Education (Degree/Diploma/Professional Course)
Max. Loan Amount:-As per RBI Directives. Study in India 10 Lakh and Study in Abroad 20
Lakh.
margin:-25% of Total Educational Fees (includes books & other accessories)
Rate of Interest:-Simple Interest will be charged @ 12% p.a. till the completion of the education
of the student.
After joining service / employment or six month of completion of education, whichever is earlier,
the interest will be charged @ 15% p.a.
Security :-Security, 2 / 3 Guarantors. Above Rs.1.00 Lakh - 2 / 3 Guarantors,
Collateral:-Immovable Properties /LIC Policies/NSC/ FDRs
Mode of Repayment:-Post dated cheques of Salary A/C or Business A/c, Standing Instruction or
Deduction of Loan Installment directly from salary by company.
Ambar Gold Purchase Loan

ECONOMY
Purpose:- Purchase Gold
Ornaments
Max. Loan Amount:-Up
to Rs.5 Lakh.
Period:- 2 to 5 Yrs
Rate of Interest:-12% p.a
Security: -Pledge of Gold Ornaments which will be purchased.
Pre-Repayment Charges:-No Pre-Payment Charges
Business Loan
Purpose: -To start a new business or expansion of existing business, purchase plot for factory,
construction of factory shed, Working Capital Limit.
Period:-5 Years to 7 Years
Rate of Interest: -14.50%.
Security :-

ECONOMY
 Land & Building Loans:- Mortgage of Plot along with Factory Shed/Office/Shop
 Plat & Machinery Loans:- Mortgage of Plot along with Factory Shed/Office/Shop/Residential
Flat/Hypothecation of Machinery to be purchased.
 Loan Against Stock:-Hypothecation of Stock, Debtors, Furniture & Fixtures etc.
Guarantors:-2 to 3 Guarantors
Collateral:- LIC Policies/NSC/ FDR's/Residential Flat/Plot/Factory Shed/Office/Shop
LOCKERS
For the Safety of Customer Ambarnath Jai-Hind Co-Op.Bank Ltd., has provided Locker Facility in
all its Branches.
3.3) OTHER SERVICES

ECONOMY
FRANKING
Franking facility is available in our Ambernath East Branch.
4. SILENT FEATURES
Core Banking

ECONOMY
3 ‘A’ or ‘AAA’ Structure (A Anywhere, A. Any Time, A. Any Branch Banking facility to server
about more than 40 thousand customer.
RTGS & NEFT facility from MSC Bank, ICICI Bank & IDBI Bank.
Tie up with Bajaj Allianz Insurance Company.
Additional Interest on Deposits to Senior Citizens.
"No Frill" Saving Accounts with Just Rs.10/- as Minimum Balance fulfilling "Financial
Inclusion".
ATM facility at selected branches and also in Process of Tie up with Bank of India for ATM
sharing network.
ISO 9001:2008 Certificates all Branches.
Loans & Advances extended to Personals Loans, Salary Deductions, Traders, Businessmen,
Housing Loans, SSIs, Educational Loan, Gold Loan, Loan against NSCs, KVPs etc.
Housing Loans up to 20 Lakh.
Education Loan: - As per RBI Directives. Study in India 10 Lakh and Study in Abroad 20 Lakh.
SMS Banking facility to all customers without any charges.
Statement by Email
5. FINANCIAL POSITION
(Growth at a Glance)

ECONOMY
(In Lakhs)
June 1987
March
1990
March
1993
March
1996
March
1999
March
2002
March
2005
March
2008
March
2011
March
2012
Share
Capital
6.68 12.14 16.97 23.52 29.71 41.48 84.78 162.88 306.79 363.55
Reserve
Fund
0.11 6.31 31.11 82.75 186.12 406.15 748.79 916.21 1572.27 1744.09
Deposit 104.16 254.09 407.98 1169.32 2120.34 4568.42 6457.77 10259.53 17670.49 20253.76
Loan 59.95 173.33 375.42 772.74 1293.11 2333.15 3664.50 5419.11 7968.88 10229.85
Investment 17.10 106.20 169.50 484.1 1060.90 2869.17 4304.13 5013.89 10407.67 11237.20
Working
Capital
131.68 309.59 620.66 1475.44 2768.09 5972.58 8555.94 12068.69 20326.92 23560.82
Members 1631 2425 3213 3422 3887 4064 4773 5591 6159 6422
Overdue 0.94 20.11 47.99 100.18 167.75 303.03 338.23 393.38 299.07 397.19
Audit
Grade
"A" "A" "A" "A" "A" "A" "A" "A" "A" "A"
ARTICLE ON JAIN HIND CO-OPERATIVE BANK

ECONOMY
JAI HIND CO-OPBANKFACES MUSIC
TNN Oct 18, 2004, 04.27pm IST
PUNE: The board of directors of Chinch wad-based Jai
Hind co-operative bank has been superseded by the
department of co-operation due to several financial
irregularities.
The action was taken under section 110 of the Maharashtra
Co-operative Societies Act 1960 following instructions by
the Reserve Bank of India (RBI). Chandrakant Tikole,
deputy district registrar, co-operation took over charge as
administrator of the bank on Sunday. Tikole also has
charge of the Pavna co-operative bank, whose board of
directors was superseded in 2002 in the wake of the Rs 250
crores securities scam.

ECONOMY
Jai hind CoopBank boardsuperseded for violatingnorms
Gouri Agtey Athale, Oct 30, 2003, 11.51pm IST,
PUNE: The board of directors of yet another cooperative
bank has been superseded. This time, it is the 12-
member board, led by Chairman Arjan Gurbaxani, of the
Jai hind Cooperative Bank, a Mumbai-based bank. The
board was superseded today and an administrator
appointed.
The move follows two inquiries by the Registrar of
Cooperatives (RoC) and the RBI, which found glaring
irregularities and violation of all norms. The bank has
just one branch, near the Stock Exchange in Mumbai.
The Jai hind Bank had total deposits of Rs 44 crores but
its paid-up share capital and reserves had turned
negative, being a negative Rs 22.4 crores. A huge 62%
of its loaning was to directors and relatives, high costs
deposits accounted for 85.3% and its CRAR was a
negative 50%.

ECONOMY
Q.1) when was jai hind cooperative bank establish?
ANS) 1st march 1986.
Q.2) what is the growth rate of your bank?
ANS) Increasing 15-20 %per year.
Q.3) what are the latest technology used by your bank?
ANS) latest technology is virmati software & communication.
Q.4) what are the services provided by your bank at national and international level?
QUESTIONNAIRE

ECONOMY
ANS) providing insurance services by tie up with Bajaj Allianz Insurance Company.
Q.5). during the recession period what were your fund regulation policies?
ANS) policies are:-
Providing finance to small scale industries, small business enterprises.
Providing term loan and cash credit facilities.
Q.6). how globalization benefited to your bank?
ANS) benefits from globalization are:
Update technology (core banking solution, SMS facilities, and ATM facilities)
Increase competition in the market.
Q.7) what challenges do cooperative banks face in global economy?
ANS) increase competition and they are not allowed to do the deal in foreign exchange
transactions.
Q.8). which innovative technology used by your banks?
ANS) SMS facilities and ABB (any branch banking).
Q.9). do cooperatives play an important role in the socio-economic development of the countries?
ANS) Yes
Q10) what type of special benefit gives your by your bank to customers.
ANS) 1) Attractive interest rate in FDR,

ECONOMY
2) Core banking facilities,
3) ABB, education loan facilities at low interest rate,
4) Amber rajni facilities for ladies for purchasing pc & laptop at low rate,
5) Housing facilities at concessional rate.
Q11) which are the economic sectors where your cooperative banks are most active?
ANS) urban sectors
Q12) what are the services provided by your bank to customers?
ANS) only debit card and SMS banking services is providing to customers. Services like NRI,
credit facilities, internet banking is not provided.
Q13) will your organization support a proclamation of an international year of co-operatives in
2011 to promote cooperatives and raises awareness on their role in socio economic.
ANS) yes
Extra information given by manager about their bank:-
 Number of shareholder- 6500 members
 Share capital amount- 4 crores
 Total Investments- 131 crores
 Total deposits- 227 crores
 Branches- 9 branch and one extension counter.

ECONOMY
BOOKS:
CO-OPERATIVE BANKING, BY INDIAN
INSTITUTE OF BANKING &FINANCE (IIBF)
Publisher: Macmillan Publishers India (2010)
Co-Operative Banking, Its Principles and Practice: With a Chapter on Co-Operative Mortgage-
Credit [1907] [Paperback] Henry W. (Henry William) Wolff (Author)
Publisher: Cornell University Library (September 22, 2009)
Co-Operative Banking
Publisher: New Central Book Agency Pvt. Ltd .(January 1, 2010).
WEBLIOGRAPHY:
http://www.jaihindbank.com/About_Us.aspx?page=aboutus&&aboutus=y
BIBLIOGRAPHY & REFERENCES

ECONOMY
http://www.cedar-
consulting.com/pdf/newsevents_pdf/Impact%20on%20Indian%20Banking%20v1.pdf
http://www.managementparadise.com/forums/banking-insurance-final-100-marks-
projects/73073-impact-gloablisationon-indian-banking-sector.html
http://www.steema.com/gallery/charts/4
http://www.scribd.com/doc/54931284/9/Structure-of-Co-operative-Banking-System-in-India

Cooperative bank in_globalised_economy

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