Section I CHAPTER-I; INTRODUCTION

1.1 Introduction and Concept o f Co-operation

1.2 Definitions o f Co-operation

1.3 Principles o f Co-operation

1.4 Types of Co-operatives

1.5 Background o f Urban Co-operative Banks

1.6 Concept o f Administration. C h a p te r - 1; In t r o d iic t io ii

!•! Introduction and Concept of Co-operatloE;- C0"0perati0n is a special mode o f doing business. It does not aim at enriching its votaries at the expenses o f others; nor does it endeavor to benefit others by doing out charity to them. Its object is to promote the economic welfare o f its constitiients through self and mutual help. The co-operative method can apply to almost all fomis o f economic activities. It has tried successfully in such a wide range o f schemes as production, distribution, banking, supply, marketing, housing and so on. No country however, has attempted co-operation as an omnibus cure all , at once; each has shaped co-operative business to suit its particular needs. In England co-operation was introduced at first time in the world as the form of co-operative consumers’ society. In India, co-operation ■ was first introduced as a remedy for rural indebtedness and only much later did it gradually embrace other forms. ‘"Co-operative is not an end but a means to an end. It is tool like a hammer or atomic energy. The tool itself has no ethics. The co-operative like a hammer or atomic energy may be used for good or evil ends. When co-operative moveriient remains true to the idealistic principles, ■ moral people walk along by its side, hand in hand, but when co-operators become selfish, greedy, grasping and dominated by profit motive, it must

be condemned.” ^ Prime Minister Pandit Nehru said, “The Co-operative principle is not some thing which is a way of credit or marketing. It is a way o f life. If you make it a way of life, you not only attempt to solve the country’s problems, but also help in the solution of international problems.” 1.2 Definitions of Co-operation: It has so far not been possible to define co-operation precisely because the movement was bom out of adversity. The circumstances, which gave rise to adversity, however, have been different in different countries. Different definitions have been given by different authorities in the context of the circumstances in which the movement took its birth in their respective countries.

Often-qnoted defmitions:- Mr. Calveit defines it as “A form of organization wherein persons voluntarily associate together as human beings on the basis of equality, for the promotion of economic interests of themselves. Mr. M T Herrick defined co-operafion as, “Co-operation is the act of persons voluntarily united for utilizing reciprocally their own forces, resources or both under their mutual management to their common profit or loss.”'* According to the co-operative planning committee (1946), “Co-operation is a form of organisation in which persons voluntarily associate together on a basis of equality for the promotion of their economic interests.” Those who come together have a common economic aim, which they cannot achieve by individual isolated action because of the weakness of the economic position of large. This element of individual weakness is overcome by the pooling of their resources, by making self help effective through mutual aid and by strengthening the bonds of moral solidarity between them.”^ According to James Peter Warbasse, “Co-operation is a way of life whereby people unite democratically in the spirit of mutual aid to get the largest possible access to the things and services they need.”*’ Mr. Vaikunthlal Mehta, a veteran co-operator of India, describes Co- ' operation as follows, “Co-operation is only one aspect o f a vast movement which promotes voluntarily association having common needs that combine together for the achievement of common economic ends.”^ To be brief, the term o f co-operation in its special sense, which has been considered in the present study, may be described as a special form of doing business, not in the traditional profit economy sense that in such a business, persons with common needs associate together to pursue their common interests and achieve their common objects through self help and mutual help/Association o f persons is the very basis o f co-operation provided the association is worked for the mutual benefit o f those forming the associations, which are controlled by the associates themselves. It differs completely from other forms o f business organisations, in the sense that the cooperating members so not seek to satisfy their common needs at the price of injury to others or by exploitation. Co-operation thus suits the poor more than the rich. The rich, however, are not precluded fi'om coming within its fold. However, persons desirous to co-operate must have a common objective and urge, to fulfill it they must be prepared to work selflessly on the principle o f “Each for • all and all for each.” ^

1“3 Priiiciples of Co-operatlom: Co-operative principles are those practices, which are essential to the achievement o f the co-operative enterprise or movement. “The principles o f co-operation are normally traced to Rochdale pioneers who established their Equitable Society in 1844, though their origin goes back to Robert Owen and Dr. William Kind of Brighton and to some o f the letopian Socialists. The Co-operative principles, though revolutionary in character, were never stridently announced from the pulpit or the platform and though of deep philosophical in port, they were enunciated in any weighty tone of a learned philosopher. They were simply the rules of business recorded in the proceedings of a small consumer society of a handful of weavers who came together for providing common mutual services. However, herein lays the secret of the profound combination of vision and realism in the principle of co-operation when seen together as a totality. More than a century has elapsed since the principles were first enunciated; through the years they have been examined and commented upon, refurbished and rebumished, but their original statement remains almost unaltered in all the essential aspects. Co-operative principles were reformulated by a commission appointed by the International Co-operative Alliance in 1964 under the Chairmanship of D. G. Karve of India with Mr. A. Bonner of England, Mr. A. Harvard of USA, Prof. D. R. Henzler of Germany and Prof. I. Istanov of USSR as members. It submitted its report in 1966, the commission laid down the essential principles of co-operation. The principles of co-operation include :-

(I) Open and Voluntary Association: It is purely a “Voluntary Association”. There is no compulsion for any body to join and quit it. As such, the membership of a co-operative organisation is always open to all irrespective of differences of caste, creed, color, community, reach, poor and race. There is no discrimination in co-operation. They may join it at their sweet-will for achieving the common economic goal. On the other hand, they may also quit its membership of their won wish. Prof H. Calvert rightly said that. unless such a freedom is given tOi the people, a truly co-operative spirit cannot be developed amongst the members.”

(IBPemocratic Maaagemeiit: ■ The base of. co-operation is democracy and democratic management. Every user of a service rendered by a co-operative can be its member. In a co-operative organisation, people do not come together based on capital So that, capital could not be allowed to retain the control of its affairs as happens in joint stock companies. In a joint stock companies principle of 'one share one vote’ is followed and so that every member has right to vote in proportion to the number of shares he holds. Due to this only a few persons control the management of the concern and those who hold a small number of shares have no voice in its affairs. But in a co-operative society, ‘one member one vote’ principle is followed and accordingly every member gets right to give only one vote, irrespective of the number of shares held by him and so he has an equal voice in the management of their common affairs. Thus in the true sense, a co­ operative society is governed by the human beings. It should be noted that it is an association of persons and not of capital.

(in) Self-help aad Mntiial Help: This principle implies self-fmancing and self-management by the co­ operatives. The members of co-operative organisation associate together with a view to promote the economic interest of their own. It is purely their own organisation and they, work on the principles of “Self-help through mutual help.” The motto of these societies is “Each for all and all for each”, working on this motto, members help each other. It is an organisation of persons who are financially weak. Their resources are so merge that they are unable derive any benefit and improve their economic conditions. Hence, in order to convert their weakness into strength, they pool their resources and then work together for mutual benefit. It is the genius of the Co-operative. movement to have recognized values of self-help and mutual help than united in a single effort.

(IV) A Spirit of* Serviee or No-profit Motive; “Co-operation is not merely business, but a spirit of service which evokes loyalty, fellowship and a corporate feeling.” Therefore, a spirit of , service is the real base of co-operative organisation. It is with this motive the co-operative movement has come to be developed in various fields. They are not carding on their work with profit motive. The main object • is to protect the members at the hands of the intermediaries and to improve the economic status of its members. Nevertheless, this does not mean that the co-operative societies should not earn any profit. A co­ operative society is also a business concern and not a charitable trust, having adequate capital, efficient and trained staff and so it must run on profit. Such profits are meant to strengthen the financial position of the society with a view to render better and cheaper service to its members.

(V)Distribiitioii of profit or siirpliis^ Though earning profit is secondary objective of a co-operative

orgmisation, even4. then, like any other business concern it must make profit to run its business properly. After making provisions for statutory reserves and other fimds, a fair rate of return is paid to the shareholders of the society in the form of dividend. The highest rate of dividend to be paid on capital is usually fixed by the co-operative society’s act of the concern country, so that they may not be unnecessarily high. The remaining profit, which is known as surplus, goes to the members based on their transactions. Profit is neither the objective nor the obligation or the yardstick of efficiency of co-operative enterprise.

(VI) Political and ReliEioiis ffleatralitv: For economic and social uplift of ’the members of a co-operative organisation they have to work together whole-heartedly giving Ml support to each other. Unity is an important force in the co-operative • machinery and it helps in its smooth working and achieving its aims; Therefore, it is very important that members maintain harmony and continuity in their work. One of the main reasons disturbing the unity and common thinking of the members is the political and religious differences among the members. It is therefbrej of fundamental importance that the co-operative movement should remain away from the party politics as well as religious movement

(VIB Prmciple of EdHcattoii; Education of co-operation is very important and so it has been rightly said that the co-operative movement was bom with education and educationists. The Rochdale Pioneers made financial provision for education from the very inception. This principle is also a condition for the realization of all other co-operative principles and the success of co­ operative business. Member education and training of office bearers and executives are always been .considered essential for promoting enlightened membership and leadership and efficiency in management,

(VIH) Priiictple of Co-OBeratioii amongst the Co-operatives; This principle is also very important and it requires maximum possible mutual help and* co-operation between co-operatives at different levels and different sectors, between local and regional co-operatives, regional and national co-operatives and amongst national co-operatives themselves. It is only through such mutual co-operation, that co­ operatives can face the monopolies and oligopolies and attain fullest growth of which it is potential.

1. The co-operative society can be started for any type of business or service, which is usefol for the people. Minimum ten persons having a common goal can come together and start a co-operative society. Co­ operative societies are classified into two categories, i.e. Agricultural Co-operatives and Non Agricultural Co-operatives. Non Agricultural Co-operatives are again classified into two categories, i.e. Credit Co­ operatives and Non Credit Co-operatives. The credit co-operatives include all types of societies, which give loans to the members, and non-credit co-operatives are the societies, which do not give loans but render different types of services to the members. Credit co-operatives are again classified in two categories, i.e. Agricultural Co-operative Credit Societies and Non Agricultural Co­ operative Credit Societies. Agricultural Co-operative Credit Societies give loans to the member farmers, for the development of the agriculture only. In addition, Non Agricultural Co-operative Credit Societies give loans to the members other than agricultural purpose. Non-Agricultural Co-operative Credit Societies include Urban Co-operative Credit Societies, Urban Co­ operative Banks, Employees Co-operative Credit Societies, Employees Co-operative Banks etc. The types of co-operatives can be elaborated with the help of following diagram. Chart Ho. 1.1 Types of Co-operatlyes

Agriculture Co-operative Non Agriculture Co-operative Societies Societies 1. Agricultural Marketing Societies 2. Farming Co-op Societies

Credit Co-operative Societies Non Credit Co­ operative Societies Agriculture Credit Co­ Non Agriculture operative Societies Credit Co-op. 1. Housing 1. Primary Agri. Co-ops. ' Societies 2. Consumers 2. Land Development 1. Urban Co-op 3. Industrial Banks. Banks. 4. Processing 3. Dist. Central Co-op. 2. Urban Co-op credit 5. Service Banks. Societies 3. Employees Co-op credit Societies

1.5 BaclffiroEiid of Urbaffl Co-operative Baaks; The need for urban co-operative banks arises from the fact that joint stock banks are not interested in providing credit to the middle class people in urban -areas. This is because it is not advantageous for joint stock banks to cater the needs of small borrowers because of the high cost of advancing and recovering small loans. Further, joint stock banks are not likely to have an intimate knowledge of the standing and

1 0 resources of persons of moderate means. These persons do not have any valuable assets to offer as security. Under these circumstances, the men with limited means, in urban areas, find their credit needs unattended. W. K. H. Campbell appropriately sum.marized the needs of the urban middle class. He observed, a very little investigation of the conditions of the salary earning class is frequently enough to reveal that, when sudden emergencies arise which make an unexpected demand on their fixed salaries, they have to borrow, that they do so on most unfavorable terms and that as a class, they are heavily and in most cases hopelessly indebted. The urban co-operative movement originated in Germany, when Herman Schulze started such societies for the benefit of artisans in the cifies. Luigi Luzzatti started similar societies in Italy. During the second half of the 19'^ and later in the 20''^ century, the movement gathered momentum in most of the countries of the world. The spread was rapid during the First and Second world wars. The rapid development of the urban co­ operative movement can be traced to the following causes : 1) Urbanization, which came along with industrialization, created conditions, which were favorable for urban banks. 2) Rapid urbanization and the rising cost of living in the urban areas made the need for urban banks more urgent. 3) The increasing scale of operations even with respect to small business concern, forced the people to pool their resources together in the form of mutual aid societies, and later in urban co-operatives. 4) Managerial skills and expertise were available in the urban areas due to the higher standards of education and the general climate of all around development. Generally, non-agricultural co-operative banks are called as urban co­ operative banks. These banks help small industrialists, traders and

11 middle class people from the urban areas. In 19315 the Mumbai Provincial Banking Committee had suggested the need of the Urban Co­ operative Banks. The beginning of these banks is found in llie early years of the twentieth century . At the beginning, these banks were started as co-operative credit societies and after that, they were converted into co-operative banks. In 1904, such type of society was started at Kanjiwaram in Madras and in 1905; the same type of the society was started in Mumbai. These societies were started as per Co-operative Act of 1904, but the real beginning of these banks was from 1915, when Maclagan Committee submitted its report to the Government. The progress shown by these banks was slow but steady. During the depression, also they were less affected. During and after the World War II the financial condition of these banks was very much good.

* ComiHercial Baaks and Urban Co-operative Banks : Due to their functions, there is no great difference between commercial banks and urban co-operative banks. The urban co-operative banks perform all the functions and services carried by commercial banks. However, urban co-operative banks perform these functions for economically weaker section. Commercial banks are not interested to start the branches in.the small cities, but these banks start their working easily. All Urban co-operative banks in Maharashtra are affiliated to the Maharashtra State Co-operative Bank.

1.6 Coiicept of Admiffiistratioia; . The word administration is derived from the Latin word ‘administration’, which means to give service. Administration is engaged in performing a common set of functions to meet the goals of organization.

12 Administration is the universal process of organizing people and resources efficiently to direct activities toward common goals and objectives. Administration mainly involves the determination of various policies, setting up of major activities. The identification of general > purposes and laying down of broad programs and projects. According to Louis Allen, “Administration is the sum of total of planning, organization, control and actual performance”.^

® of admliiistratioB;- The person who does the administration is called as administrator. Following are the ftinctions of administrator.

1. DepartMeEtaifeatioii: The ultimate goal of administrator is to make sure that the things are being done at an efficient level. Departmentalization means dividing and grouping activities of employees of an organization into various departments. It implies the division of the total work of an enterprise into individual functions. 2. Orgaatzatlon; It refers to preliminary and practical steps. Successful business activity requires the combination of different factors of production. An Entrepreneur combines ■ different factors in a business and this is known as organization. Organization is also defined as the framework of plans and policies laid down by management and executed through administration. 3. Commaiidiiieiit: It is the most powerful function of administration.» Administration is one of the top-level functions

1 3 and it is above management and organization. Administrators give command to their juniors, which have to be followed. 4. Co-ordliiatioe: It is a function, which aims to harmonizing all actions of enterprise in order to facilitate its smooth running and success. 5. Control: It is that function of administration, which is dedicated to verify as to whether everything has been happening in accordance with defmed plans, designed policies, orders given and the standard established by the administrators.

> References; 1. Co-operation in Foreign Land; Dr. C B Mamoria & Dr. R D Saksena^ Kitab Mahal, Allahabad, p. 2. 2. Co-operation Oxford Pamphlets on Indian Affairs, WRS Sathianadhan & JC Ryan, Oxford University Press, p-3 3. Co-operation in^Foreign Land:, Dr. C B Mamoria & Dr. R D Saksena: Kitab Mahal, Allhabad. p.3 4. Ibid p.5 5. Ibid p.5 6. Ibid p.6 7. Ibid p.7 8. Ibid p.8 9. Business Administration, Dr. P C Pardeshi, Nirali Prakashan, p.23

1 4 CHAPTER-II HISTORICAL REVIEW OF CO-OPERATIVE MOVEMENT

2.1 History o f Co-operative Movement in the World 2.1.1 Genesis of Co-operation: 2.1.2 Co-operative Movement in England 2.1.3 Co-operative Movement in Denmark 2.1.4 Co-operative Movement in Ireland 2.1.5 Co-operative Movement in Germany 2.1.6 Co-operative Movement in Italy 2.1.7 Co-operative Movement in France 2.1.8 Co-operative Movement in Sweden 2.1.9 Co-operative Movement in USSR 2.1.10 Co-operative Movement in China 2.1.11 Co-operative Movement in USA 2.1.12 Co-operative Movement in Canada 2.1.13 Co-operative Movement in Israel 2.1.14 Co-operative Movement in Japan

15 2.2 History of Co-operative Movement in India

2.2.1 Historical Dex elopmenl and Origin of the movement

2.2.2 Pre Independence History of Co-operative Movement in India

2.2.3 After Independence History of Co-operative Movement in

India.

2.3 History of Co-operative Movement in Maharashtra

2.3.1 Introduction and Progress of Co-operative movement in

Maharashtra

2.3.2 Some of the important co-operatives in the Maharashtra

2.3.3 Landmarks of the Co-operative Movement in Maharashtra

2.4 Brief History of Banking

2.4.1 Introduction and Origin of the word ‘Bank’ :

2.4.2 Evolution of Banking in West;

2.4.3 Evolution of Banking in India:

2.4.4 History of Co-operative Banking in India

16 Chapter II Historical Review of Co-operative Movement HistoiFV of Co-operative M^veittieiit ia the World 2.1.1 Genesis of Co-operatioM; Co-operation has always been the child of necessity and has developed in different countries along with different lines. To the threat of domination and exploitation by large business, co-operation was the reply of the small-scale farmers and the isolated and powerless individuals, possessed of little bargaining power and left helpless by the laissez faire policy of the state. Thus the flaimel weavers of Rochdale combined together in the Rochdale Pioneers Equitable Society to secure tiieir house hold requisites at wholesale prices and escape exploitation by the retailers; thus was initiated the Consumers’ Co-operation in England. The poor fanners of Germany under the guidance of Raiffeisen combined into co-operative societies to obtain cheap credit; thus originated the co-operative credit movement. When with the spread of industrialism and growth of big cities, a wide gulf grew between the farmer and his markets, and the farmers found themselves more and more at the mercy of the increasing long chain of intermediaries they were forced by the logic of circumstances to combine for self-preservation. This led to the emergence of agricultural co-operation in Europe in various forms, such as societies for the purchase of raw materials and implements required for cultivation; societies such as co-operative creameries in Denmark, while in the new countries like Canada and USA with their immense distance and production for foreign market have tended to concentrate on co-operative marketing.

17 2«1*2 Co-operatlve Movemeiit in England ® Introdiictioa; In the field of co-operation, England has been the torchbearer to the whole world. The birth of the movement took place at the hands of those who were the victims of the Industrial Revolution. This movement started in the countiy in the second half of 18* centuiy. Prior to this, the conditions in England were similar to those of the underdeveloped countries. Human genius could not lag behind and to meet al these problems, co-operative movement was started in the country by the exploited class of persons. ® Historical PevelopmeHt; The agriculture in England became capitalistic and the farmers with inadequate capital had to give up fanning. Therefore, they had to move to towns in search of bread.

Robert Oweii' He was one of the earliest sjropathizers and practical philanthropist for the cause of laborers. He is regarded as the father of the modem co-operative movement. He was one of the most remarkable personalities of his times.

® History of Rochdale Pioneers EqiiitaMe Society: In 1844, 28 v/eavers come together and established consumers’ co­ operative store in the city of Rochdale, a textile town with population of hardly 25000. It served as the center for many other villages. Although they were other industries too, but the woolen manufacture, spinning and weaving of cotton goods were the most important ones. Their life was very happy until advent of the

18 Industrial revolution in England. After the establisliment of power driven industries, like all the artisans of other parts of England, they were faced with the new problems. The workers life had become miserable. For overcoming all these problems, they come together and formed Rochdale Pioneers Equitable Society for getting raw cotton for their business.

Spread of the Moveiiieiit With the success of the Rochdale Store, the movement began to spread in other parts of the country as well The workers in nearby towns started new societies. Before 1852, there was no separate Law governing these co-operative societies and so that, like other bodies, they were registered under the Friendly Societies Act. Many times, they were not registered at all with the result that the liability of the members was unlimited. As a body, they had no legal remedy to recover their dues. The First Industrial and Provident Act was passed in the year 1852 and after that the co­ operative societies got the recognition and status of Legal Corporation. The Act was passed with the band of social workers, known as Christian Socialists.

CoatribiitioE of Christiaa Soei^Itste to the Movemeat A body of religious minded people, known as Christian Socialists. They were deeply interested to bring about a reform in the social and economic life of the country. They condemned the accumulation of wealth in the hands of a few and preached that it was against the spirit of Christianity. They, therefore made efforts to ‘Christianize Socialism’ and adopted the name of ‘Christian Socialists’.

19 The role played by them in shaping the entire movement occupies a prominent place in the industrial and social history of Great Britain. As already stated, the Christian Socialists made great efforts for being passed a separate act for the co-operatives. The Act was passed in 1852, which recognized co-operative societies for tode and work. The Act of 1852 gave a great boost to the movement and there came an all-round progress of the co-operative movement. Due to this many co-operatives like co-operative wholesale stores, co-operative insurance, co-operative unions, the Women’s Co­ operative Guild, the National Men’s Co-operative Guild, Co­ operative Credit Societies, Producers’ Co-operatives, Agricultural Co-operatives and Co-operative Housing etc. come into existence.

Eiigland aad th© Co-operative Movemeiit The co-operative movement in England is very independent of the Government. Government does not give any financial assistance to the co-operatives. They only get some limited grant for educational purpose. Thus, there is no interference from the State in its working and organisation and that is why there is no co-operative department to look-after the movement. The societies are registered with the Chief Registrar of Friendly Societies. This very office also registers Trade Unions and other Associations. Other co-operative societies are governed by the Industrial and Provident as per the provisions Act 1893.

20 2.1.3 Co-operative Movement in Denmark ■ The Background Denmark is a small country. It has a very good fertile land. Agriculture plays an important role in the economy of the country and for its all-industrial imports; it has to export agricultural produce in large quantities. Co-operative movement has developed in the country within this overall structure of economy. It has made a wide use of principles of co-operation in the field of agriculture, this has made it so much famous all over the world and due to this feature, Denmark is called as “Co-operative Denmark.” However, the progress made by the Danes in the co-operative field has not been very smooth, as they had their own difficulties arising out of the socio-economic structure of the country's economy. Still it has been a torchbearer in the field of agriculture co­ operation to the other countries of the world. The co-operative movement in the country arose in the course of development of nation’s economic life. Its most outstanding feature is that, in other countries the movement came either from the state or from some philanthropists, but in Denmark, it came entirely from the side of people. Thus, it is essentially a people’s movement there. Good educational system and Uniform size of Land holding of the peasantry in a country prepared the background for such a movement.

■ Dairy Industry and Co-operation The Danish farmers have achieved a great success on co-operative lines in dairying. In fact, Co-operative Dairying occupies a prominent place in the co-operative system of the country. A few

21 poor peasants surrounding tlie village of Hjedding - West Jutland organized the first Co-operative dairy in the country in 1882. The co-operative principles of this society were so sound tiiiat later overall development of the co-operative industiy took place on those lines. These principles are now followed practically by all the co-operative creameries operating in Denmark. Denmark is world famous for its dairy industry.

Bacon and egg factories are subsidiary to dairy industries. With the development of the co-operative dairies, the development of bacon industry took place automatically as the separated milk was used for feeding the pigs. Pigs are best fattened with this milk. Similarly, it would have gone waste and they have not taken piggeries as an additional job. Therefore, the farmers started rearing them. Poultry can also be reared on the remnant of large. amounts of cereals grown in the country and imported from abroad to feed the cattle. Eggs, therefore, become in a sense subsidiary or at least an allied product. Consequently dairy, bacon and poultry societies are the most important in the country.

The third most important agricultural export from Denmark is eggs. The problem of exporting fresh eggs has been facilitated by a very fine organisation of co-operative marketing. The Danish Co­ operative Eggs Export Association handles the maximum export business.

22 Other Co-operatives in Denmark 1. Co-operative Supply Societies 2. Cattle or Live Stock Improvement Societies 3. Control Societies 4. Cattle Breeding Societies. 5. Co-operative Insurance Societies. 6. Co-operative Credit Societies

Salient Features of Denmark Co-operative Movement The chief features of the co-operative movement in Denmark, which have brought such a high degree of perfection of the movement, may be enumerated as follows: 1. The membership of the co-operatives is on voluntary basis 2. All the members are loyal towards the society 3. There is no state assistance 4. Specialization 5. Decentralization 6. No special favor to the movement 7. Compulsion 8. Efficient Management 9. Compact organisation 10.Provision of long-term credit 11.Efficient Marketing arrangement 12.Technical guidance

23 C0"0peratl0a»iii Irelaad

Conditions in Ireland are as similar as Denmark. It is also an agricultiiral country as Denmark but its soil and climatic conditions are suitable more for cattle raring and dairy farming than to crop growng. Naturally, the welfare of the stats depends directly or indirectly upon the agriculture produce that could be increased only by adopting scientific methods.

Hlstorkal Pevelopiiieiit of Co-operatioii; The Irish people were lacking in co-operative character, the movement .did not arise from the hearts of the people. It was also n o t introduced by the state.' Leadership of the movement had to come from outside who showed them the light of co-operation. Under the influence of Robert Owen, a co-operative community at Ralahive had already been formed which had gained a good success. It was the first experiment in Ireland in the field of agricultural co-operation. After two years, the community had failed but in a way, it had showed the way of co-operation to the country.

Jr The Paiilsh Mode! adopted; At first Sir Horace Piunket^ the father of Irish co-operation had faith that consumers’ co-operative stores would benefit the peasant community. Therefore, he established a small store in Ireland on his father’s estate on the model of England. Nevertheless, the store could not achieve success. He was not disappointed with this. In 1888, being impressed by the Danish experience, he turned his attention towards agricultural co-operation, which could solve the

2 4 problems of the farmers. He gave a call of co-operation to the people, created enthusiasm among them and developed a co­ operative character. His slogan was “better farming- better business and better living” which remained not only within the boundaries of Ireland, but became the guidelines for the co­ operative movement in the whole world. The first co-operative creamery was started in 1889. A few co-operatives of other types were also formed. In 1892, Irish Co-operative Agency Society was established for undertaking co-operative marketing of their produce. Thus by 1894 agriculUiral co-operation took firm root in the country. During this very period some distributive stores, credit societies and an Agricultural Bank were also started. In 1894, the Irish Agricultural Organisation Society was formed for undertaking educational propaganda work and to act as a mouthpiece of the movement and protect the interest of agricultural societies from external dangers and internal aberrations.

■ Co-operative Creameries: The Irish co-operative activities have been developed in three main fields viz., (a) Dairies or Creameries (b) Supply Societies and (c) Eggs and poultry Societies, yet the most important branch of Irish co-operation is the creamery movement. Co-operative dairies, in fact, are the soul of the Irish co-operative movement. The south part of the country has a large number of creameries and so this is the best area for dairying. The creameries are based on limited liability having share capital and they are mostly concerned with butter production, though some of them also sale liquid milk.

25 There are three types of creameries viz., (1) The Centra] Creamery, (2) The Central Society with its branches and (3) Separate Skimmeries.

■ Separate Credit Co-operatives were formed on Raiffeisen model in the country. The Irish Co-operative Live Stock Marts Ltd. was established for the export of the cattle. The Irish Milk Powder Export Ltd. was established by the co-operative creamery societies, which were producing milk powder. ■ Problems of Irish Co-operatives The co-operative movement in the country suffers from a number of problems and weaknesses and for achieving, the real objectives of the movement, these weaknesses and the problems have to be removed at the earliest. Some of these weaknesses are as follows: 1. Failure of strong Leadership. 2. Absence of Direct control. 3. No Clear-cut objectives. 4. Defective Management of the Societies. 5. No arrangement exists for studying the real problems of agriculturists. 6. Inadequate arrangement for the development of co-operative education. 7. Lack of finance. 8. No correct measure of efficiency. 9. Slow development of agricultural Societies. 10.Lack of adequate attention to the quality of product. 11.Defective Preparation of Final accounts.

26 2.1.5 Co-operative Movement in Germany ■ Introduction Tlie contribution made by Germany in the field of co-operation is that of co-operative credit or co-operative banking. The conditions existing in Germany in the middle of the 19*'’ century were pitiable and disheartening. The farmers and the artisans were in the grip of the moneylenders who were mostly Jews. They were fiilly exploiting the people who had totally become the victims of the financial distress and lack of credit facilities. Because of these merciless ways of exploitation of the Jews, people were leading serfdom. Thousands of families were ruined in this way. Under these conditions, co-operative movement originated in Germany and spread throughout the world.

■ Historical Development: The pioneers of this movement were two individuals, Herr Schulze and Herr F. W. Raiffeisen. Schulze and Raiffeisen were greatly moved by the helpless and distressing conditions of the people and began to think of the plans for their rescue from the sufferings and tribulations that they were undergoing. Both of them started their work purely on humanitarian basis and out of love of their fellow citizens simultaneously, yet quit independently of organizing credit facilities on co-operative basis in their respective areas. The aims and objectives of the Schulze and Raiffeisen were the same, namely, the relief of the poor through self-help but the sphere of work of each was different for Schulze it was urban while for Raiffeisen it was rural.

27 Progress of Schulze Banks; The Schulze type of banks (also known as Popular Banks) proved a great boon for an important section of community consisting of petty tradesman, artisans and other middle class people by solving the problem of their credit requirement. Hence, they met with immediate success. Schulze took up the cause of helpless people and showed them the light of hope in their joint efforts for the betterment .of their economic conditions. Hence, “the movement has proved a most fruitful source of riches and of progress, touching up barren wastes with Midas” hand and diffusing material blessings around it.

Raiffeisen Model While Schulze-Delitzsch worked in the urban area for the benefit of the artisans, small tradesmen and other middle class people, Raiffeisen, another Gennan, equally well known in the field of co­ operative credit as Schulze, started his work in the rural areas simultaneously to find a solution of the financial difficulties of the village people. Raiffeisen used the same principles to eradicate these evils but as the circumstances of the villages were different, he adopted a slightly different model. Raiffeisen, the great disciple of co-operation, established a co­ operative bakery in I 848 for distributing potatoes and bread to the poor with the small amount, which he could manage to save, which enabled the members to purchase bread at the half-current price. In 1849, he started a co-operative cattle purchase association, which helped the poor farmers by selling to them cattle at easy rates, but the members of this society were only some rich philanthropists. After this experience, he diverted his efforts for the establishment

28 of loan society and in 1862; he established a loan society at Van- Heusen. This was fully co-operative as the boirowing farmers were all members of this society. This society known as. “village bank . In 1877 a general union was formed which was known in 1899 as the Genera! Union of the rural co-operative societies. It covers the whole Germany. Dr. Hass’ Co-oioerative OrgknisatioE Both-Raiffeisen and Schulze-^ Delitzsch could not cover the entire country with their organizations and so side-by-side many other organizations and unions started in the country. Of thfese, the most important was-that of Dr. Hass who was formerly an active and 'faithfiil fellow worker under Raiffeisen organisation. However, later on heTDroke away from Raiffeisen and organized societies to serve the big farmers. He started associations for^ mutual trading and banking, but in case where trade was large enough or could cover a number of villages, a separate trading society was established for it. Pnisslaitt Ceatrai Co-operative Bank It was established by the .Prussian government in 1895 with a capital of 5 million marks, which was later on increased to fifty millions. The aim was to provide cheaper credit to small producers ■ and farmers- not to individuals- through their associations as it was found that co-operative credit societies had not been able to meet reasonable tieed of the small people. Other forms of Co-operatives Non-Credit Societies, Supply and Marketing co-operatives, Agricultural co-operatives, Urban Societies, Housing Societies, Consumers’ Societies.

2 9 2.1.6 Co-operative Movement in Italy

■ Historical Background : Co-operation in Italy has got very solid and deep roots. It was started as a socio-economic movement in the end of the nineteenth century. The credit to start co-operative movement in Italy goes to Luzzati, a professor of economics at a technical institute in Milan. He made the co-operative movement in Italy to be the “Envy of Europe”. He was one of the greatest non-political co-operators that the world has produced. He believed that the co-operative way was the only solution to save people from the usury and trap of the moneylenders. Men like Luzzari and Wollemburg who were the real founders of the co-operative movement in Italy showed the path of co-operation to the people. Luzzati started urban credit societies modeled on the Schulze-Deitzsch plan known as Banca Populare or Peoples Banks, while Dr. Wollemburg started a system of rural banks based on Raiffeisen type. Thus like other places in Italy also from earliest days the co-operative movement has been divided into two main branches. ■ Luzzatian Principles of Co-operation The following are the main principles of the Luzzati system. 1. Limited Liability : 2. Less value of shares: 3 Capitalize Honesty: 4. Democratic Management; 5. Credit Policy: 6. Avoidance of Ri sks: 7. Absence of Central Banks and Higher Organisation: 8. Distribution of Profits

3 0 Rural Banks or Casse Rurali The People’s banks started by Luzzati helped only the large farmers and the traders but the small farmers in the villages were still in the difficult position. The conditions in rural areas of Italy until very recently were similar to that of the rural classes of India. The families were under the heavy burden of debts perpetually. Dr. Wollemburg introduced a system of rural banks of Raiffeisen model for small farmers in Italy and by this event, the country found its own Raiffeisen. He established Rural Banks on the Raiffeisen model but with certain modifications, to suit the peculiar conditions of the country.

Catholic Societies or Communal Banks; Wollemburg societies and Catholic societies are the two groups of the rural banks in Italy. The catholic priests started Catholic societies. They did not believe in the principle of religious neutrality followed by the Wollemburg societies. The important feature of catholic societies is that only a catholic can join the society. In the field of co-operation in Italy Catholics have played a vital and prominent role.

Other Forms of Co-operation in Italy 1. Co-operative Farming Society: 2. Bracchianti or Societies Formed by Laborers; 3. Consortiums; 4. Farm Requii'ement and Marketing Societies; 5. Dairy Farming: 6. Rural Credit Societies.

31 2.1.7 Co-operative Movemeat In Fraace H iMtrodiietioE aad Historical Pevelopmeiit If England is the home of consumers' co-operation, France is the birthplace of producers’ co-operation. It has not only originated . co-operative production in the country but also achieved the great success in the world. Co-operative production is of national benefit. It increased the production and eliminated the evils of capitalistic production,

** Charles Foiirier^s Role (1772 1837) Charles Fourier, son of a cloth merchant, vm s the first industrial idealist in the France. He criticized the economic life in country and gave his own scheme unique in character of establishing communistic colonies known as the Phalanstere.

® Louis Blanc (1811- 1882) “Social Workshop’^ After the Revolution of 1848, a second stage in this line took place when Louis Blanc and Buchez started workingmen’s associations in France. Louis Blanc was a great pioneer of state socialism. His idea of association was nothing more than an industrial co­ operative society. Blanc prepared his first plan of industrial co­ operation.

® Workers^ Societies in Fraace The workers’ societies in France are of various types such as Bakers, Brewers, Printers; Producers of chemicals, paper makers shoe makers, textile producers, carpenters, painters, masons and so on. Most of these societies have come into existence chiefly due to state assistance.

3 2 Godm^g Familistire (1817" 1888)

One o f such special type o f co-operative producers’ society was Familistire founded by Godin at Guise in France in 1879, on the principle of partnership of capital, labor and ability. A stove foundry was established in Familistire and at present it is one of the largest fottndries existing in the country.

Lmietierg Society: YThe Spectacle Makers’- Society of Paris) This is a fery old society having been founded in 1848. It was purely of democratic origin started by 13 members and this represents a reverse history than that of Familistire at Guise.

Tlie SocietY for Cab drivers Cab drivers’ societies are the most interesting classes of societies in France. The members hold in common possession and use of machinery and materials of their trade. The Union de Cochers in Paris is the biggest society of this kind. The society owns stables, horses, carriages and harness. It commands a large business.

The prodTOers^ co-operative movemeiit. The producers’ co-operative movement in France made great progress and by 1893, the Ministry of Labor made necessary provisions in the budget for assisting Producers’ Societies with loans and subsidies. Certain municipalities also came forward to give assistance to these societies.

AgriciiltiiFal Co-OBeratioE m Fraaice: ■ Agricultural credit in France is making great contribution towards the moral and material improvement of the people and so this from

3 3 of co-operation is of greater significance in the economic life of France in comparison to the producers’ co-operatives. There are certain special features of co-operatives in France and one of them is that co-operatives as a whole do not fall under one ministry but that the different forms of co-operatives fall under the jurisdiction of separate ministries. There is no single act or statute that applies to each co-operative society. Each branch of the movement is governed by a separate law and by separate decrees under that law. Agricultural societies are of two types viz. credit and non-credit.

® Credit Banks Co-operative credit societies in France have also come to be developed under the wing of the syndicates to satisfy the credit needs of the members. The system of rural credit in France has gone through several modifications but as we have seen above, at present it stands well integrated in a pyramid form with the National Agricultural Credit Bank as its apex, at the base are local or village banks and in between there are Regional Banks.

® Urbaa Credit Up to 1917 there were to be found people’s Banks of the Luzzati type established on the initiative of private individuals without the aid of the state. In 1917, a law was passed which made provision for giving credit to artisans and merchant for short terms. According to this law, two classes of societies were found (1) Urban Banks and (2) The society for mutual guarantee. To conclude, it can be added that the co-operative credit in France has not made the same progress, it has made in the neighboring countries in Europe.

3 4 2.1.8 Co-operative Movement in Sweden ■ Introduction In the world of co-operation, Sweden has come in the limelight. The small countries of Europe are making much headway in the field of co-operation and Sweden has not lagged behind in this respect. The Progress made by the Sweden people in the field of co-operation has been phenomenal.

■ Historical Development. The whole co-operative movement in the country is divided into following three parts, 1. Consumers’ Co-operative Movement. The consumers’ co-operative movement in Sweden has its roots in the large groups of economically backward people. There were industrial workers, farmers, farm laborers and other independent workers. Major part of the population was backward and so in order to improve their welfare; they considered the organisation of consumers’ stores the best remedy, which would procure them foodstuffs and other articles of consumption not only at cheaper prices but also of wholesome and pure quality.

2. Agricultural Co-operative Movement: Sweden was primarily an agricultural country. However, even today in spite of the rapid industrialization of the country, agriculture plays a major part in Swedish economic system. The farmers were scattered, independent minded, and there fore the progress of the movement in the field of agriculture was very slow. The pressure on land reduced because of the development

3 5 of industries where they got employment. All these developments helped the co-operative movement to progress in this field also and since the movement has progressed well at present the Swedish farmers have their own co-operative system. At present, the agricultural co-operatives in Sweden can be grouped into 13 categories. Accordingly, there are 13 national level co-operative organisations given as under. 1. Swedish National Dairies Association 2. Swedish National Federation of Forestry Societies. . 3. Swedish Federation of Meat Marketing Societies. 4. Swedish National Federation of Fruit Marketing Societies. 5. Swedish Association of Egg and Poultry Marketing Societies. 6. Swedish Federation of Rural Credit Societies. 7. Swedish Farmers Selling and Purchasing Association. 8. Swedish Association for Live Stock Breeding and Production. 9. Swedish Oil Seeds Growers Association. 10. Swedish Distillers Association. 11. Swedish Fir Breeders Association 12.Swedish Starch Producers Association. IS.Swedish Flax and Hemp Growers' Association.

Other Forms of Co-operation ® Co-operative Insurance ® Co-operative Education ® Co-operative Housing

3 6 Secrete of Success Following are. the secrets of the success of the Swedish Co­ operative Movement, 1. The movement has definite aims and objectives. 2. Highly well knit and compact organisation 3. Leaders are well trained and business minded. 4. It has democratic organisation.

5. Regulation o f prices. 6. It follows principle of Cash Trading 7. There is well trained Staff. 8. Solid Finance. 9. Perfect harmony and belief in free competition.

37 2-1-9 C0"0peratl0tt in U, S. S. R. , Introdiictloii; The Soviet Uaion has certaiii special characteristics that have immensely influenced the co-operative development in the couotry. These features are: 1. it is a country having vast geographical area. Because of this vastness, the number of lopal societies increased rapidly in each branch of co-operation mth the result that the system has to face various organizational difficulties. • 2. Another factor, which influenced Soviet co-operative organisation, is the character of property rights in the Union, which are vested in the state alone so that the State is the owner of the land. Russia is the only state in the world where the co­ operative movement has been, recognized as the only suitable machinery to replace State ownership about public property. 3. Communist theory of co-operation has influenced the co­ operative movement ill Russia. 4. The politick conditions have also affected the development of the movement. 5. Under national planning schemes of the country launched in 1923, a tremendous transformation took place in Czarist Russia resulting in an enormous increase of volume and quality of agricultural production. Thus the co-operative movement in Russia, because of the above-mentioned special features, is quite different in fiinction and form as compared to the capitalistic coimtry.

3 8 Historical DeYelopmeat The long history of development of the co-operative movement in Russia is the story of unsuccessful attempts and experiments and is closely linked with the political history of the country. Its beginning could be traced as far back as the first decade of the nineteenth century. In the Czarist Russia, it developed slowly- The Czarist government looked upon it with suspicion and did not favor its growth and development. Under such devastating conditions co-operative credit societies came first to be started in 1864. Rochdale Pioneers had already achieved success in their venture in England and when this news: reached Russia, some of the people wished to fomi their own co-operatives of this type and the government approved the establishment of consumers’ societies since 1865.- The year 1865 marks the beginning of the Russian Co­ operative Movement. The movement could not develop until the government changed its attitude in 1905 after the Russo-Japanese War. It gave a fillip to the development of the movement. During the war, the government made use of co-operatives as food centers. The butter co-operatives had also flourished well and had almost the export monopoly. Since the very beginning, it was characteristic feature of co­ operatives to undertake more than one function. After the Revolution when communist party came to power, the movement began to development rapidly and acquired greater importance. The pleasant proprietors were to join the collective farms on co-operative basis. Co-operatives were thus allotted a new role in agriculture. All other co-operative activities developed in the period of peasant proprietorship such as co-operative credit, marketing and supply societies were merged in the collective

39 system of agriculture, consumers’ co-operatives were to rake up the distribution work on large scale and so during the plan period, the consumers’ movement spread very rapidly. Since then much development has taken place in Russia.

. Varioiiis Form's of Co-operative Aetivity.. Russia had developed its own co-operative organisations according to its peculiar economic needs as early as 1860. The forms of co­ operative organisation in the country are as follows; 1. Labor Artels 2. Agricultural societies and Associations. 3. Consumers’ societies. 4. Credit and Loan giving Societies. 5. Co-operative Unions.

Thi2.l&4

40 2,1,10 Co-op©rati0ii ill China Introdiictioffl; However, the co-operative movement in China has developed since

1940, but its growth in recent year has been phenomenal.

Remarkable progress has been accomplished in the country through

co-operative organisations, which enabled the nation to solve its

various problems arising because o f undeveloped national

economy. For centuries, China like India has been an agricultural

country. History o f co-operation in China is said to be story o f

famines, floods, mutual quarrels and the Japanese war. These were

the reasons, which led to the introduction and development o f the

movement in the country. N ow good progress has been achieved in

the field o f co-operation much to the benefit o f the nation.

® Historka! Bevelopmeiit. Dr. Sun Yat Sen who laid the foundation o f Chinese republic in 1912 convinced the idea o f planned co-operative economy as a national policy as early as 1912. In fact, he was the first Chinese

leader o f co-operative movement in the country, who ■ had

suggested that in order to eradicate the object poverty o f the people

o f China; co-operation would be the best means and so took the

initiative to start the movement in the country, immediately after taking up the reigns o f the government. As result o f his efforts.

Prof. Hsieh established the Shanghai National Co-operative Saving Bank in 1919. He also took the publication o f a weekly paper devoted to the propagation o f co-operative ideals and experiences

in other countries.

It was only after 1922 that the co-operative movement grew rapidly

in China.

4 1 structure of Co-operatives The structural organisation of the co-operatives in China is practically the same as we find in other countries. At the top, there is the National federation. This is the higher organisation, known as All China Federation of Co-operatives. It was established in 1950. At the bottom, there are the local societies, which are grouped in sub-county (Chu), County (Hsien), Provincial and Regional Federations. There are 6 Regional and 28 Provincial Federations. These Federations undertake multifarious activities. Other Forms of Co-operatives: Rural Supply and Marketing Societies Urban Consumers’ Co-operatives: Producers’ Co-operatives or Industrial Co-operatives.

Some Special Features of Chinese Co-operative Movement. Chinese Co-Op. Movement has certain special features such as, 1. It is still predominantly agricultural though since 1937 there has been development on the non-agricultural side too. 2. The co-operatives have not built.owned funds i.e. share capital and reserves. 3. There is no provision of external audit of the societies. The audit is left to the societies themselves. 4. The members understand their responsibilities vv'ell and this is an important factor on which the success of the movement depends. 5. The party is more humane, more moderate, a much grater realist and has a much better understanding of the problem of the farmer.

42 2.1.11 Co-operation in U.S.A. “ Back-ground Co-operation in USA took its birth amongst tiie farmers, as tiiey

had to face man}' problems in carrying on their agricultural

activities. Several factors influenced the organisation and

development o f co-operative organisations among farmers. The

problems were the construction o f bridges, clearance o f forests,

drainage o f land, construction o f buildings and harvesting o f crops.

Co-operation o f other farm families in meeting the situation arising

out o f these problems was o f utmost significance.

The formal beginning o f co-operation in the country came very

late, when the co-operatives were formed in the country duly

recognized by law. Hence, the co-operative movement in the

country has a rural background and even at present, it is strongest

in rural area. The rural co-operation developed faster than the

urban co-operation.

■ Early History of the Movement.

Until 1865, there was no co-operative law in USA. It was only in

1865 that the first law recognizing the co-operative method for

buying and selling was passed, even though co-operative

associations had been in existence since early period o f the IQ^’’

century and some o f the earliest manifestations o f co-operation

were the co-operative daiiying and cheese factories. This was the

first phase o f the co-operative movement in USA. It has been

called ‘A SSO C IATIO N ISM '. It was because organisations for co­

operative buying and selling were known as associations. They

were not legally recognized as co-operative organisations as there

was no Co-operative Law in the country.

43 The second phase of co-operative movement started after the passing the- Co-operative Law in the 1865. This phase is known a ‘Grange Movement”. The National Grange is established in 1867. The co-operatives before the establislunent of National Grange were only informal and they were mostly concerned with jointly production. In some states, these unions had taken up marketing functions while in others co-operatives buying were developed. In some of the states, both these activities were important.

At first, they started co-operative buying but gradually they passed on to the development of co-operative marketing of farm products so that at present co-operative marketing is one of the most important activities of the Co-operatives in the America. These associations are the strong supporters to the movement. The emigrants from Denmark, Norway and other European Countries have also influenced the movement considerably.

® Forms of Agrieultnral Co-operation 1. Marketing Associations. 2. Co-operative Dairying 3. Grain Associations 4. Cotton and Oil Co-operatives 5. Wool Co-operatives. 6. Live-Stock Marketing Co-operatives. 7. Fruits and Vegetables Marketing Co-operatives. 8. Purchasing Associations

44 Other Co-operatives

1. Rural Service Co-operatives

2. The bank for Co-operatives

3. Urban Co-operation Consumers’ Societies.

4. Service Co-operatives

5. Co-operative Educational Agencies.

American Institute of Co-operation: This Institute was established in 1925 with the purpose o f promoting the

ideals o f agricultural co-operation. It holds annual sessions to discuss the annual problems. It issues pamphlets and bulletins on current problems o f co-operation. About 1 500 co-operative associations are its members.

45 2.1.12 Co-operation in Canada

■ Introduction :

The completely northern part of North America is known as

Canada. It is the second biggest country in the world with an area

o f 3,845,774 square miles but in proportion to the world area, the

population is \ er\ small.

Canada is an agricultural country and about one sixth o f the land is

suitable for agriculture. It is divided into ten provinces, which are

suitable for different types o f agricultural production. The St.

Lawrence low lands, the fertile valleys of Atlantic Provinces and

British Colombia are most suitable for mixed crops. British

Colombia is also famous for fruit growing. Three o f its provinces

forming the part o f Prairie, viz., Manitoba, Saskatchewan and

Alberta are famous for in the world for wheat growing and live

stock rising. The Western seacoast having shallow water is suitable

for fishing. However, agriculture is the most important activity o f

the country and employs about one sixth o f the total population.

Wheat is the most important crop and is produced in far excess o f

the country’ s requirem.ents that is exported to Asian and European

countries. Recently livestock products have also become important

and it now exports beef, bacon, fruit, cheese and egg.

■ Beginning of Co-operation

The communities settled there had to face number o f difficulties,

which could be solved only on a co-operative basis. Hence, the

beginning o f co-operation in an unorganized form is to be found in

very earl\' period ('t Canadian historx . Mowe\er, the real beginning

came only after 1870 and that too in the agricultural field, which

was the main occupation o f the people. The Prairie area is a long

4 6 distances and scattered settlements and farmers had to depend too much on the intermediaries in carrying on their export trade. That not only they were the victims o f these intermediaries, but also they had to also suffer at the hands o f the Railways and other transport agencies. Hence, the farmers were more concerned on the marketing .side so that by uniting, they might product their interests. So successfiil organisations on co-operative basis came to be developed on the marketing side. Co-operative Marketing

Associations ha\'e achieved remarkable progress in Canada.

Forms of Co-operative Societies in Canada

• Co-operative Marketing Association

• Purchasing Co-operatives

• Wholesale Societies.

• Service Co-operatives.

• Fishermen’s Co-operatives.

• Oil Co-operatives

• Production Co-operatives.

• The Credit Unions.

Co-operative Legislation There is no Co-operative Law at the national level in the country.

A ll the provinces have their own laws for the registration o f Co­ operative Societies. A ll the provinces have their own laws for the registration o f co-operative societies. In Ontario and Manitoba, there is no co-operative law. In these provinces, the Companies act has special sections for the co-operative organisations. In some provinces there are more than one Act dealing with different types

47 o f societies. However, all acts provide thai societies will work according to co-operative principles. Principle o f ‘ one man one vote’ prevails in all provinces. Co-operatives operating in more than one province are usually incorporated under a Dominion

Charter.

Special Features

After studying the development of the co-operative movement in the country, we may lay down its special features, which are as follows,

1. It is essentially an agricultural co-operative movement.

2. Another special feature is that Purchase Societies also act as

suppliers o f consumer goods, besides taking the supply o f

farm requirements to the members.

3. For the marketing o f wheat, the government has set up a

wheat marketing board, which is the sole purchaser o f wheat

from producers.

4. In Prairie Provinces, the pool organisations have developed a

system o f finance known as “Revolving credit System”

under which the dividends are not paid in cash but are

credited to the respective members’ deposit account.

To conclude, the movement has been built on strong and

scientific footing. It is mostly self-financed. The members

are keenly interested in the movement that has added much

to their prosperity and well-being.

48 2.1.13 Co-operative Movement in Israel ■ Historical deveiopment The co-operative movement in Israel has developed because o f the

efforts o f the Jewish nation to build up their homeland. It is the

product o f special circumstances facing the Jewish population. The

holy land o f Palestine has always been considered as their

permanent abode by the Jewish families scattered all over the

world and having been persecuted elsewhere, they were driven to

Palestine for permanent settlement. The fertihty o f the soil and the

climatic conditions differ from region to region and the rainfall is

also uncertain and unevenly distributed because o f which irrigation

is very important.

With the colonization o f the Jews in Palestine, the history o f co­

operation begins. In fact, the Jewish colonization in Israel is based

on co-operative spirit.

■ Co-operative Farming Co-operative farming in Israel has been introduced by Zionist

organisation which the main body for the colonization o f the Jews,

in order to overcome the economic problems o f the people settled

on the land in Israel, b}' taking recourse to co-operative farming,

the association provided them a decent living. In no other country

of the world has co-operative farming made such marvelous

progress as in Israel. Co-operative settlements known as

‘ K V U T Z A ’ have made such a great headway in the country that

they have got highest praise and admiration from the visitors all

over the world. There are three more types o f settlements, which

are as follows.

49 1. Private villages with individual farms ( Moshav) 2. Small holders’ Co-operative Settlements (Moshava Ovidum) 3. Mixed collective and co-operative settlements (Moshav Shitufi)

FnBdameiitel Pr!iidplei§ The flmdamental principles on which is based the organisation and working of these settlements are as follows. 1. Nationally owned Land. 2. Self-labor 3. Settlement to be the common property of all members 4. Collective production and consumption. 5. Collective education and rearing of children. 6. Mixed farming 7. “To get from each according to his or her capacity and to give to each according to his or her needs”.

Caiiseg of Siieeess; The collective settlements in Israel have achieved such a ^tremendous* success due to a number of factors, which may be enumerated as below; 1. As there was no land tenure system in the beginning, therefore, the colonists had altogether to bring entirely new land under cultivation. This did not, in the absence of land system, create any difficulty, such as that of hurting the love for land amongst the people. 2, The amount invested was so huge that it w'as unwise to leave off the work. Success could be achieved only through the continuous of the work already started upon and therefore,

5 0 there was no other alternative for Jews than to stick to the

work anyhow for which co-operative enterprises was the

only alternative.

3. The Jews were an enlightened people who realized that only

co-operative action and collective efforts in bringing land

under cultivation could bear fruit. This very idea helped

them in achie\'ing the goal o f success.

4. The Jews as a nation have the close religious affinities

amongst them and this very fact was at root o f the very

success o f these settlements.

• Other Forms of Co-operatives

1. Labour Co-operatives:

2. Histradrut:

3. Hevart Ovadim

4. Hamashbir Hamerkazi Limited. (Co-operative Wholesale Limited)

5. Tnuva Limited

6. Consumers’ Co-operatives.

51 2.1.14 Co-operatloii in Japan ® Historical Development The geographical coiiditions of Japan are such that the nature has

forced its people to come together to fight the natural elements in

order to make the living conditions easier for them. To protect

themselves'against the sudden and unforeseen dangers o f drau^ts

and floods dams and dikes have been constructed, co-operatively.

In the cultivation of rice, people work collectively. Fishing is

another important occupation of the Japanese and here people have co-operated in the use o f boats and nets in common. The Japanese

have natural attitude o f co-operation because o f the natural

environment.

The modem co-operative movement in Japan took its birth in 1900

■ - ■ , when the Co-operative Law was passed, co-operation was found to

be in existence in one form in Japan even in ancient times. In the

field o f finance, its origin can be traced from a very old and ancient

system o f the people’ s finance known as ko or Mujin which later

on came to be established in the form o f the “Hotakushas” .

Ko or M ulm :

A Ko or Mujin is a society formed by the friends o f a needy person

to help them financially. It corresponds to the chit fund system

prevalent in India. The members forming such a society agree to

subscribe monthly a certain sum o f money to the society. The

proceeds are then distributed amongst the members either by ballot

or by auction. .

5 2 The Hota Kusha The Hota Kusha is an outcome o f the ‘ Mujin’ . It is a permanent society for grant o f loans to the needy members and for this purpose, funds are raised compulsori!}' from the members.

Voluntary contributions from the members are also accepted on which interest is paid. These societies also accept deposits from members and so unlike the Mujins they come nearer to the credit societies. They also undertake social welfare activities.

Modern Co-operative Movement

The Co-operative Movement in Japan had started after the Meiji

Restoration’ increasing attention was paid by the State for the economic development o f the country. During this period, economic and social conditions prevailing in the country were hopeless. The petty farmers and small producers were in the grip o f the moneylenders and the traders, who were exploiting them fully.

To meet all thee challenge, the farmers had to think o f co-operative organisations. They took lead in establishing consumers’ co­ operative society to checking soaring prices. The first consumers’ co-operative society was organised in 1879, which was followed by many more societies o f this type in the next few years. Besides consumers’ co-operatives, credit co-operatives were also started in the country. However, the progress was very slow. The real progress started after 1900, when the government played an important role for the development o f the movement. It encouraged the farmers to organize themselves on the German lines. In 1900, the government also passed the credit co-operative law on the lines o f German Law. Under this law the co-operative societies are classified in four groups i.e. credit, marketing, purchasing and

53 utility. The progress o f the movement after the enactment o f the

law was much more satisfactory. The co-operative law was also

revised in 1906 to enable credit co-operatives to under take other

functions also. Because o f this, the number o f these societies

increased rapidly.

• Various forms of the co-operatives.

" Agricultural Co-operatives

■ Co-operative Fisheries

■ Forestry Co-operatives

■ Central Co-operative Banks

■ Mutual Insurance o f Agricultural Co-operatives

■ UNICOOP Jai)an :

It is a new organisation set up in 1961 by the Japanese agricultural,

fishery and forestry co-operatives, for conducting foreign trade

with many foreign countries like USA, China, England, Germany,

Australia, Russia, Thailand and India. It has established its

branches in some o f the important countries for this purpose. It

imports foodstuffs and cereals, minerals, machinery and chemicals

while its exports consist o f fruits, vegetables, fish, textiles,

fertilizers, chemicals radios, televisions and steel products.

54 2.2 History of Co-operative MoYemeiit m India

2.2.1 Historical Bevelopment aad Origin of the movemeat India is an agrarian country from the beginning. Its majority population lives in the rural area and they are depend upon the agriculture. British ruled it for two and half centuries. They exploited India’s market and protected their own goods with imperial preference. Famine had become a chronic feature of their rale. Due to this, farmers were under bad situation and as the result; they were under the burden of heavy loans of private moneylenders. For removing this problem people had an idea to start co-operative societies. Early efforts in connection with this were made in the 19* century.

For changing the worst conditions of farmers, British Government wanted to use some suitable measures and for that^ they appointed a committee under the President ship of Mr. Frederick Nicholson to study the German Co-operative Movement in 1892. This committee submitted its report to the government and strongly recommended the beginning of co-operative movement in the country. Govt, also appointed a Famine Commission in 1901. This commission also pointed out the urgency of introducing co-operation for helping the farmers in the country. .Taking into consideration of all these recommendations Government passed the first Co-operative Societies Act in 1904. This was the real beginning of co-operatives in the country. 2.2.2 Pre ladeueadeiice History of Co-operatlYe Movememt ia India ® First Co-operative Societies ; On 5^ February 1889 Mr. V. L. Kavathekar gathered workers and started “Anyonya Co-operative society “at Baroda, At present, this

55 society is converted into Urban Co-operative Bank. After passing

the first co-operative Act in 1904 on May 1905 the first Rural

Co-operative Credit Society was started at Dharwad in Karnataka.

Before that in October 1904 Urban Co-operative Credit Society

was started at Kanjwaram in Madras Province. These were the first

co-operatives in the country.

This history is studied with the help of following stages.

1. Period of early development (1904 -11)

The first co-operative Act was the real boost for the co­

operatives.. As this act permitted to start the Co-operative

Credit Societies only, many co-operative credit societies were

form ed'in the country. By the end o f the 1911, 5340 co­

operative societies were formed.

2. Period of Rapid Expansion (1912-18)

The act of 1904 had many shortcomings and for overcoming

these, the Reformed Co-operative Act was passed in 1912.

This act permitted to start other types o f co-operatives also and

as a result, rapid progress took place in co-operative sector.

During this period number o f co-operatives increased at four

fold as coxnpared with the first period. A t the end o f the 1918,

the number o f co-operatives was 25198 and the number o f

members was 10.9 lakhs.

3. Period of Unplanned Development (1919-29) The reformed co-operative societies act was for whole country

but the balanced development o f co-operation had not taken

56 place as the geographical, social, cultural and economical

conditions were different. As a result, government handed over

the co-operation department to the provinces in 1919 and they

were asked to prepare their own co-operative acts. It had

favorable impact and co-operation began to strike roots,

Bombay Province was the first to give the lead with an Act in

1925, followed by the Madras in 1932 and by other provinces

in due course o f time. Many co-operatives were started in the

country but there was no proper planning and so this period is

called period o f unplanned development. The progress o f non-

agricultural societies is special feature o f this period.

4. Period of Re-construction (1930-39) The great depression o f 1929 had adverse impact on co­

operatives in the country. This depression paralyzed the Indian

economy and specially the farmers. As the prices o f

agricultural goods decreased, the over dues was increased and

demand for loans were increased. This fact had adverse impact

on co-operatives. Many co-operatives were closed and some

were reconstructed and reorganized. Due to this first time in

the history o f co-operative movement, the number o f co­

operatives decreased. The formation o f Reserve Bank o f India

was the special feature o f this period.

5. Period of Re-development (1939 - 46) Full-fledged efforts were made in this period for redevelopment

of the co-operatives. The World War II had positive impact on

co-operative movement. Due to the inflation, the prices o f

agricultural goods increased and faiTners started to repay the

57 loans. The financial position o f the co-operatives improved and

many more co-operatives established in this period.

Consumers’ co-operatives. Industrial Co-operatives and Non­

credit co-operatives were formed in more numbers. At the end

o f the 1946, the number o f co-operatives was reached up to

1.7: lakhs.

2.2.3 After Independence History of Co-operative Movement in India

India has got independence on 15'*^ August 1947. For the progress o f

this movement, government made planned efforts. India adopted

Socialistic Pattern o f Society and for achieving this objective, the co­

operative movement has more importance.

A) Co-operative Movement before Planned economy (1947 to 1950);

Basically this period is used for policy making and fixing the

procedure to achieve the decided goals. The country was facing some

internal problems. For solving all these problems, non-stop efforts

were made and as the part o f these efforts, policies were framed to

develop the economy o f the country with the support o f the co­

operative movement and agriculture. Important event o f this period

was the formation of Rural Banking Committee in 1949. During this

period government adopted liberal policy towards the co-operatives

and so that the-movement was not affected.

B) Co-operative Movement during Planned economy (1950 onwards): Governrnem o f India adopted development through planned econoni\ and for that; Planning Commission o f India was

established in 1950. The First Five-year plan was started in 1950.

Objectives were fixed for the development of the co-operative

5 8 movement in each five-year plan. During this period, the country has overall development o f the co-operative movement. In each sphere o f life, co-operatives have started in the country. The rural development becomes possible only due to the co-operative movement. It has given economical, educational, political and social advantages to the public.

Some of the important types of co-operatives in the Country include,

1. Co-operative Credit Societies.

2. Co-operative Banks.

3. Co-operative Housing Societies.

4. Co-operative Consumers’ Societies.

5. Co-operative Fisheries.

6. Co-operative Poultry Farms.

7. Co-operative Electric Societies

8. Co-operative Sugar Factories.

9. Co-operative Oil Mills.

10. Co-operative Cotton Mills.

11. Co-operative Transport Societies.

12. Co-operative Industrial Societies.

13. Co-operative Producers' Societies.

14. Co-operative Marketing Societies.

15. Co-operative Educational Societies

16. Co-operative Agricultural Societies.

17. Multipurpose Co-operative Societies.

18.Tribal Co-operatives

19.Women Co-operative Societies.

20. Labour Co-operative Societies.

5 9 .3 History of Co-operative Moveioiieiit ie Mafiarashtra .3.1 Introduction and Progress of Co-ooerative movement in Maharashtra; The Co-operative Movement 'in Maharashtra has reach history as compare with the other parts of the country. From the beginning itself the economical and social conditions of the state is very good and so the beginning of the co-operative .movement in the coimtry has been started in this state.. Mr. V. L. Kavathekar started “Anyonya Co­ operative society “at Baroda in united Maharashtra on 5* Februaiy 1889. After the formation of Maharashtra state in I960, the state has achieved so much progress in the filed of Co-operation. It was folly supported by the political parties. Rural people come together and started many processing co-operatives and this situation had made tremendous change in the economical conditions of the rural people, Maharashtra has vital role in the history of Indian co-operative Movement. Dr. Dhananjay Gadgil, Dr. Vitthalrao Vikhe Patil, Dr. Karve had played an important role in the progress of the co-operative movement in the state. The co-operative societies have started in every field in Maharashtra. The department of Co-operation in the state has classified the co­ operatives in the five classes. These are Agricultural Co-operatives, Non Agricultural Co-operatives, Marketing Co-operatives, Producers Co-operatives and Service & allied Co-operatives. Service and allied co-operatives played an important role in the life of the people. Housing Co-operatives and Consumers’ Co-operatives are in more numbers. Producers’ Co-operatives include -Co-operative Sugar factories, Co-,

6 0 operative cotton mills, Oil seeds co-operatives etc. But more development is there in the agricultural and non-agricultural co­ operatives.

2.3.2 Some of the important types of co-operatives in the Maharashtra include, ^ 1. Credit Co-operative Societies: Mr. V. L. Kavathekar formed the first Co-operative Credit Society in United Maharashtra at Baroda in 1889. After passing the First Co-operative Act in the country, many credit co­ operatives have started in the state. These credit Co-operatives are classified in two categories. (1) Agricultural Credit Co­ operatives and (2) Non-Agricultural Credit Co-operatives. Agricultural Credit Co-operatives include the primary co­ operative societies at village level; these co-operative societies complete the need of finance of the farmer members. The Non Agricultural Credit Co-operatives supply loans to the members other than agriculture. This type includes Urban Co-operative Credit societies and Employees’ Co-operative Credit Societies. The number of both of these societies is very large in Maharashtra.

2. Producers’ Co-operative Society; This type of co-operative society belongs to the producers’ of different commodities. For processing and the marketing of these products, producers come together and form co­ operatives. This type of co-operatives has two types namely (A) Processing Co-operatives and (B) Industrial Co-operatives.

61 A) Processing Co-operatives: For getting fair price for the agricultural products, it should be properly processed. Farmers come together and form processing co-operatives for their goods. Some of the agricultural products cannot be used as it is obtained from the field so that they are processed properly. They include Sugar cane, .Cotton, Oil seeds, Fruits, Vegetables, Coconut, Rubber, Pulses, Jute, and Tea & Coffee etc. There are 52 different types of the producers’ co-operative societies. Some of the important processing co-operatives are as follows:

1. Co-operative Sugar Factories: The Co-operative sugar factory is one of the most developed, the largest and the most important types of the processing co­ operatives. The first co-operative sugar factory in India was stared by Mr. CVS Narsinha Raju at Eticopakka in Andhra Pradesh in 1933. The Pravara Co-operative Sugar Factory Ltd. started by Padmashri Vitthalrao Vikhe Patil in 1950 has its own importance because it was formed with modern and advanced technique. Maharashtra has more number of these sugar factories. In 1960, the number of Co-operative sugar factories in the state was just 20 but at the end of 2003, there were 202 Co­ operative Sugar Factories.

2. Co-operative Cotton Mills: This type is at second ranking in the state. However, it has equal importance like sugar factories in the co-operative movement. The first cotton mill was stared in 1951 in the country. This type is more developed in the districts where more production of cotton is taken.

62 3. Co-operative Dairies. This is an important co-operative society, which has helped the farmers for the economical progress. Due to this White Revolution took place in Maharashtra. Farmers associate together for collecting milk from small farmers and supplying the same to the Milk processing co-operatives.

B) Industrial Co-operatives: An industrial co-operative is a co-operative undertaking of artisan or skilled workers engaged in the cottage or small-scale industries to undertake production, purchases of supplies and raw materials, marketing of products and supplying other services to the members. Some of the industrial co-operatives are as follows; 1. Industrial Workshop co-operatives 2. Co-operative industrial estates. 3. Weaver’s Co-operati\ es. 4. Oil Crushing Co-operatives. 5. Handicrafts co-operatives. 6. Leather co-operatives.

3. Marketing Co-operative Societies. The co-operative society started by the farmers to perform all the functions for reaching the produced goods from the manufactures to the consumers is called marketing co-operative society. Marketing of the agricultural goods is very important and this society helps the farmers to complete the necessary requirements for supplying the agricultural goods to the consumers. The co­ operative marketing socieiv in the country was established in 1915 at Hubali. After that, these societies started in Maharashtra and

6 3 other states. These societies work at Taluka, district, state and national levels. National Agricultural Co-operative Marketing Federation works at national level, which is generally called as NAFED.

4. Housing Co-operative Societies. One of the essential needs of human being is shelter and for the common and poor people it is very difficult to have our own house for the same in urban areas. Housing co-operative society is the solution for these people. The co-operative society that makes available the land and the loan for the construction of houses is known, as housing co-operative society. The number of these societies in Maharashtra is more. In urban areas, flat ownership co­ operatives are very popular. The first co-operative housing society in India and in Maharashtra was formed in 1915 at Mumbai.

5. Agricultural Co-operative Society. It is a voluntary association of farmers for better utilization of resources including manpower and land pooled and which the majority of members participate in farm operations with a view to increase in agricultural production, employment and income. This form of the co-operatives is not so much developed in the state as well as in the country. At the beginning with the government assistance, 112 co-operatives were stared in the Bombay Province. In 1961, there were 443 Agricultural Co-operative societies in Maharashtra, but maximum of these were bogus and so Government took strict action against these societies and accordingly the number is reduced to 229. From 1981, government banned the registration of such societies.

6 4 6. Co-operative Consumers’ Societies. The beginning of the co-operative movement in the world is the consumers' co-operative society. The co-operative society of the consumers, by the consumers and for the consumers is known as co-operative consumers’ stores. In this type consumers, themselves associate together and fonn the co-operative society, which buys the goods directly from the manufacturers and sells to the members at reasonable prices. Due to these societies, the purchasing power of the member consumers increases. At the beginning, the progress of these societies was very slow, but during the World War II the number of these societies increased at a fast rate. Generally, unitary. Federal and Mixed types of consumers’ stores are inexistence in the country. At the end of the 2003, there were 3449 co-operative consumers’ societies in the state.

7. Co-operative Banks. This is the most developed form of co-operative societies in Maharashtra. The co-operative organisation, which accepts deposits and gives loans, is known as co-operative Bank. These banks are useful to rural as well as urban people. Due to co­ operative banks, rural people in Maharashtra get banking services. There are urban co-operative banks. District Central Co-operative banks and Women’s co-operative banks. These banks supply loans to the members as well as non-members for fulfillment of their different requirements. At present 35 district co-operative banks and 654 urban co-operative banks are in existence in the state.

65 8, Co-operatlves of Weaker sectioa. The economic9.1iy weaker section has taken advantage of the co­ operative societies for their economic development These societies include (a) Jungle workers Co-operatives, (b) Co-operative fisheries and (c) Labour co-operatives. These societies are very much helpful to the needy and poor persons of the above category. Through these societies, they get employment. At present, there are 2500. Co-operative fisheries, 8127 Labour Co-operatives a.nd 288 Jungle workers co-operatives.

2.3,3 Landmarks of the Co-operative Movemeiit Ik Maharashtra.^ The development and progress of the co-operative movement in Maharashtra is notable. It is possible due to the able leadership in co­ operative movement. Some of the landmarks in the co-operative movement in* Maharashtra gave the proper direction to the co­ operative movement. These landmarks are as follows: 1. SeBarate Co-operative Act; As per the policy decided by the union government in 1919, Maharashtra had passed its separate ‘Bombay State Co-operative Societies Act’ in 1925. The same act was renamed as Maharashtra State Co-operative Societies Act 1960. 2. Mrst Co-operatiYe Sugar factory: The establishment of the first co­ operative sugar factory in Pravara Nagar in Ahmednagar district is an important landmark of the co-operative movement in Maharashtra. Dr. Vitthalrao Vikhe Patil4. started ' this factory in 1948. After this, many co- Operative sugar factories and other co-operative societies started in Maharashtra. . 3. Three-tier system of Co-Qperatives: For strengthening the co­ operative movement Maharashtra, state has started three tier systems in the state. As per this system, there are primary co-operative

66 societies at village level, district co-operative banks at district level and state co-operative bank at state level. Particularly, this system is

very much useful for the agricultural credit.

4. State parttctpatioii in Share’Capital: Lack o f capital is the most important limitation in the progress o f the co-operatives and so that state government has decided to take part in the share capital o f the

co-operatives.

5. Limit 0B hoMliig office: For implementing true democracy in the co­ operatives,-government amended the co-operative act in 1983 and fixed the tenure o f the Chairman up to ten years. According to this

amendment, no member of the co-operative society will hold the

office o f the chairperson more than ten years. 6. Stattts of Scheduled Banks to, the ttrbaa co-operative baakg: The urban co-operative banks working in the state are liable to get status o f

the Scheduled Banks by the Reserve Bank o f India. The large size co­

operative banks in the state got this status and it helped to the banks

for increasing their deposits.

7. Co-operatlv© cottrts: The number o f co-operatives in the state is

more. There are disputes among these societies and delay in these

affects the progress o f the co-operatives. Taking into consideration

this situation government o f Maharashtra established separate co­

operative courts for the co-operatives in the state.

8. Co-OBerative TraiHiiig; For efficient working o f the employees, co­ operative training is an important factor and for this government has

made available the training facility to the concern people. A t district

and Regional levels, the government has started training centers.

67 2.4 Brief History of Banking

2.4.1 Introduction and Origin of the word ‘Bank’: Banks in modem times have a key role to play in the process of economic development. The Enghsh word bank is derived from the Italian words Banco, Bancus, Banque or Banc. The meaning of all these words is ‘bench’ upon which the mediaeval European moneylenders and moneychangers used to display their coins. Jews in Europe practiced it. These Jews possibly flourished mostly in Italy in the early years and hence the Italian word came into vogue.

2.4.2 Evolution of Banking in West; There is evidence of the existence of banking in most of the ancient civilizations of the world. Banking is believed to have existed in Egypt and Babylon as far as 2000 B.C. In Greece, the temples served as banks. In Athens, the individuals conducted the Banking business. The banking in Rome bears a close resemblance to modern banking. Merchants, moneylenders and goldsmiths are the ancestors of modern banking. The Jews started the banking business in their individual capacities during the 12‘*^ century A.D., their main function was money lending against interest. They started the business in Italy and subsequently spread in England. The earliest b&nk known in history was established in Venice in the year 1157. In Spain, the Magistrate of Barcelona established a bank in 1401. The Bank of Genoa was established in 1407. The bank that served as a model for many European banRs was the Bank of Amsterdam, established in 1609. In England, the goldsmiths were performing all the banking functions for many years. During the 16^'’

68 century, public banks had come into existence in some other countries of Europe. The Bank of Venice was started in 1515, while the Bank of Sweden was established in 1556. After receiving many complaints from the people against the goldsmiths, the British government established Bank of England in 1694. It was joint stock bank, which was empowered to issue notes in 1700. The first half of the 19'*’ century witnessed a growth of banking not only in England but also in many other countries of the world including India.

2.4.3 Evoiution of Banking in Indiai Banking is believed to have existed in the crudest form, in India, as early as Vedic period. Money lending was a common practice in India, with the ancient people. The Puranas and Smritis mention about money changing and money lending. Manusmruti contains references regarding deposits, pledges, policy on loans and rates of interest. Kautilya’s Arthashastra also speaks extensively on banking practices in ancient India. India had trade relations with most of the countries of the world. To facilitate trade, some banking facilities were obviously essential and were provided by traditional Indian bankers. These bankers are known as indigenous bankers and they were the forerunners of modern banking institutions because they perfonned functions of accepting deposits, giving loans and Facilitating trade by dealing in Hundis. When British came to India, there were several banking firms in the country doing traditional Indian banking business and even the British merchants took their help. The Indigenous bankers represented proprietorship or joint family firms. They were dealing with promissory notes, Hundis or bills of exchange.

69 Modem organized bariking in India, however, can be traced back to

17* century when the British traders established trade relations with India. British Agency Houses can be said to have started modem banking in India, in the second half of the 18* century. In 1770, the Hindustan Bank was stared at Kolkata. It was associated with the well- known agency house ‘Alexander and Company”. The Bengal Bank was established in- 1784. In 1786, The General Bank of India established as the first Joint Stock Bank with limited .liability. All these banks, however, were short-lived and their business coverage was limited and unbalanced. Modem banking was started with the establishment of Bank of Kolkata in 1806. The East India Company gave a charter of banking business to this bank in 1809 and it was renamed as Bank of Bengal. With the foil patronage and support of the East India Company, The Bank of Bengal started the issue of currency in 1823 and was permitted to open branches in 1840. In 1840, The Presidency Bank of Mumbai and in 1843 Presidency Bank of Kolkata was established. In 1920, these three banks were amalgamated to form the Imperial Bank of India, which became State Bank of India in 1935. The Indian Joint Stock Banks came to be established at the end of the nineteenth century. In 1881 the Audh Commercial Bank, in 1894 Punjab Nation.al Bank and in 1901 Peoples’ Bank were established. During the period of 1906 to 1911, several commercial banks like Bank of India, Central Bank of India, Bank of Baroda and Bank of Mysore were established. Thus, the rise and growth of modem joint stock banking in India can be traced to the beginning of twentieth century.

70 2.4.4 History of Co-operative Banking in India The origin of co-operative movement in the country is co-operative banking. In ancient times farmers used to take loan from the private moneylenders against high rate of interest. For changing, the worst conditions of farmers and poor workers co-operative credit societies were formed at the beginning. After passing the first co-operative act in 1904, many co-operative credit societies and banks have established in the country. In 1889, '‘Anyonya Co-operative society “at Baroda was started. At present, this society is converted into Urban Co­ operative Bank. In 1905, the first Rural Co-operative Credit Society was started at Dhanvad in Karnataka. Before that in October 1904 Urban Co-operative Credit Society was started at Kanjiwaram in Madras Province. This is the real beginning of the co-operative banking in the country. In 1906, the first district central co-operative bank was started in Uttar Pradesh. State co-operative banks and urban co-operative banks have also started for rendering banking services to the people. The State Co-operative Banks were also started in the country and in 1911; Maharashtra State Co-operative Bank was established. Land Mortgage Banks were also stared in the country. In 1929, Central Land Mortgage Bank was started in Madras. In 1935, The Bombay Provincial Co-operative Land Mortgage Bank was started in Mumbai.

71 ® Reference; L Sahakari Banking, Prof. G S Kamat,Chiranjiv Granth Prakashan, Pune, 1962 2. Co-operation in Foreign Land: 'Dr. C B Mamoria & Dr. R D Saksena, Kitab Mahal, Allhabad. P 3 -6. 3. Sahakar, S. S. Mai±ar, Nirali Prakashaa, Pune, 2006, p 6.1 4. Ibid, p 6.15

72 CHAPTER - III RESEARCH METHODOLOGY

3.1 Importance of the Study in Ahmednagar District 3.2 Need of the Study 3.3 Objectives of the study 3.4 Hypothesis 3.5 Methodology used for Survey 3.6 Limitations of the Survey 3.7 Plan of Research

73 Chapter III Research Methodology

3*1 Importaace of the Study iii AhmedKagar District; Ahriiednagar district is the largest district in Maharashtra state. It has • • foiarteen Tahsils tod having area of about 17412 Sq Ktn, which come to about 5.66 % of the total area of Maharashtra. Ahmednagar district has made a significant contribution for the development of this sector in the state. According to the number of co­ operatives, Ahmednagar district stood seventh in Maharashtra. It has all types of co-operative organizations. On 31®* March 2009, this number was 9468. Out of these, 2545 are the co-operative credit societies and the percentage of these societies is 26.97. This number includes Primary- Co-operative Credit Societies (1287), Urban Co-operative Credit Societies (1017), Urban Co-operative Banks (24), Employees co-op credit societies (215), District Cenlial Co-operative Bank (01) and Land Development Bank (01). Therefore, the number of Urban Co-operative Banks is notably high. ^

3.2 Need of the Study: The economic conditions in urban and rural areas are not homogeneous. The finance is a basic need of each type of business. The need of finance in rural areas is satisfied by the District Co-operative Banks. There are many nationalized and private banks in urban areas. However, small businessmen, industrialists, artisans and other people do not get sufficient finance from these sources. For solving this problem, people themselves have started Urban Co-operative Banks.

74 Out of 650 Urban Co-operative Banks in Maharashtra covering six divisions, Nasik Division has 113 Banks and out of that, 24 Urban Co­ operative Banks are there in Alimednagar district. / Hence, on such background this research work intends to study the working of such large number of banks.

Oblectives of the stttdv: The objectives of the present study are as follows : 1. To evaluate and have overall review of the co-operative movement in India and Maharashtra in general and in Ahmednagar district in particular. 2. To study the history and development of urban co-operative banks in district. 3. To study the organizational structure of urban co-operative banks. 4. To assess & make comparative study of the financial strengths and weaknesses of urban co-operative banks in Ahmednagar district. 5. To evaluate the progress of the members of the UCBs in the district. 6. To study the problems of customers and employees of UCBs in the district. 7. To study the problems being faqed by the UCBs in the district. 8. To give suggestions and recommendations with a view to improve the financial strengths and working system of UCBs in general with particular reference to Ahmednagar district.

3.4 Hypothesis; 1. Maximum people have become members of Urban Co-operative Banks to avail loans. 2, As compared with other sources of finance Urban Co-operative Bank source is very easy to avail.

75 3. The Urban Co-operative Banks in Ahmednagar district are lacking in professional management. 4. The Urban Co-operative Banks in Ahmednagar district are facing substantial problems like non-performing assets, administration, personnel etc.. 5. The productivity per employee of UCBs in Ahmednagar’city is more than the UCBs in the rest of the Ahmednagar district, 6. The profitability per employee of UCBs in Ahmednagar city is more than the UCBs in the rest of the Ahmednagar district.

3.5 Methodology used for Survey

Primary Data; 1. The primary data have been collected first by conducting interviews with the help of questionnaires and schedule. 2. Purposive sampling method has been used for the respondents of all types. This method was used because the samples selected for collecting primary data of these UCBs is homogeneous, small and less in number. 3. All managers and selected employees filled the questionnaires themselves, while questions were asked to some of the remaining respondents who did not Icnow English. 4. There are 21 Urban Co-operative Banks. One bank has not responded, hence 20 banks have been visited by the researcher for the collection of primary data. 5. The primary data has been collected from the managers, chairpersons, directors, employees and customers of concerned banks and for this researcher has visited all places of these banks.

76 Secondary Data; 1. The secondar}'' data has collected from the various published work, periodicals and annual reports of the co-operatives. 2. For collecting this data researcher visited the offices of DDR, Asst. Registrars of Taluka, Ahmednagar District Co-operative Board and some other establishments related to co-operatives within district.

3.6 LImitatloiiss of the Survey The present survey has following limitations 1. Questionnaires were prepared in English only: 2. Two employees per UCB- were selected for collecting data: The number of employees in all UCBs is more, but for getting information with the help of questionnaires only two employees were selected. 3. Ten customers per UCB were selected for getting information: The number of account holders of these banks is also more, but out of those only ten customers who were available by the time were selected for collecting the primary data. 4. Two directors and five members per UCB were selected for collecting Data: The number of directors and members is also more in these banks, out of the total directors and members only two directors and five members were selected for the questionnaires. 5. The data collected from UCBs is of five years fi-om 1®* April 2004 to 3 March 2009. 6. Limitations of statistical methods used: a) There are many statistical methods, but only the t - test which was suitable, was used for testing hypothesis. b) For selection of respondents the purposive sample method was used. This method has its own limitations.

77 3.7 Pteffl o f Research; ® Design of Questionnaire ® Purposive Sampling. ® Tabulation/Classification, of Data ® Analysis / Interpretation of data ® Graphical / Diagrammatic presentation of data ® Comparative study of individual UCBs.

Table'No 3.1 PistribMtloii of Samples for onestioiiaatres Category of Number of Number of' Total No. of Resposdeiits qe^stlomiaires UCBs’elected respondents Manager 01 20 20 Bank 02 20 40 Employees Bank 10 • 20 200 Customers Chairperson/ 02 20 40 Directors Members 05 20 100 Grand Total 20 20 400

The details of distribution of samples are as follows; 1. Manager: Every bank has one Manager or Chief Executive Officer. For the selection for manager’s questionnaire ‘Census’ method is used. Accordingly, all 20 managers are selected for the purpose.

78 2. Bank employees: Purposive sample method is used for the questionnaire prepared for the employees. Any two employees which were available were selected for the same. 3. Bank Customers: For selecting customers for questionnaires puiposive sample method was used. Any ten customers who'were available on the date were selected for the same. 4. Chairperson or Directors : For this questionnaires also purposive method is used. If the chairperson was not available, then any one director was selected for this purpose. 5. Members : Here also purposive method has been used where any five members were selected for the questionnaires made for the members.

References: 1. Co-operative Movement at a Glance in Maharashtra - 2009, 37* Issue, published by Co-operative Department of Maharashtra State. P.68 2. List of UCBs obtained from the DDR, Co-operative Societies, Ahmednagar

79 CHAPTER - IV REVIEW OF LITERATURE

4.1 Laws before Independence 4.2 Laws after Independence 4.3 Committees, Study Groups and Commissions Before Independence 4.4 Committees, Study Groups and Commissions after Independence 4.5 Review of Research Articles

V.

80 Chapter IV Review of Literature

A Laws before ladepeisdeEce; 1. Iiidlaii Coatract Aet 1872; Banking is a special type of business. The law of contract is the foundation upon which the superstructure of modem business is built.

The law of contract was enacted which lays down the legal rules

relating to promises, their formation, their performance and their enforceability.

A Contract essentially consists o f two elements:

(1 ) A n Agreem ent; (2) Legal Obligation i.e. A duty enforceable by law. A g re e m e n t = O ffe r + Acceptance. The Indian Contract Act came into force from 1®* September, 1872. The Act applies to the whole o f India except the state o f Jammu and Kashmir.

There are two parties in an agreement. As such banking agreement

involves two parties namely Banker and Customer. The Indian

Contract Act was mainly enacted to ensure that the obligations

prescribed by agreement and the reasonable expectations created by

them are fulfilled by the concerned parties to the agreement.

3. Negotiable ImstriimeMts Act 1881; The term 'negotiable instrument’ literally means ‘a written document . transferable by delivery’. The law relating to Negotiable Instrument is

contained in the ‘Negotiable Instrument Act, 1881’ . The Act came into

force on 1®* March, 1882,

81 The following instruments have been recognized as negotiable instruments by statute or by usage or custom: (i) Bills of Exchange. (ii) Promissory notes (iii) Cheques. (iv) Government Promissory Notes. (v) Treasury Bills. (vi) Dividend Warrants. (vii) Share Warrants. (viii) Bearer Debentures. (ix) Post Trust or Improvement Trust Debentures. (x) Hundis. (xi) Railway Bonds payable to bearer, etc. Money orders and postal orders, deposit receipts, share certificates, letters of credit, bills of landing, dock warrants, railway receipts etc., however not negotiable instruments. According to section 13 of the Negotiable Instruments Act, “a negotiable instrument means a promissory note, bill of exchange or cheques payable either to order or to bearer.” This Act has importance in banking business, because nearly all the banking transactions are related to this Act. The rules regarding the use of negotiable instruments have been given in this Act. The Negotiable Instruments Act, 1881 has been amended by [“The Banking Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988” w.e.f 30'’’ December, 1988.^

3. Bankers Book Evidence Act, 1891: The banking business have specific nature, however, the books of accounts maintained by the banks differ from those maintained by

82 the normal manufacturmg and trading concerns. Banking records are classified into three majdr parts namefy Books, Ledgers and Registers. There are some cases in the court relating to bank transactions, then bank would have to take their books of account in the court as and when tliey are required and thus, there might be possibility of stopping the daily transactions of the banks. Therefore, the Baiikers Book Evidence Act, 1891 has given the permission and facility to banks to present only true formats and certificates of other necessary matters instead of taking the whole books of accounts.

4 Indlaa Stamp Act 1899: No stamp duty is prescribed for cheques under the Indian Stamp Act. Many times the bank deals with documents such as Promissory* Notes, Letter of Credit, Transfer Contracts etc. In such legal cases, a stamp of necessary amount has to be stuck on these documents to make them valid. Therefore, the banks are related to the Indian Stamp Act in their daily routine of work. The Government has executed new increased rates of stamp duty from 15* September, 1996 about the amount of stamps to be stuck on the documents by the banks. The Bombay [Mumbai] Stamp Act, 1958 is applicable to some special documents in Maharashtra state. The rates of stamp duty about some documents are fixed while in case of other documents they are depend upon the price of related secured property. As per Bombay [Mumbai] Stamp Act, the rates of stamp duty are as follows:

83 1) The documents having fixed nature of' stamp duty namely Promissory Notes, Kararnama, Dastakpatra, Lawadnama, Tadjod patra, Mukhtyar patra etc.

2) The documents requiring stamps duty in proportion to the amount namely Hypothecation Contracts, Hire-purchase Contracts, Purchase Contracts, Exchange documents. Prize documents, Pledges, Distribution Documents, Trusts, Security Bonds etc. 5. Indian Co-operative Credit Societies Act, 1904: Prior to 1904, co-operative societies could not be organized under the recognized legal form except under the Indian Companies Act. The First Indian Co-operative Credit Societies Act of 1904 following in the foot steps of the English Friendly Societies Act, 1793 and the Industrial Provident Societies Act, 1893 was passed to encourage thrift, self help and co-operative keeping in view the rural and urban primary credit societies in particular.

6. Indian Co-operative Societies Act, 1912; This Act had to be passed to facilitate the registration of all types of co-operatives including Co-operative Federations. The central law is still the basis of co-operative legislation in the country. A perusal of the Act reveals that it rotates round two axes - the Society and the Registrar. It subjects the societies to restrictions in respect of their formation, contribution management, working, property, funds and dissolution though at the same time, confers benefits and privileges on them. The Registrar has been conferred with vast powers of registration, inspections, audit administrations, suppression, adjudications and dissolution of societies.

84 !;C(’ '

7. Reserve Bank of ladk Act 1934; The Reserve Bank of India is the Central Bank of the country. The Reserve Bank of India Act passed in 1934, RBI has been established as a body corporate under the ‘Reserve Bank of India Act' which came into effect from 1®^ April 1935. The RBI Act has been amended from time to time. The general supervision and direction of the bank’s affairs is vested in the ‘Central Board of Directors’, For each of the regional areas of the country viz. Western, Eastern, Northern and Southern, there is a ‘Local Board’ .with headquarters at Mumbai, Kolkata, New Delhi and Chennai. Local Boards consist of five members each appointed by the Central Government. The functions performed by the ‘Reserve Bank’ can be classified into three categories 1) Central Banking Functions: Issue of bank notes, Banker to Government, Bankers Bank, Custodian of Foreign Exchange Reserves and Controller of Credit. 2) Supervisory Functions: Licensing and establishment, branch expansion, liquidity of assets, working, amalgamation, reconstruction and liquidation of commercial and co-operative banks. 3) Promotional fonctions : Keen interest in setting up and development of specialized financial institutions, establishment of ‘Regional Rural Banks’ and ‘National Housing Bank’, assistance in establishment of ‘Export-Import Bank of Indja’ and encouragement and promotion of research in the area of banking.

85 4.2 Laws after ludeoeadeEce; 1, BaiiMBg Regiilatioii Act 194^ The Banking Regulation Act was passed to consolidate and amend the law relating to banking companies. It came into effect from 16* March, 1949 and applies to the '%'hole of India. The Act was passed with the objective of overall progress in banking sector. Firstly, the * name of this Act was as *Ba.nking companies Act’ but from March, 1966 it has been given the present name. The Banking Regulation Act was further amended by ‘Banking Laws 'Amendment] Act, 1983', ‘Thfe Banldng Financial Institutions and Negotiable Instrument Laws [Amendment] Act, 1988’ and The Banking Regulation [Amendment] Act, 1994’. The following points are noteworthy regarding application of the Act to Co-operative Banks. . a. The Act applies to all co-operative banks [w.e.f. March, 1966] whose paid up cajjital and reserves are of Rupees one lakh or more. b. The Act applies to all iState and central co-operative banks irrespective of their paid-up capital and reserves, c. The provisions of the Act are applicable to co-operative banks as modified by action of 56 of the Act, which rewrites several sections of the Act for their exclusive application to co­ operative banks.

The Act does not apply to: a. All primary agricultural credit societies. b. Non-agricultural primary credit societies with paid-up capital and reserves of less than Rupees one lakh. c. All Co-operative credit societies whose principal business is not

86 banking but which accept deposits only from members and provide financial help only to them. d. All co-operative societies not carrying on banking business. e. Land Mortgage Banks.

2. State Bank of India Act, 1955: In 1955, Imperial Bank of India was nationalized and was renamed as ‘State Bank of India’ as per recommendation of the ‘Rural Credit Survey Committee’ appointed by the ‘Reserve Bank of India’. The State Bank of India together with its subsidiaries [popularly known as ‘State Bank Group’] is the largest commercial bank in India in term of branch network, resources and manpower. Based on numbers of its branches, it has largest office network of its kind in the whole world. In the world setting, it is the only Indian bank, which finds a place within the hundred big banks in the world in term of assets. SBI has a special place in India’s Banking business. It works as an agent of ‘Reserve Bank of India’, where there is no branch of RBI. The SBI has also been granting short-term credit facilities to the co­ operative banks against Government securities at a concession rate of interest.

3. Maharashtra-State Co-operative Societies Act, 1960; The co-operative is a state subject under the constitution and the circumstances differ from State to State, Uniform Acts, Laws and Byelaw for the country as a whole are neither practicable nor desirable. Therefore, a separate law viz. ‘Maharashtra State Co­ operative Societies. I960' was passed by Government of Maharashtra to cover all co-operative societies and banks. This Act has 14 chapters divided into 167 sections.

87 The important provisions of this Act relates to various aspects of co­ operative banks such as Registration of co-operative banks^ Bye-laws, Membership, Fund and Properties, Management, Audit and Inspection, Settlement of disputes, Liquidation, Rights of the State Government, Maximum limit of shares holding, Recruitment, purchase of vehicles, etc.

4, Deposit Insarasice Corporatioffl Act 1961; The deposit Insurance Corporation Act was passed in 1961 by the parliament and this corporation came into existence on 1®*^ January, 1962. From 15* July 1978, it took over the undertaking of the ‘Credit Guarantee Corporation of India Ltd.’ [a public limited company promoted by the RBI on 14* January, 1971],. with a view to integrating the twin and cognate functions of giving protection to small bank depositors and providing guarantee covers to credit facilities extended to certain categories of small borrowers belonging to the weaker sections of society. With the integration of the two organizations, the corporation was renamed as the ‘Deposit Insurance and Credit Guarantee Corporation’. Insurance of bank-deposits is intended to give a measure of protection to depositors, particularly the small depositors, from the risk of loss of their savings arising from bank failure. Such protections by infusing confidence in the minds of people assists in-developing banking habits and contribute to growth of the banking system, so that the savings of the community could be utilized for purposes according national priority. The Corporation is a wholly owned subsidiary of the RBI. The Head Office of the Corporation is a.t Mumbai. The corporation has its branches at Mumbai, Kolkata, Chennai and New Delhi. Deposit

88 Insurance Scheme provides automatic coverage for deposits of all functioning commercial banks in India. Following an amendment to the "Deposit Insurance and Credit Guarantee Corporation Act’ in 1968, similar coverage is also extended in respect of deposits with co-operative banks in such of the states as pass the necessary enabling. legislation amending their local co­ operative societies Acts. The scheme provides insurance covers to every depositor to extent of Rs. 1,00,000/- [w.e.f. May, 1993] of the balance standing to the credit of his account.

5. Indian Income Tax Act, 1961: The Indian Income Tax Act 1961 was passed by the Parliament in 1961. The Indian Income Tax Act came into force on 1"‘ April, 1962. The Act contains 298 sections and as amended up to date. The Finance Act passed every year during the budget sessions of the parliament prescribes the rates of income tax applicable on the income during the forthcoming financial year. As per definition of person stated in the Income Tax Act, Co-operative societies are coming under “Association of Persons” and they have separate legal entity.

6. Banking Laws [AmendmentI Act, 1983: The Banking Laws [Amendment] Act, 1983, is an important piece of legislation which amended the Banker’s Books Evidence Act, 1891 the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949 the State Bank of India Act, 1955, the State Bank of India [Subsidiary Banks] Act, 1959, the Banking companies [Acquisition and Transfer of Undertaking] Act, 1970, the Regional Rural Banks

89 Act, 1976, and the Banking companies [Acquisition and Transfer of Undertakings] Act, 1980.

7. Consumer Protection Act. 1986: The law relating consumer protection is contained in the ‘Consumer Protection Act, 1986'. The Act mostly applied to goods and services. The Central Government may, however by notification published in the Official Gazette exempt any goods or services [section 1]. The Act passed by the parliament in the year 1986. The provisions of chapters I, II and IV came into force on 15*'’ April, 1987, and of chapter - III on 10‘*’ July, 1987. The Act extends to the whole of India , except the state of Jammu and Kashmir. The Act, as amended by the ordinance promulgamated in June, 1993. The basic object of the Act is to protect the interest of consumers. It is very an effective weapon in the hands of consumers. The definition o f‘Service’ is given in this Act, as follows. Service [section 2(1) (0 )] - Tt means Service of any description which is made available to potential users. It includes the provision of facilities in connection with (a) banking (b) financing (c) insurance (d) transport (e) processing (f) supply of electrical or other energy (g) .boarding or lodging or both (h) house construction (i) entertainment, amusement or other purveying of news, or other information’. ‘Service’ however does not include the rendering of any service free of charge or under a contract of personal service. Therefore, Banking is a service and which is directly related with customers.

8. Banking, Public Financial Institutions and Negotiable Instruments Laws [Amendment! Act, 1988: The Banking,, Public Financial Institution and Negotiable Instruments

90 Laws (Amendment) Act [No.66 of 1988], passed by the Parliament in December 1988, amends a number of Acts relevant to the banking industry and other public financial institutions.

The important Acts relating to banking amended by this Act are the ‘Negotiable Instruments Act, 1881’ the oldest amongst the Acts amended, the Reserve Banks of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the State Bank of India [subsidiary Banks] Act, 1959, the Banking Companies Acquisition and Transfer of Undertakings] Act, 1970 and 1980, the Regional Rural Banks Act, 1976. And it also amends the Deposit Insurance Credit Guarantee Corporation Act, 1961, the Industrial Development Bank of India Act, 1964, the Export-Import Bank of India Act, 1981, the National Banks for Agriculture and Rural Development Act, 1981 and the Industrial Reconstruction Bank of India Act, 1984. Thus covering a wide range of public financial institutions in the country, various provisions of the Act came into force on different dates as notified in the official gazette. The act is an important landmark in the history of enactments affecting public financial institutions and banking industry. It uses a practical approach to discourage the withholding of payment on Negotiable Instruments on due dates by increasing the interest rate payable on a Negotiable Instruments from the due date, till the date of actual payment. The Act enhances the acceptability of cheques in settlement of debts and other liabilities of making the drawer of dishonored cheques liable for punishment. The amendments to the Acts affect the public. Financial institutions are mainly aimed at changing the accounting year of the institutions for smooth functioning of the financial system in the economy. The Act also

91 enables the Government to increase the paid up capital of banks. Indian banks with a better equity base stand a better chance of competing with other banks in the international arena.

Besides the above Acts, following Acts are also related indirectly to the Co-operative Banks, viz.: (i) Transfer of Property Act, 1882. (ii) Code of Civil Procedure, 1908. (iii) Provincial Insolvency Act, 1920. (iv) Imperial Bank of India Act, 1921. (v) Bombay Co-operative Societies Act, 1925. (vi) Sale of Goods Act, 1930. (vii) Indian Partnership Act, 1932. (viii) Payment of Wages Act, 1936. (ix) Employees Provident Fund Act, 1952. (x) Payment of Bonus Act, 1965. (xi) Payment of Gratuity Act, 1972. (xii) Regional Rural Bank Act, 1976. (xiii) Nation Bank for Agriculture and Rural Development Act, 1981. (xiv) Co-operative Banks Rules, 1885. (xv) Banking Regulation [Amendment] Act, 1991. (xvi) Recovery of Debts due to Banks and Financial Institutions Act, 1993. (xvii) Bombay [Mumbai] Stamp [Amendment] Act, 2002. (xviii) Securitization and Reconstruction of Financial Assets and Enforcement of Security Estate Act, 200, etc.

4.3 Committees, Study Groups and Commissions Before Independence 1. Maclagan Committee, 1914: With a view to ensuring that the co-operative movement was

92 development on sound lines, the Government o f India appointed a

committee under the Chairmanship o f Sir Edward Maclagan in

October 1914. Tlie task before committee was to review the

progress o f the movement and report whether the movement was

progressing along the right lines.

The Maclagan Committee submitted its report in 1915. The

committee in its report, made suggestions for constructive

proposals for healthy development o f the co-operative movement

The committee suggested the following classification o f societies.

(i) Primary Societies,

(ii) Co-operative Unions,

(iii) D.C.C. Banks, and

(iv) Provincial Co-operative Banks.

The committee clearly stated that to teach the importance of

general banking principles, to the higher and middle class people,

the urban co-operative credit societies could do this useful task.

2. HiltoE YoiiMg Commissloii, 1925:

The central Government appointed the Hilton Young Commission

in the year 1925. The Hilton Young Commission in 1926

recommended that the establishment o f a central bank. The Hilton

Young Commission had given a detailed report regarding the

name, structure and functions o f the proposed central bank.

Therefore, after setting recommendations from this Commission,

the Government introduced a bill in the Indian Legislative

Assembly .in January 1927, but the bill was dropped on

constitutional grounds. Thereafter, it took seven years to pass the

Act in 1934, establishing it as a shareholders bank.

93 3, Central Baiikmg Eaqiilrv Committee, 1930? In 1930, there arose a great world depression; however, it did not affect on the gro\¥th of ‘Urban Credit Societies’. At that time, a committee was appointed to study the banking business in our country. The committee also studied the urban co-operative credit societies. The main recommendations of the committee were: ( i ) A Central Bank for the whole country should be immediately created. (ii) There should be separate ‘Land Mortgage Bank’ on

provincial level for each province.

(iii) Urban banks should provide financial assistance to

the small traders, vendors, intermediaries and

needy persons.

4. Pmrvlew by Reserve Bank India, 1939-40;

During this period, number o f Urban Co-operative Credit Societies and Urban Co-operative Banks gradually increased day by day. Their progress can be assessed from the following observations o f

the Reserve Bank o f India made in the purview o f the co-operative

movement in India in 1939-1940. Urban Credit Societies and

Urban Banks are the most important features o f the urban co­

operative movement in India and make up some extent for the absence o f joint stock banking facilities in the smallest towns.

5. Rova! Commlssioii o e M o iie ta ry and Batiking System, 1940;

This commission recommended the general direction o f advances.

94 6. Co-operattve PlaBiiieg CoiSimittee, 1945: The Government' of India appointed this committee on the recommendation o f‘Fourteen Registrars’ conference in 1945. The committee suggested that all offices employing 50 persons or more and every mill or factory should organize employee’s co­ operative credit societies for providing the credit needs of its workers and for promoting habits of thrift.

Go-operative Plamniffig fSaraiya) Committee,. 1947; The Government of India established the ‘Co-operative Planning Committee’ in 1947 under the chairmanship of Mr. Ramanlal Saraiya the great leader in the field of co-operative .movement. The committee stated the importance of the ftinctions of the urban co­ operative banks. The committee stated that, it is very much expensive to give small loans and to recover them. Therefore, Joint Stock Banks have no interest at all in giving loans and advances to the small businesspersons. On the contrary, the urban co-operative banks have cordial and affectionate relations with the people having lower income. Therefore, such type of Urban Co-operative Banks feels trustworthy fi*om the point of Mfilling the credit requirements of the low-income groups. The committee has the essentials of an Urban Co-operative Bank, as it should accept current deposits. It should transfer 1/3 amount of net profit to the ‘Reserve Fund’ till the ‘Reserve Fund’ equals the paid up capital and after that 1/4* amount of net profit should be transferred to the ‘Reserve Fund’, 14 Committees. StMcty Groups aad Cominissioias after ladeBeadeEce; 1, Rural Bankiag Enqiili'T Committee, 1950: The Rural Banking Enquhy Committee appointed under the

95 ■ cjiai-maii'sMp of Mr. Pumshottaili Das in 1950/ ■ ' " ’ . ■ Tile committee expressed that, Urban Co-.operative Banks can np|^ly.pit»an,^ but of the rural people' also.;,As these' types of banks and societies have lower administrative expenses, they, can perform. well in the small sections at Block (Taluka) level also.

2.' Ail India Rural Credit SarveY Committee, 1954; In India, the Financial Planning started from the year 195L The Banks got the utmost 'importance in the Financial and Industrial development of our country. After the beginning of planning, there was tremendous growth in the bank deposits. The RBI appointed a committee to review the rural credit under the chairmanship of Mr, A.D. Gorwala. The Report' came out in 1954 with its famous observation “co­ operation has failed but co-operation must succeed.” It also included authentic data to the planning commission for the formulation of a definite policy for reorganization of the movement. The main reconmiendations. of Rural Credit Survey Committee were: (i) State-Partnership. (ii) Establishment of State Bank of India. ■ (iii) Co-operative Training. (iv) Reorganization of the. Credit Movement. (v) Effective Supervision and Audit. 3« Committee oe Co-operative Law, 1957; The committee noted that, if an employer could deduct from the salary of an employee every month the installments due from the

96 employee towards a loan obtained from his co-operative credit society or bank, the working of such societies could be greatly facilitated. The committee added that there are no such provisions in the Acts in force in most states. The model co-operative society’s bill prepared by the committee provides for deductions from and employees salary to meet his dues to the credit society, if the employees executes an agreement to this effect. Another important recommendation of the committee was the provision regarding constitution of Managing Board in a tripartite body representing the state [not more than 3 members], the societies and the individual members.

4. RBI Survey of Urban Co-operative Banks, 1958-1959: In the year 1958-1959, Reserve Bank of India appointed a study group to review the working of Urban Co-operative Banks. The survey conducted about knowing the collection of deposits, investment of funds, success or failure of the banks and the overall working of'the banks. The Survey Report has given its opinion that though there is possibility of increase in loan demand for the household reasons of the families, there banks should given maximum importance to give loans which will be helpful to increase the economic capacity and welfare of their members. In the survey Report of RBI, it is clearly stated that 'Urban Co­ operative Banks’ should give stress on providing loans and advances which will helpftil for the production fianction, from the view point of fulfilling credit requirements of the low income groups in the society. To provide finance to small entrepreneurs should be future direction of development of these banks.

97 5. Committee on Co-operative Credit, 1959: The Expert Committee on Co-operative Credit appointed under the chairmanship of Vaikunth L. Mehta in the year 1959. The committee submitted its report in the month of May of 1960. The Expert committee recommended: (i) Development of village community as a primary co-op. unit. (ii) Participation of the state in share capital and subsidies etc. (ill) Deposits are attracted to develop internal sources. (iv) Need for an efficient and effective Audit.

6. Study Team on Co-operative Training, 1961: The Study team on ‘Co-operative Training’ made following specific suggestions: (i) Contribution of at least one per cent of the net profit for training and development. (ii) Constitution of the ‘National Board of Co-operative Training’. (iii) To set up ‘National Institute for Advanced Studies and Research in Co-operation.

7. Study Group on Credit Co-operative in the ‘Non-agricultural Sector’ fV.P. Varde Committee], 1963 : The Central Government appointed ‘Study Group on Credit Co­ operative in the Non agricultural Sector in 1963’ under the chairmanship of Mr. Vamanrao Varde to study the working of Urban Co-operative Banks, Employees Credit Societies and Non- Agricultural Credit Societies. The Study Group made following suggestions-

98 (i) The Urban Banks can teach the general banking principals to middlemen and workers in the urban and semi-urban areas through encouraging their habit of savings. (ii) Town with a population over one lakh should have one Urban Co-operative bank. (iii) The amount of savings collected by the Urban Banks can be used for the industrial purposes and hence the economic development of the country can be achieved. Moreover the committee has given detailed suggestions in respect of definition, minimum number of members, area of operation, minimum share capital, elections of the Board of Directors and training to the Directors, etc. for the Urban Co-operative Banks.

8. Study Group on Co-operative under Railways, Posts and Telegraph Department, 1963: The Study group pointed out that Government employee particularly in the lower income group constitutes a more vulnerable section than is generally recognized. The vast majorities of the Government employees do not have any accumulated savings and are compelled to borrow from time to time. “There can be no better alternative source that a co-operative society offering credit at the lowest possible cost.”

9. Committee on Co-operative Administration, 1963; The committee on ‘Co-operative Administration’ appointed in April 1963 under the chairmanship of Shri. V. L. Mehta. The main objective of appointing this committee was to review the

99 departmental set up and to suggest guidelines for determining the strength of departmental staff at various levels. The committee made following main suggestions: (i) Audit should be the statutory Function of the Registrar. (ii) Central Co-operative Banks should take the responsibility of supervising primary credit societies. (iii) Separate staff should be appointed for liquidation work and for effecting recoveries. (iv) Suitable training should be given to the departmental and institutional staff. TK 12.18 4 10. Stiidy Group ©m the Problems of Co-operative OveF-diie Loams IPate Committee^ 1972 : The Reserve Bank of India appointed a committee to study the problems of co-operative over-due loans under the chairmanship of Dr. C.D. Date, Officer of the Agricultural Credit Department of RBI in December, 1972. Date Committee gave the following reasons for the over-dues: (i) Wrong loan policies. (ii) Improper loan-disbursement. (iii) Indifferent ness of Bank Officials for recovery of loans. (iv) Insufficient Supervisions on loans and absence of appropriate management. (v) Not to follow the discipline by the banks in financial i matters. The committee submitted its report in the year 1974. Date Committee has suggested the following remedies to minimize the problems of over-dues [expect for those which are due to the natural causes!:

100 (i) Loan policy should be sound one. (ii) There should be provision of punishment for the will&l defaulters. (iii) No one should be allowed to delay in repayment without any proper reason. (iv) Bank Management should create the atmosphere which helps the repayment of loans on time. (v) Loans should be given on time and at only the necessary amount.

11. Committee om the Probiems of Urban B^aks m Maharashtra [Joiglekar Committee]. 1974; The Government of Maharashtra appointed a ‘committee on the probiems of Urban Banks in Maharashtra’ under chairmanship of Mr. V.M. Joglekar in December, 1974. The committee submitted its report in 1976, The committee has praised the Urban Banks in the following words: “In Maharashtra the working of Urban Banks is very much satisfactory. The number of urban banks is increasing day by day in the past some years and its credit go to the selfless and hard working social workers. The number of members is increasing. It shows participation of people in this movement. The same thing is about deposits. The deposits collected from the non-members are more than the deposits from members. It is an evidence of the fact that the urban co-operatives banks have been qualified to the trust of the depositors in urban and semi-urban areas.” The committee studied various obstacles coming in the way of the progress of the urban co-operative banks. The committee made following suggestions:

101 (i) The Audit fee of the Urban Co-operative Banks should be depending upon the working capital and not on the working load of the bank. (ii) The restrictions on the UCBs to collect deposits from Trustees, Municipalities and other cantonment boards shoutd be removed..

12. Commlttefe oa Urban Co-operatlve Banks [Madhavdas . Committee^ 1977; After 1960, the Urban Co-operative Banks were rapidly increasing. However, many obstacles regarding their working and policies were aroused. Therefore, to survey the Urban Co-operative Banks and to suggest remedies to improve their efficiency. Reserve Bank of India appointed this committee in September, 1977 under the chairmanship of Mr. Madhavdas. The committee presented its report in April 1979. The main recommendations .made by the conamittee were as follows: (i) . The efficient Urban Co-operative Credit Societies should be converted into the Urban Co-operative Banks. (ii) The salaried servants co-operative credit societies and the urban co-operative credit societies should not accept deposits from the non-members. (iii) To encourage the establishment of the Urban Co­ operative Banks at small towns like Tahsil places. (iv) The face value per share should be Rs. 25/-. (v) These banks should give training to their employees. (vi) The loans should be given for production fonction and to small entrepreneurs only.

102 13. Committee on Customer Serviee la B^nks^ 1991; The RBI appointed fifteen members committee on customer service in banks under the chairmanship of Mr. M.N. Goiporia. Bank working time, customer guidance, problems in cash transactions, provision of nomination for accounts, rate of interest on deposits, pass book, vouchers, safe-deposit lockers, drafts, bill for collection, cheques and their problems, loan section, employee training, role of employees and officer organization, Technique of work and its modernization, examination of customer services etc. have been taken for study. Goiporia Committee presented its report in December, 1991. The following are important recommendations made by the committee, (i) Banks working residential areas should keep open their branches on Sunday also. (ii) The public holidays given to the banks should be limited to 15 days in all over the country. (iii) Tables showing the duration of time necessary for various work should be shown in the notice board and the . employees keep the accurate time for the work. (iv) Develop proper methods in relation to customer guidance. (v) Machine should be used to count notes where the work load is high. New method of making note bundles should be followed. (vi) Each Deposit account must be nominated. Nomination should be recorded at time of filling the application form to open the account. (vii) Separate branches should be opened for lockers service. Reserve Bank, should give permission to make the lockers available in Extension counters also.

103 (viii) Bank should make sufficient arrangement to give the Demand Drafts to the customers in less time. (ix) Employee training is very much essential in respect of customer service.

14. Committee on Licensing of New Urban Co-operative Banks [Marathe CommitteeK 1991 ; The ‘Reserve Bank of India’ appointed a ten members ‘Committee on Licensing of New Urban Co-operative Banks’ under the chairmanship of Mr. S.S. Marathe in September, 1991. The committee submitted its report on 18^'' May, 1992. Some of the important recommendations are as following : (i) New employees co-operative banks will not be permitted, but existing banks can do its functioning. (ii) New. Urban Co-operative banks will be permitted to establish in under developed areas. (iii) The area of operation for the scheduled urban co­ operative banks will be a whole state. RBI permission will continue to be required for the expansion of area of the present operation. (iv) Regarding the area of operation there will not be any difference such as urban and rural area. (v) The prudential and regulatory norms applicable to commercial banks are also made applicable to UCBs. (vi) The committee has given the recommendations in detail regarding the extension counters, Migration of office, new branch expansion, etc.

104 IS, H!s[h Power Committee ob Urbaa Co-operative Banks fShrl. K. Madhav^ Rao CommitteeL 1999 ; The High Power committee on ‘UCB was appointed by RBI in May 1999 under the chairmanship of Shri. K. Madhaava Rao. The important recommendations made by the committee are as follows: (i) Licensing Policy of New UCB: - The Regulator' should prescribe the twin criteria for entry i.e. strong set up capital and requisites norms for promoter’s eligibility. (ii) Corporate Governance; - At least two Directors having Accountancy and Banking Knowledge or relevant professional background should be electing on the Board ofUCBs. (iii) Branch Licensing Policy: - The Reserve Bank should extend to the UCBs the same freedom and discipline as is applicable to commercial banks in opening branches. (iv) Extension of Area operation: - New UCBs can extend their area of operation to the entire district of their registration and adjoining districts. (v) Policy on Unlicensed Banks :- Under the provisions of section 5 of B. R. Act, a primary credit society with paid up capital and reserves of Rupees one lakh and with the main objective of carrying on banking business, automatically secures status of an urban bank. (vi) Policy on weak /sick Banks: - Separate objective criteria based on CRAR, net NPAs and history of losses have been recommended for identification of weak and sick banks.

105 4.5 Review of Research Articles 1. Dr. Nair Ramp'rakassh N. in Ms Article 'Towards More Prudent Banking in Urban Co-operative Banks in Maharashtra’, writes that ‘The Urban Co-operative Banks by its vast numbers and membership along with its local appeal have become an important sector in the area of Banking and Finance. The Reserve Bank of India’s inspection and periodical Government audit of UCBs did not show any worth regarding change in the non-professional- attitude of the Board of Directors. The RBI made an attempt by introducing a code of conduct to the Board of Directors and also expected that they will follow the same. Government has attempted to balance between Authority - Responsibility - Accountability in the co-operative sector with no exception to UCB. Management with more rational, professional and financial discipline which can be conduct* credibility and safe management of public money are expected to arrive in the management of UCBs.”

2. Mr. Joshi Rajiv in his article ‘Qualities of the Directors in Salary Earners Co-operative Bank’^ writes that; “Directors should have deep study regarding co-operative and banking fields. He/She should be always in position to acquire recent knowledge. He/She should have clear ideas about new schemes. He/She should work rationally and as a trustee. He/She should try to bring co-ordination between Management and bank staff. He/She should observe discipline in respect of confidential matters. He/She should try for business maximization. He/She should keep in mind ‘Members interest’ while acting on behalf of the bank with third party.”

106 Mr. Joshi gives stress on qualities of the ‘Director in SECB’ because Director is a responsible person of the bank. And responsibility relates to commitment. The nature of the Director should be comprehensive.

3. Dr. Shaligram A.Y. in his article ‘Bank Management - Economics of Finance Administration and Personnel writes that - “There are two types of Management in Financial institutions, financial and personnel. The financial management shows the quantitative development while personnel management shows qualitative development. Personnel management is very much important for the financial institutions. Banks are not exception to this. If human resources are properly managed it may prove as dynamic motive for running an organization at its optimum level. Human beings are responsive, they think, feel and act.” It is thus; evident that human being is the most significant factor playing a pivotal role in the areas of productivity and quality. The qualitative development of the bank is very much essential. In the present context, the recognition of human aspects in the organization and its confinued development has assumed higher priority.

4. Dr. Bhosale Sanjay Kumar in his article ‘The Banks will be successful, if the Employees are trained"^ v/rites that: “Employee of the co-operative bank is the basic element of the bank. The trained and efficient staff, selfless directors is essential for the progress of the bank. In the co-operative banking business, trained employee is the need of fime. Training is a widely accepted practice. Training makes employees more effective and productive.

107 Training is an organized procedure by which employees learn knowledge and acquire the skills they need for a definite purpose.”

5. Mr. Pawar R.Y. in his article, The Importance of Training in Bank Development’ States that; “In every co-operative institution, employee training has more significance. In recent position, there is a lack of well-qualified and trained employees in the co-operative banks, while doing the work of loan supply, loan recovery and internal checking, the trained employees work more efficiently than that of untrained employees. At first, the bank management should identify which training is essential to its employees, then introduce the scheme of training, to motivate and create mind attitude of the employees for training programmes arranged by the outside agencies. And■a trained employee makes his real sense contribution in bank development.”

6. Mr. Rao Bhaskara G.S, in his article ‘Human Resources Management: An Integrated Approach to Employee Dynamics’^ writes that: “The ‘man’ or the ‘human being’, posses a high developed mind, a keen and perceptive intelligence. In the words ‘Human Resources’, the ‘Resources’ refers to physical, mental’ intelligent and spiritual inherent in a man. The performance of an individual is determined by two factors, i.e. ability and willingness. If organizations manage their human assets properly, the same would enhance the dignity of the employees by fulfilling their social needs. If the management of organizations provides a healthy and congenial work environment, it will pave way for promotion of well-knit team among the work force. If the individuals are properly motivated and inspired.

108 1. Mr. Sengupta Shombit in his article ‘Bonding Emotionally’^ writes that, “The CEO is responsible for weaving strony emotional bonding in different activity sectors to achieve the organization’s objectives and goals through different competencies. It is important to focus on understanding your employees ‘muiti-dimensional backgroun4’ because such factors influence their mind space for holistic thinking and their productivity at work. The organization will flourish when one inspires employees to use the intrinsic knowledge they posses, and make them more competent professional than you are. One is no longer in the feudal mode, and need to be democratic. Good employees will stay for the long haul if their career challenges are valued and met. If, not, they will switch to another bank or company. In today’s world, a top-down vision and mission like a template does not carry any relevance. Bottom - up has more relevance because the more you go the bottom of your organizations the more you fmd the real picture of your organization and your market.”

8. ivfr. Patkar Damodar in his article, 'An Introduction of Salary Earners Banks’*, writes that, “Banks which are started by the employees for mutual help known as ‘Salary-Eamers Banks’. These banks are financially sound from their early stage. These banks are successful in keeping NPAs under control. These banks are providing loans to the members at the time of their financial difficulties. The SECBs provide better service with employee welfare at priority and ultimately assisting to the dependents of the employees. These banks are offering different facilities, concessions and financial aid [on the humanity ground] to their members.”

109 9. Mr. Kalokhe Ulhas expresses his opinions about the customer services in the UCBs, in his article ‘Urban Co-operative Banks and Customer Service’/ as follows: “The bank employees should know all the details about their work. The level of customer service depends on the knowledge and work style of the bank employees. The expectations of the customers from the banks may be as follows: (i) Their work should be completed in minimum time. (ii) They should get necessaiy information in minimum time. (iii) The working hours of the bank should be suitable to them. (iv) The bank officer or employee should have personal attention on them. (v) The employee should talk affectionately with them. The customer services in UCBs comparatively better because local employees are recruited who are well familiar to the customers. Now circumstances are changing as the business. The well qualified staff should be selected. They should be trained. The banks should use the means of modem information and technology, new systems, such as All time Banking [ATB]^ Automatic Teller Machine [ATM], Home Banking’ Tele banking etc. for survive in the future competition."

10 Mr. Tansale M.M. in his articles ‘Responsibilities and Expectations from Salaiy Earners Banks and Co-operative Credit Societies’^®, writes that, “Maharashtra leads in co-operative banking movement ■ in India. Majority of the banks are working properly and following strictly directives of the RBI, NABARD and the Registrar of Co­ operative Societies. Salary earners get fixed salary. So no chances of sudden rise in

110 their income. Hence, income of salary earners being inadequate to satisfy their needs of capital nature. However, SECBs and co­ operative credit societies are lending money to members at reasonable. rate of interest and protect them from clutches of moneylenders. It is expected that SECBs should bring economic stability in the life of their members. Theses banks should follow best practices of banking. SECBs and co-operative credit societies have to be believed to be the avenues of micro finance and that they should adhere to prudential norms and set themselves right so that they became vehicles that could bridge the gap. SECBs and Co-operative Credit Societies are contributing [on the basis of their turnover/working capital] annually to 'Education Fund’ of ‘State Federal Society’. It is expected from SECBs and ■ Co-operative Societies, the ‘State Federal Society’ should utilize 'Education Fund’ for ‘Co-operative Training Programmes’ strictly. And it is the responsibility of the ‘SECBs and Co-operative Credit Societies to arrange ‘Lectures on Co-operative’ collectively. Credit Societies to arrange bring sound awareness of ‘Co-operative’ among the. members and employees.”

11. Mr. Hota M.R. in his paper, ‘Banking in the New Millennium’ wrote that. ‘The Banking system accounts for 80 per cent of the fimds flowing through the ‘Indian Financial System’. From class banking to mass banking, from wholesale banking to retail banking and from macro banking to micro banking the Indian Financial System has transformed itself into a potent tool of socio-economic development of the teeming millions. Technological up gradation, product range quality and price, marketing strategy and quality of service would give a bank the

111 competitive edge in the new environment. Pretty customer friendly and pleasant ambience inside the branch premises would be the order of the day. Training, up gradation of skills of staff and change in -their attitudes, behavior and conduct would be very necessary for rendering efficient and courteous service to customers in a computerized environment and to conform to customer expectations. However, the prospects appear to be very bright, rosy and beneficial to the customer, who is going to be centre of attraction and in the sharp focus of all banks.” Thus, the customer who is in the focus of banks in all the irmovations and developments that are intended to provide world- class service to him.

12. Mr. Deshpande R.S. in his article ‘Customer Service in Banks’'^, states that Banking is service industry. Banks should change their attitude towards their customers and the bank employees and officer should change their behavior. For this purpose the training and personality development programmes should be arranged. To survive in the competition, the urban co-operative banks have no option expect providing excellent services to the customers.” Mr. Deshpande has given stress on the training and personality development programmes for the bank employees for the improvement in their attitude and behavior which is essential for the customer service and ultimately for the progress of the bank.

13. Dr. Rangrajan C. in his article ‘Banks and Profitability’ writes that: “Improving profitability of banks has been area of great concern both to RBI and the Government of India. The performance of financial institutions is judge by its allocational and operational efficiency. Allocational efficiency refers to efficient allocation of funds by an institution among competing demands. Operational efficiency refers to the difference between the rates at which funds are raised and deployed. Gains occurring to the banks because of the measures may be called an environmental profit because they occur because of external factors and not due to improved internal efficiency of banks. He observed that, banks should improve their profitability through increased operational efficiency, viz. improving the quality of loan assets, which, in turn, require better credit appraisal and better monitoring.”

14. Mr. Ratnannavar M.B. in his article ‘Old is Gold’'*^, writes that: “Employees Co-operative Bank is a source of financial strength for employees to meet their financial needs. Employees’ co-operative banks have less non-performing assets compared to nationalize or commercial banks. Debt recovery position of such banks being excellent because recovery of loan is being made from salary. These banks have played a very significant role in the mobilization of deposits from their members. All such banks run on a sound financial footing.”

15. Mr. Deshpande Arvind in his article, ‘An Introduction of Profit’ writes that; “Profitability is expressed as a percentage of profit to working funds. The factors which influence profitability are - (i) Yield of Funds [Credit mis, prise mix]. (ii) Cost of Funds [Deposit mix, borrowing mis]. (iii) Operating cost[Wage and staff policy, other exp.].

113 (iv) Service charges and volume of non fond based business. (v) ControLof non-performing assets md bad-debts. (vi) Minimizing non-eaming assets. Planning for Profitability (i) Reduce the cost of funds. (ii) Hold stricter control on certain working expenses. (iii) Increase the overall earning rate on fonds. (iv) Increase the earning through quick recycling of resources by improving recovery rate. (v) Reduce the requirement of provisioning in the Ban’s Balance- Sheet for bad and doubtfol debts by improving recovery performances. (vi) Prevent leakage of income. (vii) Improve other income.”

16. Mr. Subramanian K.G. in his article, ‘Role of Branches in Asset- Liability Management System’ wrote that: “Under the pretext of globalization, free-market economy and universal banking share ‘Survival of the fittest’ has become the order of the day, ‘ profit’ has emerged as the key factor to assess the viability of a ban/branch. Thus, it has become imperative for a branch to move away fi:om ‘partial asset management’ and ‘partial liability management’ towards an ‘integrated balance sheet management’. Asset Liability Management [ALM] is a profit planning tool which manages interest rate volatility. Integrated approach to branch Financial Management requires simultaneous decision about Asset Liability Mix and Volume. Further, Asset Liability Management in a branch requires through knowledge about the behavioral pattern of their customers and also an understanding of

114 the market area in which the branch operates. This concept of ‘behavioral pattern' has been given due importance similar to that of ‘residual maturity’ in the RBFs final guidelines on Asset Liability Management.” Thus, all the bfanches should practice this Asset Liability Management Scientific profit planning tool to enhance their profitability and contribute considerable to improve the banking business.

17. Dr. Siddhanti S.A. in his article, 'Financial Indicators to Evaluate Performances of Urban Co-operative Banks’’^, states that: “It is, these days, customary to use ‘CAMELS’ rating ratios, financial tools and financial indicators to evaluate performance of UCBs.

CAMELS Rating; C = Capital Adequacy A = Asset Quality M ~ Management Efficiency E = Earnings' L = L iq u id ity S = System and procedures.

The following are financial tools: (i) Cost of Funds. ■ • (ii) Yield on Assets. (iii) Gross Margin [Spread]. (iv) Net Margin. (v) Burden. (vi) Cost of Management.

115 (vii) Risk Cost. (viii) Miscellaneous income. (ix) Break even point. Financial indicators give definite ideas for further planning. Various ratios are calculated and then interpretation is necessary for each ratio ”

Miss. Daxini Susmita in her article, ‘Challenges before the Co-operative Banks’ writes that, “RBI has revised the entry norms for co-operative banks. Challenges before co-operative banks have multiplied due to * Inadequate entry norms. * Rising Professional Management. * Politicizing of Management, * Absence of proper supervision. * Lack of formal internal training systems. * Lack of internal manual of instructions. * Slow expertise development. Owing to all titiese, UCBs are yet to develop strategic planning, risk management and customer relationship management.”

19. Mr. Shinde Balasaheb Shrirang in his article, ‘Problems of the Salary Earners Co-operative Banks’ write that; “Salary Earners Co-operative Banks are more efficient than other co-operative banks. The Non­ performing Assets [NPAs] of these banks being the lowest among all the co-operative banks. Due to free economy, SECBs have got autonomy about their own decisions. Now these banks have various problems-viz. : decreasing membership, absence of NRI Accounts, lack of Current Accounts, lack of expert Directors etc.”

116 20. Mr. Pujari B.B. in his article, ‘Independent Apex Bank’^*’, wrote that: “In the Maharashtra State, co-operative movement has been playing an important role for the progress of the common people. Now the UCBs are highly hailed, as one of the important constitutes of multi agency banking system. Salary Earners are organizing separate banks and also the salary earners banks have their distinct methods for collections of deposits and recover}' of loans through pay rolls. But at the Maharashtra State level, we are demanding a separate apex bank for UCBs. In the Maharashtra State, no apex bank is formed for UCBs. Now UCBs are fighting for their survival. No apex bank at state level created some problems in relation to UCBs. Some UCBs have idle cash on the other hand some UCBs have no more funds. With the help of an independent apex bank for UCBs, it is possible to make balancing in funds at the state level.”

21. Mr. Bawa [Giri] Rajendra in his article, ‘Co-operative Movement : Success - Failures’^’, writes that : “There are four important factors of the Co-operative Banks namely - (i) Members, (ii) Board of Directors, (iii) Bank Employees, (iv) Depositors.

The members of co-operative banks are not serious about their rights. They are not thinking seriously about the bank’s functioning. Board plays dominating role in every co-operative bank. Many Directors have no any professional touch. Therefore, quality of work is hampered. Co­ operative banks are always lagging in the field of training. The facilities provided by these banks to their employees are very less as compared to facilities provided by their competitors. There is always a fear of losing a trained employee if he/she gets better job. Moreover, the work load is very much as compared to the package, they offer. Therefore, the

117 employees are demoralized. There is no any provision in the Co­ operative Act, in relation to the representation of the depositors.”

22. Mrs. Andhare Rachana. in her article, ‘Challenges before Co-operative Banks in Maharashtra’^^, states that; ‘‘the co-operative banks are facing many challenges, the most important among them are as follow's: * Lack of treasury of their own. * Dual control. * Tedious inspection. * Technology cost and replacement cost on account of obsolescence. * Competition amongst banks. * Faulty and erratic credit management. * The State Government itself does not recognize these banks as the guarantor. * Application of CRAR. * Specialized services not affordable. * Compulsory investment in Government securities. * Incompetent staff. * Lack of training facilities. * No culture of wide marketing. Mrs. Andhare has stated most important challenges/problems of the co­ operative banks in Maharashtra. Certain remedies are essential for solving such challenges. The remedies would like to that ‘co-operative banks’ are the BANK FOR MASSES; they are root - level institutions. It is worth while to say at this point of time that co-operative banks in future will prove as the catalyst in the economic progress of our nation.

23. Mr. Adsul S.B. in his article, Importance of Computer in Banks Progress’^^, states that; “The computer technology is changing the

118 banking scene. UCBs need to harness technology more just to survive in an increasing competitive financial market place. Computerization is the best way of doing. It needs some level of computer awareness and data discipline in the bank. In the UCBs, application of computer system is the need of time. It improves quality of the service. In banks, calculation is a tedious job, while doing various transactions. Especially interest calculation takes too much time and it creates strain on the mind of the employee. However, manual calculation work will become smooth due to use of computers in the banks. The importance of computers in the UCBs is being regarded as a solution to large number of problems. The computer system creates many advantages like save time, money and energy of customers, minimizes paper work, speedy and accurate service etc.”

19 References L L Dr. Nair Ramprakashan N.: Towards more prudent banking in urban Co-operative banks in Maharashtra; Souvenir - XIII Maharashtra State Commerce Conference, held at Akola 24*^ and 25* February. 2002; Pp. Ill 7 & '8. 2. Mr. JosM Rajiv; Qualities of the directors in Salary- earners Co­ operative bank; Sahakar Sugandh [annual]; published by Sahakar Bharati,Mumbai; Vol. XII; dated 15* Marcfli, 2003; Pp. 5 & 6. 3. Dr. Shaligram A. Y. Bank Management- Economics of Financial Administration and Personnel; Sahakari Maharashtra; Pune; March, 2001; P. 7. 4. Dr. Bhosale Sanjaykumar;- The Bank will be successM if the Employees are Trained; Daily Tarun Bharat [Marathi]; Belgaum; dated 2*^^* August 2000. 5. Mr. Pawar R. Y. ; The importance of training in Bank Development; Ammt Mahotsav Smamika of the Government Servent B afiks Dhule; 1996; P. 83. 6. Mr. Rao Bhaskara G. S.; Human Resource Management: An Integrated Approach to Employee Dunamics; Central Bank of India; Economic - Bulletin; June, 2000; P. 19. 7. Mr. Sengupta Shombit; Bonding Emotionally; Business India; Publisher Advani Ashok; Mumbai No. 662; July 21-August 3, 2003; R 101. 8. Mr. Patkar Damodhar; An introduction of Salalry Earners Co­ operative Banks; Sahakar Sugandh [ Annual]; Published by Sahakar Bharti; Mumbai; Vol. XII dated 15* March, 2003; P. 4

120 9. Mr. Kalokhe Ulhas; Urban Co-operative banks & customer service; Daily Sakai [Marathi]; Pune; dated 28* December, 2000. 10.Mr, Tanksale M. M,; Responsibility and expectations from salary earners bank & co-operative credit societies; Amrat Mahotsav Smamika of the Government Servants Banli, Kolhapur; 1993; P. 65. 11.Mr. Hota M. R.; Banking in the new Millennium; Paper Presented in the National Seminar on Nationalization of Banks- In retrospect Hosted by Inverts Institution of Management Studies; Bareilly; 19- 20 July, 2000. - 12.Mr. Deshpande R. S.; Customer Service in Banks; Management Development Programme Documentation; Organised by VAMNICOM Pune; January 1993; P. 7. 13.Dr. Rangrajan C.; Banks and Profitability; RBI Bulletin; February. 1991; P. 12. 14.Mr. Ratnannaver M. B.; Old is Gold; Banking Frontiers; edited by Agrawal Manoj; Global Strategies and Services; Navi - Mumbai; Vol. 2" No. 6; September, 2003; P. 8 15.Mr. Deshpande Arvind; An introduction of profit; Sahakar Sugandh [ Annual] ; Published by Sahakar Bharti; Mumbai; Vol. XII dated 15* March, 2003; P. 8 . 16.Mr. Subramanian K. G.; Role of Branches in Asset - Liability Management System; Central Bank of India - Economic Bulletin; June- 1999; P. 13. 17.Dr. Siddhanti S. A.; Financial Indicators to Evaluate Performance of Urban Co-operative Banks; Programme Documentation; Organized by Udaybhansinghji Regional Institute of Co-operative Management, Gandhinagar [Gujarat]; dated 25* and 26* February, 2002; P. 39.

121 18.Miss Daxini Susmita; Challenges Before the Co-operative banks; Souvenier - XIII Maharashtra State Commerce Conference, held at Akola 24* and 25* February 2002; Pp. Ill - 6. 19.Mr. SMnde Balasaheb Shrirang ; Problems of the Salary Earners Co-Operatiye Banks; Diamond Jubilee Smamika of the Rayat Sevak Bank Satara; dated 30* April, 2001; P. 45. 20.Mr. Pujari B. B.; Independent Apex Bank; Amrut Mahostav Smamika of the Government Servants Bank, Kolhapur; 1993; P. 34. 21.Mr. Bawa [ Giri] Rajendra; Co-operative movement - success - Failures; Amrut Mahostav Smamika of the Govermment Servants Bank,Dhule; 1996; P. 101. 22.Mrs. Andhare Rachana; Challenges Before Co-operative Banks in Maharashtra; Souvenier - XIII Maharashtra State Commerce Conference, held at Akola 24* and 25* Febmary 2002; Pp. Ill - 10 and IL 23 .Mr. Adsul S. B.; Importance of Computer in Banks Progress; Ammt Mahostav Smamika of the Government Servants Bank, Kolhapur; 1993; P. 63.

122 CH APTER-V ORGAMZATIONAL STRUCTURE ANB MANAGEMENT OF UCBs

5,1 Organizational Structure 5.2 Promoters 5.3 Members 5.4 Board of Directors 5.5 Office Bearers

123 Chapter V Organizational Stractnre and Management of UCBs

Or^aiikatloiial striictMre; . ® Organisation: Generally, the organisation is the framework of Plans and policies laid down by the management executed through administration. It also refers to a group of persons who have come together to achieve some common objectives. The organizational structure implies allocation of duties and responsibilities, distribution of authority and coordinating the various works departments. It is also called as organizational set up. Organizational structure is an official structure of activities, roles and authorities, which is deliberately planned and executed by the management for achieving organizational goals. In the organizational structure of urban co-operative banks following factors are involved. 1. Promoters. 2. The members 3. Bo^d of Directors 4. Office Bearers

The organizational structure of UCBs can be shown with the help of following diagram;

124 Chart No. 5.1

The Orgaiilzatloiia! Stractiire of UCBs ^

Promoters

The members

Board of Directors I i Office Bearers 5.2 Promoters; This is an important factor in the organizational structure of the urban co- operative banks. Promoter is a person who conceives the idea of starting .the organisation and .brings the same into existence. Promoter takes help of other persons for the formation of the organisation. The role of the promoter in the formation of urban co-operative banks is very important. Promoter conceives the idea of starting urban co-operative bank. Then promoter discusses the idea with his colleagues and if it is feasible then they start working for the same. First of all promoter gets application form from the concern registrar of co-operative societies. The group of promoters prepares the byelaws and the project report for the bank. Then the probable members contribute the initial capital. After that, the promoter submits application form for the registration to the registrar. This application is enclosed with the four copies of the byelaws, bank balance certificate, project report, permission fi-om the Reserve Bank of India, no objection certificate from existing urban co-operative banks and

125 other important documents. Then registrar does scrutiny of the appHcation and if he is satisfied with the application then he registers the bank and then gives registration number to the concern bank. Then he gives registration certificate with his office seal and signature to the pronioter. After that promoter calls first general meeting of the members in which he presents statutory report which is approved by the members, temporary board of directors is elected and future plans of the banks are discussed in this meeting and with this the role of promoter ends.

5.3 The Members of the Urban Co-operative Bank; The member is the person who holds shares of the co-operative society. According to the Maharashtra State Co-operative Societies Act 1960 “The member is the person whose name is included in the application form for the registration or who is accepted as a member after the registration.” The group of the members, which is called as the general body, is very important for the urban co-operative bank. This factor is the base of all co-operative organisations. • Types of the members: Following types of the members are in existence in the urban co-operative banks.’ 1. General Members: They are also called as regular members. Those persons who purchase the shares of the urban co-operative Bank are called general members. These members are the real owners of the bank. They have all rights of the bank. The number of these members is more in all urban cooperative banks.

2. Associate/ Joint Members: In some cases, there are joint members. When two or more persons hold the shares jointly then they are called associate members. According to the Coop. Act “the person whose name is at number two in the share certificate is called joint member. The 126 person whose name is at first is called General member and he gets all the rights from the bank.

3. Nominal members: The persons who are admitted in the bank as the nominal members are called Nominal members. These members do not purchase the shares of the bank but pay entrance fees only. They do not have any right in the bank. In Urban Co-operative banks this type of members is also more. As the non members of the bank can not avail the advantages of the banks, they become the nominal members. For example, for taking Gold mortgage loan the person should be the member and if not, they become the nominal member.

• Qualifications of Membership; The membership of the urban co-operative banks is given to the following persons and organizations: 1. Any major person. (But that person should not be mad or bankrupt) • 2. Any organization registered under any Indian act. 3. Charitable trust. 4. Any other co-operative society. 5. Local governments i.e. Zilha Parishad, Panchayat samities etc. 6. State government and central government.

• Conditions for membership; All the members of the urban co-operative banks fulfill the following conditions for the membership. 1. Major person: All the members of these banks are major persons and they are not mad or bankrupt.

127 2. Resident of the working area: All the members of these banks live within the area of operation of the concern bank. 3. Written Application: The members of urban co-operative banks have applied in writing for membership and then the directors give the membership to the applicants. 4. Purchase of shares: Maximum members of these banks are general members and so they purchased the shares of the co-operative banks. 5. Entrance fees: At the time of getting membership, every member has paid entrance fees for the membership. This amount is very nominal.

Rights of Members; As per Co-operative Act, the members are real owners of the banks and as owners, they get following rights. These rights are individual as well as collective, 1. To get share certificate. 2. To get notice of the members meetings. 3. To attend the meetings of members. 4. To get dividend 5. To transfer the shares. 5. To nominate the legal nominee. 6. To take loans and to keep deposits. 7. To elect the board of directors and to be elected as the directors. 8. To amend the byelaws. 9. To call special general meeting. 1 O.To terminate the members as well as directors.

Responsibilities of members: All the members enjoy the above mentioned rights, but the same time they have to complete following responsibilities,

128 1. To purchase the shares of society in the limit i.e. One fifth of paid up capital or Rs. 50000/- whichever is less. 2. To attend all the meetings of bank actively. 3. To pay installment of loans regularly. 4. Do not start any competitive business. 5. To nominate the legal nominee.

® Acqsitsition of membership; All members of these banks have followed one of the following methods for getting membership, 1. Signing the registration form: For the registration of co-operative societies minimum 10 persons are required. All such people’s names and signatures are.there in the form of registration and after the registration all such persons get membership directly., 2. Application form for Membership: After the registration of these banks people get membership, but for that they have to apply separately. Maximum number of members of these banks has got membership by this method. 3. Transmission of shares: Some times.the share of the deceased members transferred to his legal nominees. This is known as transmission of shares and by this nominee becomes the member.

® TermtfflatioK from Membership; Due to the following reasons, the membership of the urban co-operative banks can be terminated, 1. Death of the member: Due to the death of the member the membership of the bank is automatically terminated. 2. Transfer of the shares: If member transfers all his shares to other member then the membership is terminated.

129 3. Resignation from membership; As the membership of the co­ operative banks is voluntary, the members can resign from the membership any time, so when he resigns then his membership is terminated.

5.4 Board of Directors (Managing Committee) This is the third important factor in the organizational structure of the urban co-operative banks. The directors are the representatives of the members of the co-operative society. “The group of the elected representatives of the members is known as board of directors.” The members elect the directors. The board of directors looks after the working of the society. The members of the urban co-operative banks elect the directors: Due to the following reasons, members elect the board of directors. 1. The number of the members is more: The number of the members of the urban co-operative banks is more so that they cannot take part in the routine work of the banks. 2. They are spread over the area of operation: The members of urban co­ operative banks live within the area of operation of the bank. They are spread over the area and so it is not possible to them to come to the bank regularly. 3. They have their own business: Every member of the bank is having his own business or service so they do not have spare time to work for the society. 4. They do not have knowledge of Management: Generally maximum members of the urban co-operative banks do not have knowledge of the management and some of them are not interested for the same.

130 FEBcttoiis of the directors: The directors are very important for the banks as they perform following functions L To call meetings of the members. 2. To give membership to the applicants 3. To sanction the loans to the members 4. To take loan for the bank 5o Td purchase or sell the property of the bank • 6. To sanction the transfer of shares of members 7. To fill up the vacant post of the director 8. To appoint the employees for the bank 9. To fix the policies of employees 10.To elect the chairperson for the bank

Cl

® ■ ResBOKsibiltties of Directors: The directors have following responsibilities. 1. To safeguard the interest of members. 2. Do not start any type of competitive business. 3. To take active part in the working of the bank 4. To use the property of the bank properly.

5.5 Office Bearers of the Society; ' . Any person appointed or elected on any post of the co-operative society is called office bearer. President and Vice president of the banks are elected office bearers where as managing director. Manager, Accountant, Secretary, etc are appointed office bearers. Some of them are as follows.

131 Chart No. 5.2 Classiflcatid!! of Office Bearers

Elected ApBoiated President Manager Vice President Assistant Managers Accountants Legal Advisors Recovery Officers

[. Presideiit / Chairman; The chief of the board of directors is called President. One of the directors is elected as the president by the board and he is head of the society. He is the top authority in the banks. Rights and fimctions of the President: 1. To control the day to day working of the society 2. To give casting vote 3. To sign all the documents and cheques ■ 4. To represent the society 5. To control the meetings of the society 6. To call meetings of the members and directors 7. To receive the allowances Responsibiiities of President; President of the bank has following responsibilities. 1. To control the working of the society properly 2. To follow the bye laws and coop act 3. To call meetings of directors and members in time 4. To keep the record properly 5. Do not keep cash more than the limit 6. To take efforts to develop the society

132 II. Vke Presideiit; One more director is elected as the Vice-President for the urban cooperative banks. He enjoys all the rights and performs duties in the absence of President.

HI. Manager or director; The Manager or Managing director or Chief Executive Officer in the urban co-operative bank is appointed by the directors to look after the working of the bank. This person knows every detail of the bank. He is an important officer.

® FimctiQES of Manager / Managifflg Director/ Chief Executive Officer 1. Correspondence; This is the important function of the manager. He has to look after the inward and outward correspondence of the bank. 2. Functions about Meetings: He has to send notices to the members and directors. He has to do the arrangement of meeting and write the minutes of the same. He has to prepare the agenda also. 3. Controlliiig the roiitine work: He looks after the day-to-day working of the bank and supervises the work of other employees. 4. Public Relation: As an important officer, he maintains good relations with public. For the development of the bank, this ftmction of the manager is very important.

® Other office bearers; Other than, above mentioned office bearers there are deputy managers, assistant managers, senior officers, junior officers and clerical staff.

133 Reference; 1. The Maharashtra Co-operative Societies Act 1960, section 2 (A), Edition, p, 3 2. Sahakar, Dr. Barhate G.H. Dr. Bhor J.R. and others, Sheth Prakashan ■» Kendra, 2007, p 3

1 3 4 , CHAPTER-VI PROFILE OF AHMEDNAGAR DISTRICT ANB SELECTED URBAN CO-OPERATIVE BANKS

6.1. Historical Aspects 6.2 Geographical aspects 6.3 Demographical Aspects 6.4 Socio-economic aspects 6.5 Urban Co-operative Banks in Ahmednagar district 6.6 Profile of Urban Co-operative Banks in Ahmednagar district

135 Chapter VI Profile of Ahmednagar district and Urban CO“Operative Banks in Ahmednagar District

6.1 Historical Aspects: The Ahmednagar town has been famous since medieval times. It was the capital of the Nizamshahi, kingdom of Ahmednagar and was founded in 1494 by Malik Ahmed, the founder of the Nizamshahi Dynasty of Ahmednagar. The town was named by after his name. Ahmednagar was first formed as district in 1818 soon after the overthrow of the Peshwa. In 1830, the district included the sub-collectorate of Sholapur within it. The district of Sholapur was formed in 1838 but abolished in 1864 when a part of its area was reverted to Ahmednagar. In 1837-38, the sub-divisions of Sinnar, Chandor, Dindori, Nasik, Igatpuri and Peint were made into Nasik sub collectorate under the administration of the Collector of Ahmednagar. This sub-collectorate, however, was abolished in 1856 and the area was reverted to Ahmednagar. In 1869, two districts Nasik and Sholapur were formed. In 1891, the district of Ahmednagar had the following sub-divisions, namely. Jamkhed, Newasa, Shrogonda, Shevgaon, Sangamner, Ahmednagar, Kopargaon, Akola, Karjat, Pamer and Rahuri. Pathardi peta was newly formed in 1930 and rest of the Jamkhed taluka was renamed as Jamkhed mahal. Similarly the Karjat taluka was down graded as peta in the decade 1931-41. The Shrirampur taluka w'as formed in 1945 and the Pathardi and Karjat petas were upgraded into full-fledged talukas in the decade 1941-1951. Twenty-one enclave villages of Bid district were transferred in 1950 to this district and at same time 26 villages of

136 Ahmednagar district were transferred to Bid district and one village to Aurangabad to readjust the boundaries to bring about contiguity. In 1956, the district became a part of bilingual Bombay state and in 1960 became a part of Maharashtra when the linguistic state came into existence. The Rahata taluka was newly formed in 2001. At present, there are fourteen talukas in the district.

6.2 Geographical aspects; The Ahmednagar district lying between 18.20’ and 19.59’ north latitude and 73.40’ and 75.43’ east longitude, is situated partly in the Upper Ciodavari basin and partK in the Bhinia basin. The district has very irregular, but compact in shape, somewhat resembling a slanting cross with a length of 200 km and a breadth of 210 kms. It is bounded on the north and north-west by the Nasik district, on the south by the Sholapur district, on the south-west by the Pune district, on the west by the Thane district, on the northeast by the Aurangabad district, on the east by the Beed district and to the southeast by the Osmanabad district. It has a total area of 17412 square km., which constitutes 5.66 per cent of the state figures. Ahmednagar district is the largest district in Maharashtra.

137 Map No. 6.1

LOCATION OF AHMEDNAGAR DISTRICT IN INDIA

INDIA MAHARASHTRA

AHMEDNAGAR

138 Map No. 6.2 AHMEPNAGAR DISTRICT ( Taluka wise)

6.3 Demographical Aspects; As per the census of 2001 the population of the district was 40,40,642 out of this rural population was 32,36,945 and urban population was 8,03,697 (19.89 %). The urban population was from the Ahmednagar Municipal Corporation, Ahmednagar Cantonment Board, 8 municipal councils, and 8 notified cities. The increase rate per ten years of urban population is 56.52, whereas for rural population is 14.81. The population as per census of 1951 was 14,11,000, out of which urban population was 2,15,000 and rural population was 11,96,000. As compare with the urban population of 1951, there is an increase of

139 5,88,697 in the census of 2001, there is a rapid growth in the m*ban population. Ahmednagar district has 14 Block committees and 1308 Village panchayats.

^•4 Sodo-economic aspects Ahmednagar district has 14 talukas and 1308 village panchayats with a population of 40,40,642 ( Census of 2001). The literacy rate of the district is 75.3 % and it stands eighteenth in the state. As per 1999-00 index, the gross per capita income according to current prices of the district is Rs. 31,043/- and net Rs. 28,297/- and according to Fixed prices gross per capita income is Rs. 23,991/- and net Rs 21,850/-. The main occupation of the people of the district is the agriculture, 1,326 hectors land is under the cultivation. Generally, sugar cane, cotton, oil seeds and other crops are taken. A cattle rearing is also allied business of farmers, for milk production the district is at first rank in the state. The number of co-operative societies in the district is 9468; out of these 2913 are milk dairies. Industries are also in good numbers. MIDC and Ahmednagar Co­ operative Industrial Estate are having maiiy industries. The number of registered factories is 609 and sugar factories are 19. The socio­ economic aspect of the district is depending upon on these industries. The role of co-operative sugar factories in rural area is very important.

6.5 Urban Co-oBer^tlve Baaks I k AhmediiaEar Distriet The co-operative movement made a humble beginning in the district in 1909 and showed signs of gradual and steady progress until today. Ahmednagar district had made remarkable progress in the field of co­ operation. In fact, a bulk of economic development in this traditionally famine-stricken district is attributable to the growth of co-operative.sugar factories and many other processing industries. Co-operative banking has

140 also played and important role in the development of the district. The Ahmednagar District Central Co-operative Bank Ltd. was started in 1958. This Bank gives credit to the farmers through primary co-operative societies at the village level. The Bhingar Urban Co-operative Bank Ltd. was started in 1909 as credit society and has got banking license in 1987. The Nagar Urban Co-operative Bank Ltd. was also started as credit society in 1910. At present 21 urban co-operative banks are rendering their banking services in and out side the district. Out of 14 talukas Shrirampur, Pathardi, Shevgaon, Karjat and Akole do not have urban co­ operative banks. The details of these banks are as follows.

Map No. 6.3

Ahmednagar District ( Tahsils having UCBs )

141 Table Mo. 6.1 TahslI wise Eiimber of Urban Co-operative Banks m Ahmedaaigar District Sr. No. Taluka Mumber of Urban Co-operative Banks 1 ‘ Newase 01 2 Nagar 07 3 Jainkhed 01 4 Shrigonde 01 5 Sangamner 02 6 Rahuri 02 7 Rahata 01 8 Kopargaon 03 9 Pamer 03 10 Shrirampur Nil 11 Pathardi Nil 12 Karjat Nil 13 Akole Nil ' 14 Shevgaon Nil Total 21

142 6.6 Profile of Urban Co-operative Banks in Ahmednasar

d is tr ic t . Table Ho. 6.2 List of the Urban Co~0p©rat!v© Baaks in Ahmediia^ar distri€t

Sr.No. Name of tlie UCBs Locatloa 1 Bhingar Urban Co-operative Bank Ltd. Bhingar 2 Nagar Urban Co-operative Bank Ltd. Ahmednagar 3 Gautam Co-operative Bank Ltd. Kolpewadi, Tal. Kopargaon 4 Shri. Bhausaheb Thorat Ammtvahini Ghxilewadi, Co-operative Bank Ltd. Sangamner 5 Ashok Co-operative Bank Ltd. Ahmednagar 6 Jamkhed Merchant’s Co-operative Bank Ltd. Jamkhed 7 Kopargaon Peoples’ Co-operative Bank Ltd. Kopargaon 8 The Sangamner Merchant’s Co-operative Sangamner Bank Ltd. 9 Devyani Urban Co-operative Bank Ltd. Kopargaon 10 Shri Rukmini Co-operative Bank Ltd. Shrigonda 11 Matoshri Mahiia Sahakari Bank Ltd. Parner 12 Mula Co-operative Bank Ltd. Sonai, Tal. Newase 13 Ambika Mahiia Co-operative Bank Ltd. Ahmednagar 14 Ahmednagar Merchant’s Co-o. Bank Ltd. Ahmednagar 15 Rahuri People’s Co-operative Bank Ltd. Rahuri 16 Pravara Co-operative Bank Ltd. Lonij Tal. Rahate 17 Ahmednagar District Primary Teachers Ahmednagar Co-operative Ba.nk Ltd. 18 Shri Swami Samarth Co-op. Bank Ltd. Nighoj^ Tal. Pamer 19 Ahmednagar Shahar Sahakari Bank Ltd. Ahmednagar . 20 Pamer Taluka Sainik Sahakari Bank Ltd. Pamer 21 Abhinav Co-operative Bank Ltd. Rahuri

143 1. The Bhmgar Urban Co-operative Bank Ltd., Bhiiigar: ® The Foundation: The Bhingar Urban Co-operative Bank Ltd. Bhingar was established on 28* March 1909. The RBI issued a banking license on 23’’^ December 1987. ® Change of name: At the first rime, the name was changed jfrom Bhingar Co-operative Society Ltd. to Bhingar Urban Co-operative Credit Society Ltd in 1926 and on 1®^ march 1967 the Bhingar Urban Co-operative Society Ltd. was converted to The Bhingar Urban Co-operative Bank Ltd. ® The Promoters: Late Shri. Balkrushna Sakharam Deshmukh was a chief prompter of the bank. ® The area of operation: Initially this are was limited to Bhingar. At present this area is whole Alimednagar district. ® Membership: At the time of establishment, there were just 19 members. On March 2009 there were 9373 regular members whereas the nominal members were 1722. ® Board of Directors: At present, there are nineteen directors and Shri Gopalrao Zodage is the chairperson of the bank. Every section of the community gets representation in this board. The details are as follows;

144 Table No» 6.3

Board of Directors of BfoinEar Urban Co-operative bank Ltd.

Sr. No Category No. of directors 1 General 11 SG 01 01 OBC 01 Economically Weaker Section 01 Female 02 7 Staff Representative 02 Total 19 (Source: Annual Reports of the bank)

Premises: At the beginning, the society’s office was in tiie rental premises. On 26* October 1978 bank shifted its office in the owned building at Pathardi road, near Shivaji Uddyan,. Bhingar. Branches: This bank has two more branches. One of them is located at Cantonment Shopping Plaza which is stared on 13th April 2002 and other is located at Maliwada, Ahmednagar city. Maliwada branch was stared on 4* October 2003. At present, the Cantonment Shopping Plaza branch is shifted to Pipe Line Road, Ahmednagar and the branch name is changed from Cantonment Shopping Plaza to Pipe Line Road.

145 Table No. 6.4 Progress at glance of Bhingar Urban Co-operative bank Ltd. ( Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 9881 9829 9808.00 9333 9373 Members Nominal 2097 1480 2393.00 2112 1722 Capital Authorized • 200 200 200 200 500 Paid Up Capital 119.97 142.35 169.84 181.73 213.92 Reserve Fund 305.75 331.05 381.75 410.06 459.48 Deposits Current 121.52 201.30 180.17 242.07 375.74 Savings 421.42 478.50 554.94 666.23 740.42 Fixed 2301.07 2455.29 2946.78 2786.06 3645.84 Total 2844.01 3135.09 3681.89 3694.36 4762.00 Loans-Given-Secured 1696.09 2032.41 2641.80 2681.64 3429.54 Non Secured 113.49 120.69 112.24 93.42 82.87 Total 1809.58 2153.10 2754.04 2775.06 3512.41 Loans Taken -ADCCB 0.00 0.00 0.00 0 0.00 Others 0.00 0.00 0.00 0 0.00 Total 0.00 0.00 0.00 0.00 0.00 Investment -ADCCB 707.75 618.70 765.29 902.24 828.07 SCB 0.00 0.00 0.00 0.00 0.00 Go\'t & Others 550.00 550.00 550.00 550.00 550.00 Others 0.00 0.00 0.00 0.00 0.00 Total 1257.75 1168.70 1315.29 1452.24 1378.07 Over dues 6.10 6.20 4.47 3.82 2.75 Audit Class AA A A A Net Profit 34.18 51.48 37.59 55.48 50.74 Employees 38 38 35 35 41 Dividend 12% 12% 12% 12% 12% No. of Branches 3 3 3 3 3 Working capital 3423.7 3795.23 4435.44 4564.50 5774.64 (Source: Annual Reports of the bank)

146 ® Special Features : 1. The availability of demand draft at big cities within the country, 2. The bank has its working hours as per convenient of the customers. It starts its banking functions from 9.30 am to 11.30 am and again from 4.30 pm to 6.30 pm.

2. Hagar Urban Co-operativ© Bank Ltd., Ahmediiagar (Scheduled Bank) ■ The Foundation; The Nagar Urban Co-operative Bank Ltd. was established on 31®! March 1910, = Change in Name: At the beginning, the Bank was credit society titled with Nagar Ufban Co-operative Credit Society Ltd., Ahmednagar. On 10* Dec 1986 it has got banking license and from that it was converted to Nagar Urban Co-operative Bank Ltd. Ahmednagar. ® The Promotes: Late Rao Bahadur G. K. Chitale started this bank as urban credit society. ® The area of operation: Initially this area was limited to Nagar city only. At present, this area is Ahmednagar, Jalana, Parli Baijnath Municipal Council area, Pune and Greater Mumbai districts. ■ Membership: Initially there were 299 members. On 31^ March 2009 the regular membership was 88836 and nominal membership was 17160. ■ Board of Directors: At present, there are twenty-nine directors and Shri. Suvalal Gundecha, is the chairperson of the bank. Every section of the community gets representation in this board. The ’details are as follows;

147 Table No. 6.5 Bo^rd of Directors of Urbaa Co-operative Bank Ltd.

Sr. No Category No. of directors 1 General with Technical 20 directors 2 SC 01 3 ST 01 4 ■ OBC 01 5 Economically Weaker 01 Section 6 Female 03 7 Staff Representative 02 Total 29

(Source: Annual Reports of the bank)

® Premises. This bank has its own building, ‘Sahakar Mandir’ at the center point of the Ahmednagar city. There are 32 branches of the bank, out of these, 10 branches are in owned building and remaining branches are functioning on rental premises. ® Branches: There are 33 branches of the bank including main branch functioning within the area of operation. ® The details of these branches are as follows:

148 Table No. 6.6 Number of braEches of Nagar Urban Co-operative Bank Ltd.

Sr. Place of the Branch Sr. Name of the Branch No. No. 1 Main Branch 18 Kukana 2 Sangamner 19 Kedgaon 3 . Shrirampur 20 ■ Rahuri 4 Vambori 21 Kashti 5 Shrigonda 22 Balamtakli 6 Shevgaon 23 Pamer 7 Belapur gaon 24 Kolhar Bhagvati 8 Pathardi 25 Kharda 9 Newasa 26 Karjat 10 Jamkhed 27 Savedi 11 Mirajgaon 28 Songaon 12 Akole • 29 Pune Gultekadi 13 Jalana 30 Marketyard 14 Parali Vaijanath 31 Sarjepura 15 Sonai 32 Chaupati Karanja 16 Ashwi 33. Kopargaon 17 Rahata

(Source: Annual Reports of the bank)

149 Table Nq. 6.7 Progress at daiiee of Nagar Urban Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 83870 83970 84149 85016 88836 Members Nominal 16774 16431 16830 15720 17160 Capital Authorized 1000.00 1000.00 1000.00 1000.00 1000.00 Paid Up Capital 879.07 831.69 843.38 874.26 942.88 Reserve Fund 4169.60 5264.03 5693.84 5963.12 6363.77 Deposits Current 999.20 1478.56 1900.94 2339.79 1915.78 Savings 518138 5808.69 6272.18 7485.96 8055.83 Fixed 29433.82 25464.73 26013.43 27177.81 32993.29 Total 35614.40 32751.98 34186.55 37003.56 42964.90 Loans-Given-Secured 23167.58 20641.12 21808.68 2374L25 27481.09 Non Secured 1480.87 1319.54 958.64 933.85 1001.32 Total 24648.45 21960.66 22767.32 24675.10 28482.41 Loans Taken -ADCCB 788.24 0.00 0.00 0.00 0.00 Others 309.61 35.34 0.00 0.00 0.00 Total 1097.85 35.34 0.00 0.00 0.00 Investment ADCCB 1872.00 2750.00 2475.00 3295.00 5266.00 SCB 131.70 131.70 191.70 191.70 3449.22 Govt & Others 13927.77 , 12493.95 12378.32 12363.20 12351.08 Others 341.09 154.99 533.93 483.93 1655.93 Total 16272.56 15530.64 .15578.95 16333.83 22722.23 Over dues 26.35 21.10 17.74 16.10 14.65 Audit Class B A A A A Net ProlSt 216.08 263.46 277.63 252.37 309.42 Employees 323 313 301 287 277 Dividend 10% 15% 15% 15% 15% No. of Branches 33 33 33 33 33 Working capital 44655.69 41592.27 42453.19 46244.36 53276.00 (Source; Annual Reports of the bank)

150 Special Features: The bank renders maximum services for the members as well as customers from beginning. Some of them are as follows: 1. As per RBFs directives being a primary co-operative bank, this bank gives one per cent more interest on deposits. 2. Pensioners and old people get special services for depositing and withdrawing money. 3. RBI. has given permission to accept deposits from Non Residential Indians. 4. Bank offers housing loans to the customers. 5. Bank has a facility of issuing drafts at big cities within the country especially Ahmedabad, for this arrangement is made with the nationalized banks. 6. Workers of factories have their salary accounts in this bank. 7. Bank has Pension accounts of employees of Ahmednagar Municipal Corporation^ freedom fighters and Ex MLA. 8. Bank has collected electricity bills up to 3 March 1999. 9. Bank gives loans to the weaker sections, such as Peddlers and. Hawkers, vegetable dealers and so many other small businessmen, at reasonable rate at 4%. This bank started this scheme from 1970. 10.The Co-operative housing society is established for employees and for this loan is made available for the employees at reasonable rate. 11. Bank has performed many social services for the public; 12. The educational loans are available for the members. 13. All branches of the bank are computerized. 14. D-Mat facility is available with bank.

151 3. Gaatem Co-operativ© BaEk Ltd.« GaetamKagar. TaL Kopargaon ® The Foundation: The Gautam Co-operative Bank Ltd. was established on 22"*^ April 1976 and RBI issued a banking license to the bank on 14* March 1977. ® The Promoters: The renowned politician and founder of Kopargaon Co-operative Sugar factory Ltd. Shri Shankarrao Kale established the Gautam Co-operative Bank Ltd. ® The area of operation; Initially this was limited to Kopargaon only. At present this area is whole Ahmednagar, Nashik, Aurangabad, Pune and Thane districts. ® Board of Directors: At present, there are twenty-three directors and Shri. Ashokrao Kale is the chairperson of the bank. Every section of the community gets representation in this board. The details are as follows; Table No. 6,8 Board of Directors of Gautam Co-operative Baak Ltd.

Sr. No Category' No. of directors 1 General with Technical 14 directors 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker 01 Section 6 Female 03 7 Staff Representative 02 Total 23

(Source: Annual Reports of the bank)

152 Membership: At the time of establishment, there were 1181 members. On ST* March 2009 there were 16207 regular members and 1636 nominal members. Premises: From the begirming the head office and Gautamnagar branch is settled on owned premises. Branches: This bank has 14 branches within its area of operation. These branches are as follows.

Table No. 6.9 Number of branclies of Gaiitam Co-operativ© Bank Ltd.

Sr. No. Place of Branches Sr. No. Place of Branches 1 Head office 8 Pohegaon 2 Gautamnagar 9 Rahuri 3 Kopargaon 10 Akole 4 Sanwastar 11 Kolhar 5 • Shirdi 12 Lasalgaon 6 Vavi 13 Nashik 7 Sakuri 14 Newasa

(Source: Annual Reports of the bank)

153 (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 8289 9287 11101 15906 16207 Members Nominal . 14221 ■ 7925 3388 1158 1636 Capital Authorized 200.00 400.00 400.00 400.00 400.00 Paid Up Capital 128.93 . 220.37 284.27 359.65 366.46 Reserve Fund , 616.17 67L17 910.43 954.67 1300.70 Deposits Current 55.58 88.09 134.06 181.64 175.32 Savings 787.67 817.13 836.47 1077.30 1187.25 Fixed 11039.21 10200.47 8434.15 7274.90 6791.67 Total 11882.46 11105.69 9404.68 8533.84 8154.24 Loans-Given-Secured 7963.04 7427.65 7106.03 6020.90 4702.31 Non Secured 83.02 95.45 92.93 23.45 254.52 Total 8046.06 7523.10 7198.96 6044.35 4956.83 Loans Taken ADCCB 804.91 0.00 508.01 0.00 0.00 Others 0.00 0.00 0.00 0.00 0.00 Total 804.91 0.00 508.01 0.00 0.00 Investment - ADCCB 2003.15 1233.15 984.14 907.15 1391.77 SCB 2.56 2.56 2.56 2.56 2.56 Govt & Others 2028.34 2010.16 1991.99 1973.81 1959.13 Others 15.00 10.00 0.00 0.00 150.00 Total' 4049.05 3255.87 2978.69 2883.52 3503.46 Over dues 12.05 19.96 18.63 20.44 39.20 Audit Class B C' C C C Net Profit 27.01 21.00 21.25 25.25 -479.26 Employees 159 161 161 159 139 Dividend 0% 0% 0% 0% 0% No. of Branches 15 15 15 15 14 Working capital 13647.37 12151.45 11255.64 10062.42 10008.72 (Source: Annual Reports of the bank)

154 ® SBedal Features; . L Bank has started a demand draft facility and gives demand draft on HDFC Bank. ■ 2. Prizes and Awards: This bank has got following awards. a. Loknete Rajaram Bapu Patil Yuvakmudra Award. b. Late Shri. Baiasaheb Satbhai Award for ideal bank c. Certificate from Collector for purchasing Indira Vikas Patra. O'

4. ShrL Bhansaheb Thorat Amriitvahtiii Co-operative Bank Ltd... Ghiilewadi SangamBer ■ The Foundation: ‘Amrutvahini Urban Co-operative Bank Ltd.’ was flu established on 7 June 1983 and banking license from RBI was received on 28* July 1983. ■ The Promoters: Noble Freedom Fighter Sahakar Maharshi Shri. Bhausaheb Santuji Thorat established Amrutvahini Urban Co­ operative Bank Ltd. ® Change in Name: Earlier this bank was established as Amrutvahini Urban Co-operative Bank Ltd. and in the 26* annual general meeting of the bank; this name was changed to Shri. Bhausaheb Thorat Amrutvahini Co-operative Bank Ltd. Ghulewadi. ■ The area of operation: Initially this was limited to Sangamner city only. At present, this area is whole Ahmednagar district. ■ Membership: At the time of registration, there were 1983 members. On 31®^' March 2009 the number of general members was 5270 and nominal members was 772. ■ Board of Directors: At present, there are nineteen directors and Shri Vallabhray Pandit is the chairperson of the bank. The details are as follows;

155 Table No.6.11 Board of Directors of Shri. Bhausaheb Thorat Amrutvahini Co-operative Bank Ltd. Sangamner Sr. No Category No. of directors 1 General with Technical 11 directors 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker 01 Section 6 Female 02 7 Staff Representatixe 02 Total 19 (Source: Annual Reports of the bank) Premises: The head office and main branch of the bank has beautiful and spacious building at Nashik Road, Ghulevadi, Tal. Sangamner. The Market Yard branch is on rental premise. Branches: This bank has three branches. It has one extension counter at Amrutvahini College of Engineering, Sangamner.

Table No. 5.12 Number of branches of Shri. Bhausaheb Thorat Amrutvahini Co-operative Bank Ltd. Sr. No. Place of the Branch Year of establishment 1 Ghulevadi 1983 2 Market yard 1996 3. Ext. Counter at Amrutvahini College 1986 of Engineering, Sangamner. (Source: Annual Reports of the bank)

156 Table No. 6.13 Progress at glance of Shri. Bhausaheb Thorat Amrutvahini Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 4952 5009 5078 5143 5270 Members Nominal 4791 546 609 769 772 Capital Authorized 100.00 100.00 200.00 200.00 200.00 Paid Up Capital 74.82 90.92 105.96 123.08 151.53 Reserve Fund 261.15 304.95 333.23 357.87 443.26 Deposits Current 13.56 165.90 101.88 126.83 179.27 Savings 438.80 642.54 750.42 669.74 863.43 Fixed 2066.84 2143.16 2743.10 3490.23 4605.44 Total 2519.20 2951.60 3595.40 4286.80 5648.14 Loans-Given-Secured 1703.84 2068.74 2325.45 2833.23 3425.97 Non Secured 3.64 3.42 2.57 2.45 62.49 Total 1707.48 2072.16 2328.02 0.00 3488.46 Loans Taken ADCCB 0.00 0.00 0.00 0.00 0.00 Others 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 0.00

1 inx estment ADCCB 510.95 604.95" 928.48 : 1275.34 948.48 SCB 2.50 2.50 2.50 2.50 2.50 Govt & Other 623.82 623.82 623.82 623.82 623.82 Debentures Others 0.00 0.00 0.00 0.00 750.21 Total 1137.27 1231.27 1554.80 1901.66 2325.01 Over dues 29.05 17.25 18.25 18.61 13.56 Audit Class A AA AA Net Profit 17.39 16.55 20.38 10.76 40.76 Employees 43 42 42 42 42 Dividend 8% 8°^o 8% 7% 1 1 % 1 No. of Branches ! J)-> 3 Working capital 3491.76 3001.44 4200.66 4967.45 6724.96 (Source: Annua Reports of the bank)

157 Ashok Co-op©ratlv© Bank Ltd.^ Ahmedffiasar ® The Foundation: Ashok Co-operative Bank LM. was established on 26th June 1996 and Bank has got banking license on 24* September 1996. ® Change in Address: Initially the registered address of the bmk was Salunke Building, Main Road, Shrirampur. For widening the area and working of the bank, on 4* August 2006 the head office was shifted from Shrirampur to Ahmednagar at Shivaji Sankul, Market Yard, Kothi Road, Ahmednagar. ® The Promoter: Renowned politician and Chartered Accountant Shri. Bhanudas Kashinath Murkute. established this bank. ® The area of operation: Initially this was limited to Shrirampur only. At present this area is whole Ahmednagar, NasMksAurangabad, Pune and Thane districts. ■ Membership: On 31®* March 2009 the number of regular members was 5765 and nominal members 984. ■ Board of Directors: At present, there are 15 directors and the promoter, Mr. Bhanudas Murkute is the chairperson. Other directors in the board support him. The composition of the board is as follows: Table No.6.14 Board of Directors of Ashok Co-operative BaEk Ltd. Sr. No Category No. of directors 1 General 08 2 SC 01 3 ST 01 4 OBC , 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 01 Total 15

158 Premises: This bank has its Head office and five branches within the area of operation, which are located at rental premises. Branches: Ashok Co-operative Bank Ltd. has six branches including head office. It has separate loan office at Shrirampur. The branches at Belapur and Taklibhan are closed and new branches at Wagholi and Alephata are started. The details are as follows;

Table No. 6.15 Number of branches of Ashok Co-operative Bank Ltd.

Sr. No. Place of the Branch Year of ! Establishment i 1 Head office and main Branch at 2004 Ahmednagar 2 Shrirampur 1996 3 Ashoknagar 2000 4 Alephata Dist Pune 2009 5 Wagholi Dist Pune 2009 6 Chakan,.Dist. Pune 2009

(Source: Annual Reports of the bank)

159 Table No. 6,16 Progress at Elamces of Ashok Co-operative Ba-ak Ltd.

Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General ■ 5930 6200 63250 6436 5765 Members Nominal 1860 1867 2057 2200 984 Capital Authorized 100.00 100.00 200.00 200.00 200.00 Paid Up Capital 78.98 83.63, 93.75 98.64 112.29 Reserve Fund 155.61 196.79 204.00 238.92 293.68 Deposits Current 94.19 81.78 83.93 71.08 105.79 Savings 313.75 • 400.88 497.99 677.10 676.88 Fixed 2452.43 2536.70 2356.63 2693.95 2924.47 Total 2860.37 3019.36 2938.55 3442,13 3707.14 Loans-Given-Secured 1968.46 1894.94 1899.25 1905.91 2439.84 Non Secured 3.25. 4.24 4.25 8.11 25.85 Total 1971.71 1899.18 1903.50 1914.02 2465.69 Loans Taken ADCCB 0.00 0.00 0.00 0.00 0.00 Others 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 0.00 Investment ADCCB 0.00 0.00 0.00 0.00 0.00 SCB 0.01 0.01 0.01 0.01 0.01 Govt & Others 700.03 650.03 650.03 550.03 600.03 Others 213.83 499.00 ' 414.00 1062.94 808.05 Total 913.87 . 1149.04 1064.04 1612.98 1408.09 Over dues 6.51 6.49 6.76 7.06 6.08 Audit Class A A A A A Net Profit 16.45 9.00 28.66 32.06 36.88 Employees 42 45 44 44 43 Dividend 0% 0% 10% 10% 10% No. of Branches 5 5 5 6 6 Working capital 3153.79 3345.3 3409.06 3906.34 4241.94 (Source: Annual Reports of the banlc)

160 ® Special features; 1. Demand draft facility is available. 2. 1% rebate to the regular members who pay regular installments.

6. Jamkhed MerchaEts^ Co-operative Baak Ltd.. Jamklied.. ® The Foundation: Jamkhed Merchants’ Co-operative Bank Ltd. was established on 8* April 1996. RBI has given Banking license on 3*"'^ October 1996. ® The Promoters: Mr. Dilip Chandmal Bafana^ a famous merchant in the Jamkhed city, established Jamkhed Merchants’ Co-operative Bank Ltd. ■ The area of operation: The area of operation of this bank is Jamkhed taluka. ■ Membership: On 31^ March 2009 there were 2150 regular members and 415 nominal members. ® Board of Directors: At present, there is administrative board of three persons appointed by the Deputy Registrar of Ahmednagar District. The composition of the board is as follows:

Table No. 6.17 Admiaistratlve Board @f Jamklied MerchaKts’ Co-operative Bank Ltd.

Sr. No Category No. of directors 1 General 03 Total 03

(Source: Annual Reports of the bank)

161 ...Table...... No. 6»1§. Progress at Maiiee of Jamkhed Mdrchaets^ Co-operative Bank Ltd, (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 2098 2104 2133 2153 2150 Members Nominal NA 1471 845 415 533 Capital Authorized 50 50 50 50 50 Paid Up Capital 33.38 38.16 41.47 46.18 45.34 Reserve Fund 32.61 37.91 56.15 66.35 69.03 Deposits, Current 13.17 23.22 174.68 167.74 182.81 Savings 98.01 123.01 1223.41 1276.90 165.29 Fixed 870.68 995.68 1048.73 1111.46 881.97 Total . 981.86 1141.91 2446.82 2556.10 1230.07 Loans-Given- 758.60 954.16 880.82 953.76 884.66 Secured Non Secured 0.00 0.00 0.00 0.00 0.00 Total 758.60 954.16 880.82 953.76 884.66 Loans Taken 0.00 0.00 0.00 0.00 0.00 ADCC Bank Others 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 0.00 Investment 50.00 100.00 180.00 150.00 210.00 ADCCB SCB 12.50 12.50 12.50 12.50 12.50 Govt & Other 181.20 181.20 181.50 181.50 179.66 Debentures Others 31.78 17.85 33.18 45.80 52.05 Total 275.48 31L55 407.18 389.80 454.21 Over dues 13.79 14.59 13.16 26.15 40.00 Audit Class B B BB C Net Profit 3.99 17.49 11.46 2.01 4.14 Employees 15 15 16 15 14 Dividend 12% 12% 12% 12% 12% No. of Branches 2 2 2 2 2 Working capital 1152.19 1397.27 1536.96 1559.12 1591.76 (Source; Annual Reports of the bank)

162 ■ Premises /Branches; This bank has two branches including head office and they are at rental premises. Head office and main branch, located at Tahsil Road, Jamkhed, started on 8* April 1996 and Market Yard branch is started on 6* January 2004.

® Special FeatMres. t. 1. With the help of HDFC Bank Pune, IDBI Bank Pune,’ UTI Bank Ahmednagar Demand draft facility is made available for the customers. 2. Facility to pay insurance premium. 3. Facility to pay income tax through HDFC Bank. 4. Bank has appointed pygmy agents for collecting daily deposits from the customers and bank has distributed saving machines to the agents.

7. Th© Kopargaoii PeoBles Co-operative Bank Ltd.« Kopargaom ® The Foundation: The Kopargaon Peoples Co-operative Bank Ltd., Kopargaon was established on 29* October 1948. ® Change in the name; The Kopargaon Peoples Co-operative Credit Society Ltd. Kopargaon was transformed to the bank on 31^ October 1987 wide banking license no. UBD/MH7901 P with the title ‘The Kopargaon People’s Co-operative Bank Ltd., Kopargaon’ ■ The Promoters; The Kopargaon Peoples Co-operative Bank Ltd., Kopargaon was established by Late Shri Mohanlal Kalidas Vyas, a renowned businessman. ■ The area of operation: Initially this was limited to Kopargaon only. At present, this area is whole Ahmednagar, Nashik, Aurangabad, Pune, Jalgaon and Thane districts.

163 ® The membership: At the time of registration, the number of the members was less than 500. On 31®* March 2009 the regular members were 4087 and nominal members were 4955. ® Board of Directors: Initially there were seven directors as it was credit society. When society was converted into bank the number of directors was eleven and on 3T* March 2009 this number was nineteen. The composition is as follows;

Table No. 41-9 Board of Direetors of The Koparaaoa Peoples Co-oBeratty© Baak Ltd.

Sr. No Category No. of directors 1 General 12 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 01 Total 19 (Source: Annual Reports of the bank) s Premises: The bank has its own building for head office and main branch at Mahatma Phule Road, Kopargaon. Remaining seven branches are located at rental premises. H Branches: This bank has eight branches within the area of operation. The details are as follows:

164 Table No. 6.20 Number of branches of The Kopargaon Peoples Co-operative Bank Ltd.

Sr. No. Place of the Branch Sr. No. Place of Branch H. O. and Main Branch Ahmednagar Puntamba 6 Aurngabad Shirdi y Yeola Rahata 8 Lasur Station (Source: Annual Reports of the bank)

■ Special Features : 1. 2% rebate plus 1 % bonus rebate to the regular members who pays regular installments of their loans. 2. It gives loans to their employees at concession rate. 3. This Bank has started RTGM service with the help of ICICI Bank 4. This bank has started SMS facility for the members. 5. The places of its branches are connected through core banking system. 6. With the help of HDFC Bank, ICICI Bank, Maharashtra State Co­ operative bank, State Bank of India, State Bank of Hyderabad and Nashik merchants Co-operative bank, bank renders demand draft facility at low rate within the country. 7. Bank has started Share D-Mat facility for the people of the Kopargaon city.

165 Table No. 6.21 Progress at Glance of The Kopargaon Peoples Co-operative Bank Ltd. (Rs. in lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 3927 3923 3904 3946 4087 Members Nominal 2921 5555 5811 3086 4955 Capital Authorized 100.00 100.00 100.00 100.00 150.00 Paid Up Capital 68.96 76.18 88.36 99.24 140.12 Reserve Fund 1042.40 1197.89 1292.83 1414.94 1603.96 Deposits Current 309.36 511.33 454.63 569.95 550.87 Savings 813.56 958.90 1037.00 1554.75 1797.19 Fixed 7562.00 7561.82 7055.00 7725.80 8962.91 Total 8684.92 9032.05 8546.68 9850.50 11310.97 Loans-Given- 5824.81 5701.25 5701.25 5708.90 5882.09

S ecu red i Non Secured 89.41^ "89.T2 89.12 59.75 52.90 Total 5914.22 5790.37 5790.37 5768.65 5934.99 Loans Taken 0.00 0.00 0.00 0.00 0.00 ADCC Bank Others 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 0.00 Investment 770.20 1196.74 848.17 2131.54 2387.82 ADCCB SCB 765.03 397.53 465.03 465.03 465.03 Govt & Other 2000.00 2000.00 2000.00 2000.00 2000.00 Debentures Others 120.20 306.71 515.13 686.13 1708.87 Total 3655.43 3900.98 3828.33 5282.70 6561.72 Over dues 8.53 6.67 4.86 3.36 2.17

Audit Class A a ’’i A i A A Net Profit ...... '"52.97' 58.59 59.13 61.01 68.20 Employees 79 78 77 78 82 Dividend 15% 12% 12% 15% 15% No. of Branches 9 8 8 8 8 Working capital 10633.78 10595.38 11945.43 10268.64 13584.03 (Source; Annual Reports of the bank)

166 8. Sangamner Merchants’ Co-onerative Bank Ltd., Sangamner. ■ The Foundation: The Sangamner Merchants Bank Ltd. was established on 26* November 1965 and Banking license from RBI was got on 18th August 1986. ■ The Promoter: Late Shri. Onkamath Malpani was the chief promoter of this bank. ■ The area of operation: Initially this was limited to Sangamner only. At present this area is whole Ahmednagar and Nashik districts. ■ The Membership: At the beginning, there were 211 members. On 31®‘ March 2009 there were 4677 regular members and nominal members were 13 87. ■ Board of Directors: At the beginning, there were 11 directors. On 30* March 2009 the number of directors was twenty. The details are as follows.

Table No.6.22 Board of Directors of Sangamner Merchants’ Co-operative bank Ltd.

Sr. No Category No. of directors 1 General including tech. director 13 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 01 Total 20 (Source: Annual Reports of the bank)

167 Premises / Branches:. At present the head office and two branches are having own building. The details of these branches are as follows:

Table Ho, 6. 23

Miimber of branches of San^aiimer Merchaiife^ Co-OBerative Bank Ltd.

Sr. No. Place of the Branch 1 Head Office and Main Branch at Sangamner 2 Akole 3 Bazar peth, Sangamner (Source: Annual Reports of the bank)

® Special functions and activities: 1. Bank has 'started insurance services, with the help of ICICI- Lombard General Insurance Company. Bank takes insurance of saving account holders having minimum Rs. 1000/- balance in the account. 2. Bank has also started e-payment facility for customers. They can pay their Income tax payment through this facility. 3. Core banking service within the branches of the bank is also available with the bank. 4. ATM at main branch will start very soon. 5. This bank has started SMS facility for the members.

168 . Table No. 6.24 Progress at glance of Sangamner Merchants’ Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 4307 4567 4651 4641 4677 Members Nominal 2172 2538 3110 1343 1387 1 Capital Authorized 200 200 200 200 200 Paid Up Capital 103.54 119.94 157.96 167.20 191.46 Reserve Fund 658.41 661.37 1030.19 1090.67 1159.37 Deposits : Current 485.01 107.24 466.51 413.56 259.77 Savings 665.50 754.13 1006.10 975.00 1060.05 Fixed 3687.31 4773.70 4264.42 5441.98 7511.73 Total 4837.82 5635.07 5737.03 6830.54 8831.55 Loans-Given- 2874.10 3191.60 3802.83 3966.19 5342.20 Secured Non Secured 203.02 188.47 170.22 165.01 156.10 Total 3077.12 3380.07 3973.05 4131.20 5498.30 ' Loans Taken 0.00 0.00 i 0.00 0.00 360.00 1 ADCC Bank i Others 1.42 52.18 79.20 46.10 427.71 Total 1.42 52.18 79.20 46.10 787.71 Investment 711.12 949.35 384.12 712.21 710.21 ADCCB SCB 123.16 123.16 123.16 123.16 123.16 Govt & Other 997.00 1049.42 841.87 841.87 1017.49 Debentures Others 239.70 495.49 1008.57 1431.87 2837.13 Total 2070.98 2617.42 2357.72 3109.11 4687.99 Over dues 8.93 9.07 6.07 6.52 5.53 Audit Class A A AA A Net Profit 26.40 25.26 31.87 41.77 51.15 Employees 59 58 1 56 52 62 i [dividend 1 2% 12% 1 2% 14% 14% - > ; j ) " ' No. of Branches 3 3 Working capital 5658.62 6479.83 6704.42 1 7854.76 10093.77 (Source: Annual Reports of the bank)

169 9. ® The Foundation: The Devyani Co^-operative Bank Ltd. was established on 15^^ March 1996 and bank has . got banking license form RBI on 15* October 1996. ® The Promoten The renowned politician and Ex Minister of co­ operation of Maharashtra state Shri. Shankarrao Genuji Kolhe established Devyani Co-operative Bank Ltd., Kopargaon. ® The area of operation: Initially this was limited to Kopargaon only. At present this area is Alimednagar and Nashik districts. ® Membership: At the beginning, there were less than 500 members. On 31®‘ March 2009 the regular membership of this bank was 2893 and nominal membership was 259. Board of Directors: At the begirmingj there were thirteen directors in the board. At present, this number is increased up to nineteen. The details of this are as follows.

Table No. 6.25 Board of Directors of PevyaEil Co-operative BaakLtd.

Sr. No Category No. of directors 1 General including tech, director 13 2 SC 01 3 ST 01 4 ■OBC 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 00 Total 19 (Source: Annual Reports of the bank) 170 ■ Premises / Branches: The head office and the main branch and its extension counter are on rental premises.

Table No. 6.26 Number of branches of Devyani Co-operative Bank Ltd.

Sr. No. Place of the Branch 1 Head Office and Main Branch at Kopargaon Extension Counter at Sahajanandnagar

(Source: Annual Reports of the bank)

Special Functions and Activities: 1. Bank has taken insurance agency. 2. With the help of HDFC Bank Demand draft facility is made available for the customers. 3. 2% rebate to the regular members who pays regular installments of their loans.

171 Table No. 6.27 Progress at glance of Devyani Co-operative Bank Ltd: (Rs. in Lakhs) Details / Year 2004-05 2005-06 ' 2006-07 2007-08 2008-09 Members General 2454 2465 2650 2813 2843 Members Nominal 5213 1645 1113 1222 259 Capital Authorized 50 100 100 100 100 Paid Up Capital 48.97 49.39 61.59 63.97 66.52 Reserve Fund 235 J 3 468.40 408.06 213.10 003 2"^ Deposits Current 103.02 167.17 49.12 20.13 72.60 Savings 185.89 183.12 140.71 154.95 192.84 Fixed 2938.99 2530.75 2694.20 2395.89 1958.23 Total 3227.90 2881.04 2884.03 2570.97 2223.67 Loans-Given- 2258.72 1934.24 1453.94 1548.04 1492.13 Secured Non Secured 157.46 79.33 168.67 31.59 22.56 Total 2416.18 2013.57 1622.61 1579.63 1514.69 Loans Taken 296.80 0.00 0 0.00 0.00 ADCC Bank Others 0.00 0.00 0 0.00 0.00 Total 296.80 0.00 0 0.00 0.00 investment 466.45 449.03 674.72 370.50 150.40 i 1 ADCCB 1 SCB 1.01 1.01 1.01 1.01 1.01 Govt & Other 600.00 600.00 628.77 626.74 624.75 Debentures Others 0.00 0.00 0 0.00 0.00 Total 1067.46 1050.04 1264.5 998.25 776.16 Over dues 8.01 17.87 24.09 30.46 18.40 Audit Class C D CC B Net Profit 0.09 -233.81 43.12 45.17 46.01 Employees 22 22 19 19 19 Dividend 0% 0% 0% 0% 0 No. of Branches 1 1 1 1 1 Working capital 3773.84 3246.42 3275.68 2724.05 2546.82 (Source: Annual Reports of the bank)

172 10. Shri. Rukmini Co-operative Bank Ltd. Shrigonda ■ I he Foundation: Shri. Rukmini Co-opcralive Bank Ltd. was established on 19"’ September 1997 and Reserve Bank of India has given banking license to the bank on 24* November 1997. ■ The Promoter: Shri. Rukmini Co-operative Bank Ltd. was started by Shri. Vasant Bapurao Gund, a chartered accountant. ■ The area of operation: Initially this area was limited to Shrigonda only. At present this area is whole Ahmednagar, Nashik,Aurangabad, Pune,Beed,Sholapur and Thane districts. ■ Membership: On 3 P’ March 2009 the number of regular members was 2560. ■ Premises and Branches: This bank has three branches which are functioning from rental premises. The details of these branches are as follows.

Table No. 6.28 Number of branches of Shri. Rukmini Co-operative Bank Ltd.

Sr. No. Place of the Branch 1 Head Office and Main Branch Shrigonda 2 Karjat BeKandi Bk, (Source: Annua! Reports of the bank)

Board of Directors: At the time of formation, the number of directors was thirteen. As per directives of RBI and Co-operative department the number of directors is increased up to seventeen. The composition of the board is as follows;

173 Table No. 6.29 Board of Directors of ShrL Riikikiiffli CQ~operat!ve Baak Ltd. Sr. No Category No. of directors 1 General including tech. director 11 2 SC 01 3 ST oi 4 OBC. 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 00 Total 17

(Source: Annual Reports of the bani:)

® Special FuEctioiis and Activities: 1. Demand draft facility is available. 2, All branches are computerized and they are on line.

174 Table No. 6.30 Progress at glance of Shri. Rukmini Co-operative Bank Ltd: (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 2279 2350 2453 2444 2560 Members 1028 1690 NA NA 978 Nominal Capital 100.00 200.00 200.00 200.00 200.00 Authorized Paid Up Capital 51.40 56.03 63.03 67.17 78.26 Reserve Fund 70.03 105.14 136.19 160.43 206.04 Deposits Current 5.98 9.87 ! 7.35 1 10.78 9.06 Savings 87.90 140^94^ 204.77 270.94 364.31 Fixed 978.16 1 180.73 1295.72 1420.40 1698.13 Total 1072.04 1331.54 1507.84 1702.12 2071.50 Loans-Given- 739.78 776.07 826.92 989.18 1324.59 Secured Non Secured 0.00 49.96 74.32 144.49 34.89 Total 739.78 826.03 901.24 1133.67 1359.48 Loans Taken 25.05 0.00 0.00 0.00 0.00 ADCC Bank Others 0.00 0.00 0.00 0.00 0.00 Total 25.05 0.00 0.00 0.00 0.00 Investment 187.86 278.14 385.43 205.69 321.82 ADCCB SCB 0.25 0.00 0.00 29.00 102.26 Govt & Other 242.45 290.61 316.34 314.94 295.26 Debentures 1 Others- SBI 0.00 0.00 0.00 135.00 172.58 Total 430.56 568.75 701.77 684.63 891.92 Over dues 2.99 5.19 4.99 4.88 5.22 Audit Class A A A A A Net Profit 18.28 19.42 15.25 15.42 16.08 Employees 9 9 9 9 9 Dividend 11% 11% 10% 10% 10% No. of Branches 3 3 3 3 3 Working capital 1535.58 1593.9 1835.78 2158.21 2730.32 (Source: Annual Reports of the bank) 11. Motoshri Mahila Co-operative Bank Ltd., Parner ■ The Foundation: Motoshri Mahila Co-operative Bank Ltd. established on 6"' June 2002 and has got the banking license from RBI on 1 1/10/2003. ■ The Promoter: Matoshri Mahila Co-operative Bank Ltd. was established by Shri. Tukaramji Mate. ■ The area of operation; The area of operation of this bank is limited to the Pamer taluka. ■ Membership: On March 2009 the regular membership was 1494 and nominal membership was 310. ■ Board of directors: From the beginning, the number of directors is seventeen including professional directors. Board also accepts associate directors, as per need. The composition is as follows.

Table No.6.31 Board of Directors of Matoshri Mahila Co-onerative Bank Ltd.

Sr. No Category No. of directors 1 Female-General including tech. 11 director 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Staff Representali\e 00 7 Associate directors 02 Total 17

(Source: Annual Reports of the bank)

176 Premises aad Braaehes; This bank has head office and main branch at registered address of the bank at Pamer, which is ftmctioning at rental premises. The details of these branches are as follows.

Table No. 6.32

Number of branches of Motoshrl Mahila Co-operative Bank Ltd.

Sr. No. Place of the Branch 1 Head Office and Main Branch at Pamer

(Source: Annual Reports of the bank)

Special fuactions and activities; 1. The ownership of this bank is with women only. 2. 1% rebate to the regular members who pays regular installments of their loans.

177 Table No. 6.33 Progress at glance of Motoshri Mahila Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 1187 1244 1335 1448 1494 Members Nominal 123 173 169 328 310 Capital Authorized 50.00 50.00 50.00 50.00 50.00 Paid Up Capital 17.94 18.68 21.04 21.32 22.65 Reserve Fund 1.39 3.07 4.81 4.96 5.37 Deposits Current 1.42 0.45 0.96 2.92 3.19 Savings 12.81 22.04 38.83 28.56 39.93 Fixed 110.82 137.00 154.30 188.36 196.56

Total 125.05 159.49 194.09 1 219.84 239.68 Loans-Given- ■74.2V 81,49 ¥8^98" 132.36 137.45

S ecu red 1 Non Secured 2.03 18.97 40.82 19.91 28.62 Total 76.28 100.46 129.80 152.27 166.07 Loans Taken 21298.00 0.00 0.00 0.00 0.00 ADCC Bank Others 0.00 0.00 0.00 0.00 0.00 Total 21-298.00 0.00 0.00 401.33 0.00 Investment 20.03 22.53 29.52 34.50 34.50 ADCCB SCR 0.00 0.00 0.00 0.00 0.00 Govt & Other 12.92 17.44 18.35 18.30 23.53 Debentures 1 Others 0.00 1.72 2.07 8.49 11.21 Total 32.95 41.69 49.94 61.29 69.24 Over dues % 8.00 10.30 12.00 12.92 12.97 Audit Class B B ' A A A 1 Net Profit -2.92 0.3! 0.32 0.32 0.13 Employees 8 8 8 8 8 Dividend 00 00 00 00 00 No. of Branches 1 1 1 1 1 Working capital . 152.5 180.87 218.48 235.87 272.9 (Source: Annual Repoils of the bank)

178 12. Mula Co-operative Bank Ltd., Sonai, Tal. Newasa ■ The Foundation: The Mula Co-operative Bank Ltd. was estabhshed on 13''’ May 1997. and RBI has given banking license on 2”*^ September 1997

■ The Promoter; Shri. ShankarraoYashwantrao Gadakh, a young

politician, established the Mula Co-operali\ e Bank l.td. ■ The area of operation: Initially this was limited to Newasa taluka only. At present, this area is whole Ahmednagar district. ■ The Membership; On 3 T' March 2009 there were 2019 members ■ The Board of Directors: Initially the number of directors in the board was eleven. At present, the number of directors is reached up to seventeen, which includes two professional directors. The composition of board is follows;

Table No. 6.34 Board of Directors of Mula Co-operative Bank Ltd.

Sr. No Category j1No. of directors 1 General including tech. director 1 1 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 00 Total 17

(Source: Annual Reports of the bank)

179 Premises: The head office including main branch and one more branch, all are working at rental premises. Branches: This bank has two branches; the details are as follows,

Table No.6.35 Number of branches of Mula Co-operative Bank Ltd.

Sr. No. Place of the Branch i 1 Head Office and Main Branch Sonai 0 Newase

(Source: Annual Reports of the bank)

Special Functions and Activities; 1. Bank draft facility is available with the bank. 2. Pigmy agents are appointed for collecting daily deposits from customers

180 Table No. 6.36 Progress at Glance of Mula Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 1739 1737 1746 1904 2019 Members Nominal NA NA NA NA 415 Capital Authorized 50.00 50.00 50.00 50.00 50.00 Paid Up Capital 35.90 36.48 37.34 39.90 47.12 Reserve Fund 263.00 299.37 393.88 492.23 564.60 Deposits Current 3.52 8.22 6.92 8.01 6.03 Savings 161.38 203.50 234.65 252.06 326.49 Fixed 1183.58 1195.82 1098.89 1054.10 1143.76 Total 1348.48 1407.54 1340.46 1314.17 1476.28 Loans-Given- 703.78 835.83 1075.37 977.81 875.09 Secured Non Secured 150.22 113.25 82.86 50.66 77.58 Total ! 854.00 949.08 11 58.23 1028.47 952.67 Loans Taken 0.00 0.00 0.00 0.00 0.00 ADCC Bank 1 Others 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 0.00 Investment 1.51 1.51 2.00 2.00 2.00 ADCCB SCB 0.00 0.00 0.00 0.00 0.00 Govt & Other 525.00 372.57 371.19 316.74 315.60 Debentures Others 0.00 0.00 0.00 0.00 0.00 Total 526.51 374.08 373.19 318.74 317.60 Over dues NA NA NA NA NA Audit Class B B B B B 10.14 Net Profit 6.03 8.89T1 5.46 7.31 Employees 15 15 15 1 13 13 Dividend 0% ' 0% 1 0% ! 0% 0% No. of Branches o j 2 9 Working capital 1877.85 1865.27 1826.97 1903.56 2194.52 (Source: Annual Reports of the bank) 13. The Ambika Mahila Sahakari Bank Ltd., Ahmednagar. ■ The Foundation: The Ambika Mahila Sahakari Bank Ltd. was established on 18^'' September 1987 and banking license was obtained from the RBI on 9^'^ December 1987. ■ The Promoter: Prof. Mrs. Megha Yashwantrao Kale established the Ambika Mahila Sahakari Bank Ltd. ■ The area of operation: Initially this was limited to Ahmednagar city only. At present, this area is w.hole Ahmednagar district. ■ Membership; The membership of this bank is restricted to female only. On 3f’’ March 2009 there were 5259 regular members and 1057 nominal members. ■ Board of Directors: Initially the number of directors in the board was eleven. At present, the number of directors is reached up to seventeen, which includes two professional directors who are male. As it is the bank of women, all directors are female. The composition of board is as follows; Table No. 6.37 Board of Directors of The Ambika Mahila Sahakari Bank Ltd. Sr. No Category No. of directors 1 General | 1 1 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Professional directors (Male) 02 7 Staff Representative 00 Total 17 (Source: Annual Reports of the bank)

I 82 Table No. 6.38 . Nember of branches of The Ambika Mahila Saliakari Bank Ltd.

Sr. No. Place of the Branch 1 Head Office and Main Branch, Maliwada. 2. Pipe line road, Ahmednagar

® Premises/ Branches: This bank has its own buildings for head office and branches. The details of branches are as follows;

® Special fnBctloEs amd activities; 1. This bank is owned by female members. 2. Demand draft facility is available. 3. Both the branches are computerized. 4. Bank has facility to pay electricity bills.

183 Table No. 6.39 Progress at Glance of The Ambika Mahila Sahakari Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 1 Members General 5 155 5196 5205 i 5220 5259 Members 1 137 1020 1030 1 1676 1057 1 Nominal I Capital 60.00 60.00 60.00 60.00 60.00 Authorized 1 Paid Up Capital 42.53 46.57 49.22 50.40 54.25 Reserve Fund 110.75 124.35 142.44 154.32 174.85 Deposits Current 18.45 16.84 19.82 29.65 37.55 Savings 235.82 243.18 293.64 356.71 470.06 Fixed 612.02 678.69 730.46 851.75 934.36 Total 866.29 938.71 1043.92 1238.11 1441.97 Loans-Given- 459.33 537.78 640.26 717.82 874.31 Secured Non Secured 75.74 73.10 85.75 61.21 68.95 Total 535.07 610.88 726.01 779.03 943.26 Loans Taken 0.00 0.00 0.00 0.00 0.00 ADCC Bank Others 0.00 0.00 ^ 0.00 0.00 0.00 Total ; 0.00 ' 0.00 1 0.00 0.00 0.00 Investment 187.72 201.40 205.39 370.66 403.25 ADCCB 1 SCB 0.00 0.00 0.00 0.00 0.00 Govt & Other 250.00 250.00 250.00 250.00 250.00 Debentures Others 0.20 0.20 0.20 0.20 0.20 Total 437.92 451.60 455.59 620.86 653.25 Over dues 15.56 13.79 11.68 13.18 10.40 Audit Class BA AAA Net Profit 7.08 14.25 10.83 13.09 17.95 Employees 18 17 15 14 14 Dividend 10% 12% 10% 12% 12% No. of Branches 2 2 2 2 2 Working capital 1119.38 13201.72 1331.9 1529.59 1776.31

(Source: Annual Reports of The bank)

184 14. The Ahmednagar Merchants’ Co-onei ative Bank Ltd., Ahmednagar ■ The Foundation: The Ahmednagar Merchants’ Co-operative Bank Ltd. was established on October 1972 and Bank has got banking license from RBI on 26"^ March 1973. ■ The Promoter: Shri. Hastimalji Munot worked as chief prompter of the bank. ■ The area of operation: The area of this bank at the beginning was just Nagar taluka. Then it is increased for Pune, Nashik, Aurangabad, Sholapur districts. ■ Membership: On 3T' March 2009 regular members were 5803 and nominal members were 5386. The Board of Directors: hiitially the number of directors in the board was eleven. At present, the number of directors is reached up to eighteen. The composition of board is follows;

Table No. 6.40 Board of Directors of The Ahmednagar Merchants’ Co-operative Bank Ltd. Sr. No Category No. of directors 1 General 09 2 SC 01

3 ST 01 1 i 1 4 OBC 01 5 Economically Weaker Section 01 6 Female 03 7 Staff Representative 02 Total 18

(Source: Annual Reports of the bank)

185 Premises; The head office and two branches are having own building and remaining four branches are on rental premises. Branches: This bank has seven branches; the details are as follows;

Table No. 6.41 Number of branches of The Ahmednagar Merchants’ Co-operative Bank Ltd. Sr. No. Place of the Branch Sr. No. Place of Branch Head Office and Chitale road Main Branch, Dalmandai 2 . Market Yard 6. MIDC Ahmednagar Kapad Bazar 7 Jamkhed 4. Gulmohar Road (Source: Annual Reports of the bank) Special Features; 1. This is the first bank in the district which is fully computerized. 2. This Bank offers housing loans and educational loans to the customers. 3. Bank has a facility of issuing demand drafts at big cities within the country. 4. All branches of the bank are computerized. Five branches are having optical fiber line, MIDC branch has wireless modem and Jamkhed branch with lease line. Due to this, customer can avail banking services from any of the branches. 5. D-Mat facility is available with bank. 6. Bank has started insurance business with the collaboration with the ICICI Lombard. 7. Bank has started Stamp Franking facility.

186 Table No. 6.42 Progress at glance of Ahmednagar Merchants’ Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 5388 5472 5561 5662 5803 Members Nominal 12507 8677 15595 14960 15386 Capital Authorized 500 500 500 500 500 Paid Up Capital 290.21 307.18 349.88 385.28 495.03 Reserve Fund 2962.50 3158.66 3440.10 3564.90 3854.80 Deposits Current 938.73 1351.56 2014.98 2015.21 1958.42 Savings 2798.62 3353.76 3676.77 4030.82 4387.72 Fixed 18146.77 18171.04 21975.82 25532.73 31069.45 Total 21884.12 22876.36 27667.57 31578.76 37415.59 Loans-Given- 14782.82 15885.16 22700.65 23087.49 24507.10 Secured Non Secured 157.68 160.43 147.97 158.17 166.06 Total 14940.50 16045.59 22848.62 23245.66 24673.16 Loans Taken 201.09 200.05 200.00 401.33 701.15 ADCC Bank Others ■ 1750.00 500.00 0.00 0.00 0.00 Total 1951.09 700.05 200.00 401.33 701.15 Investment 0.00 0.00 0.00 0.00 0.00 ADCCB se e 0.00 o.oTr 0.00_1j 0.00 1 0.00 Go\'t & Other 0.00 ' ()/)0 0.00 0.00 1 0.00 Debentures Others 9451.59 9350.70 8350.70 11642.02 6975.70 Total 9451.59 9350.70 8350.70 11642.02 6975.70 Over dues 7.50 7.70 6.53 5.64 5.04 Audit Class AA A AA Net Profit 102.71 213.76 239.35 501.06 549.47 Employees 111 110 110 111 110 Dividend 12 12 12 12 12 No. of Branches 7 7 7 7 7 Working capital 27742.82 27815.36 32466.59 37548.62 44127.78 (Source: Annual Reports of the bank)

87 15. The Rahuri People’s Co-operative Bank Ltd., Rahuri. ■ The Foundation; The Rahuri People's Co-operative Bank Ltd. was established on 21"‘ March 1960 and banking license was obtained on 6“’ October 1987. ■ The Promoter: Shri Govardhandasji Shankarlal Bihani, a lawyer, established this bank. ■ The area of operation: The area of this bank at the beginning was just Rahuri taluka. Then it is increased for Ahmednagar district. ■ Membership: On 31®' March 2009 the regular members were 5588 and nominal members were 422. ■ The Board of Directors: Initially the number of directors in the board was eleven. At present, the number of directors is reached up to eighteen. The composition of board is follows;

Table No. 6.43 Board of Directors of The Rahuri People’s Co-operative Bank Ltd.

Sr. No Category No. of directors 1 General- including one expert 10 director 2 SC 01 3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Female 02 7 Staff Representative 02 Total 18 (Source: Annual Reports of the bank)

188 ■ Premises: The head office and main branch is having own building and remaining two branches are on rental premises. ■ Branches; This bank has 3 branches; the details are as follows;

Table No. 6.44

Number of branches of The Rahuri People’s Co-operative Bank Ltd.

Sr. No. Place of the Branch

1 Head Office and Main Branch, Rahuri

2 . Devlali Pravara ( Rahuri factory) 3 Vambori (Source: Annual Reports of the bank)

Special Functions and Activities: 1. Bank gives 1% rebate to the regular members who pay regular installments of their loans.

189 Table No. 6.45

Progress at glance of The Rahuri People's Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 5433 5443 5431 5578 5588 Members Nominal 2170 1318 707 1019 422 Capital Authorized 300 300 300 300 300 Paid Up Capital 219.90 222.44 223.50 230.51 232.57 Reserve Fund 478.98 538.44 755.73 769.29 720.55 Deposits Current 79.83 26.02 30.43 34.80 9.53 Savings 401.75 408.41 297.78 310.70 245.31 Fixed 4446.38 3744.53 3013.64 2529.79 1881.48 Total 4927.96 4178.96 3341.85 2875.29 2136.32 Loans-Given- 3334.39 3147.30 2381.62 2037.86 1725.50 1 1 Secured 1 Non Secured 222.07 20.30 138.08 117.34 79.12 Total 3556.46 3167.60 2519.70 2155.20 1804.62 Loans Taken 310.09 149.42 199.13 74,19 27.68 ADCC Bank

Others/MSC 0 . 0 0 0 . 0 0 0 . 0 0 244.00 223.45 Total 310.09 149.42 199.13 318.19 251.13 Investment 602.54 347.68 154.03 191.05 65.82 ADCCB SCB 2.50 2.50 2.50 2.50 2.50

Govt & Other 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0

1 Debentures 1 Others 1T69.8T 1070.05 772.45 722,42 472.42 Total 1774.84 1420.23 928.98 915.97 540.74 Over dues 29.40 40.35 71.26 68.50 69.86 Audit Class B CC D D Net Loss 135.13 1 11.37 346.19 98.85 60.55 Employees 40 40 40 37 37

Dividend 0 % 0 % 0 % 0 % 0 % No. of Branches 3 3 3 3 3 Working capital 6630.31 5975.2 5343.8 4269.37 3444 (Source: Annual Reports of the bank)

190 16. Pravara Co-OBel“atlye Baak Ltd. (Scheduled BaEk) Loiii. ® The Foundation: The Pravara Co-operative Bank was established on 11* December 1974 and the bank has got banking license from RBI on 7* May 1975. ® The Promoter: Shri. Elmathrao Vitthalrao Alias Balasaheb Vikhe Fatil, Ex-Union Minister, established this co-operative bank at Lord. ■ The area of operation: At the beginning, the area of operation of the bank was Ahmednagar district. At present, this area is increased up to four districts viz. Ahmednagar, Pune, Nashik and Aurangabad. ■ Membership: The number of regular members on 31 ^ March 2009 was 8822 and nominal membership was 3654. ' s Board of Directors: Initially the number of directors was thirteen. Due to the increase in the area and directives of RBI, this number is increased up to twenty-five. Every section of the community gets representation in the board; the details are as follows; Table No. 6.46 Board of Directors of Pravara Co-operative Bank Ltd. Sr. No Category No. of directors 1 General- including one 16 prof, director

2 SC . . ■ 0 1 3 ST 01

4 OBC 0 1

5 Economically Weaker Section 0 1

6 Female 03

7 Staff Representative 0 2 Total 25 (Source: Annual Reports of the bank)

191 Premises : This bank has its own buiiding for head office and Loni branch at Loni Bk. Tal. Rahata. Bank has its own building for eight extension counters. Some branches and remaining extension counters are on rental premises. Branches : This bank operates at twenty five places including its head office, fourteen branches and ten extension counters. The details of branches are as follows;

Table No. 6.47

Number of branches of Pravara Co-operative Bank Ltd. Sr. No. Place of the Branch Sr. No. Place of the Branch

1 Head office 9 Shrirampur

2 . Pravaranagar 1 0 Shirdi

3 Songaon 1 1 Rahata

4 Ashvi Kd 1 2 Ashvi Bk 5 Kolhar Bk 13 Babhaleshwar

6 Loni Bk 14 Viladghat 7 Dadh Bk 15 Shevgaon

8 Ahmednagar (Source: Annual Reports of the bank)

Special Features: 1. Bank offers housing and educational loans to the customers. 2. Bank has a facility of issuing demand drafts at big cities within the country. 3. Bank has appointed pigmy agents for collecting daily deposits.

192 Table No. 6.48 Progress at glance of Pravara Co-operative Bank Ltd, (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 7998 8202 8261 8581 8822 Members Nominal 6822 8547 4179 3936 3654 Capital Authorized 100 ^ 100 500 500 500 Paid Up Capital 38.56 98.78 157.88 224.67 224.67 Reserve Fund 2716.21 1951,09 1917.55 2000.46 2000.46

Deposits Current 635.88 1 0 1 1 . 8 6 926.08 1349.92 1246.16 Savings 2271.04 2912.13 3037.47 3733.91 4489.79 Fixed 13175.38 13291.22 13004.10 14986.57 17099.13 Total 16082.30 17215.21 16967.65 20070.40 22835.08 Loans-Given- 10785.83 11089.32 11097.25 12072.40 12936.05 Secured Non Secured 171.75 276.68 30621.00 350.16 609.47 Total 10957.58 11366.00 41718.25 12422.56 13545.52

Loans Taken 0.00 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 ADCC Bank

Others 0.00 . 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0

Total 0.00 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 Investment 4.00 4.00 4.00 4.00 4.00 ADCCB

SCB, 0.02 0 . 0 2 0 . 0 2 0 . 0 2 0 . 0 2 Govt & Other 4918.03 • 4642.32 4612.68 4565.45 4972.26 Debentures Others 810.35 1427.74 1060.35 3074.61 4576.73 Total 5732.40 6074.08 5677.05 7644.08 9553,01 Over dues 8.58 8.89 8.92 8.71 7.85 Audit Class B. A A AA Net Profit 20.83 22.58 26.71 23.11 40.78 Employees 183 182 182 181 179

Dividend 1 0 % 1 0 % 8 % 8 % 8 % No. of Branches 15 15 15 15 15

No. Ext. Count. 10. 1 0 1 0 1 0 - 1 0 Working capital 19289.48 20798.35 20441.69 22996.73 26089.81 (Source: Annual Reports of the bank)

193 17. Ahmedaagar Shahar Sahaksri Baak Ltd.. Ahmedaagar ® The Foundation: Ahmednagar Shahar Sahakari Bank Ltd. was established on April 1971. and Bank has got banking license from RBI on-21^ May 1971 ® The Promoter Shri, Vivek Ganesh Dadhe, renowned Chartered Accountatant, established this bank. ® The area of operation: The area of this bank at the beginning was just Nagar talulca. Then it is increased for Ahmednagar, Pune, Nashik, Aurangabad, Sholapur,Jalana Thane, Beed districts, ® Membership: On 31®* March 2009 the number of regular members was 21874 and nominal members were 3613. ® The Board of Directors: Initially the number of directors in the board was eleven. At present, the number of directors is reached up to nineteen. The composition of board is follows;

Table No. 6.49 Board of Directors of Ahmednagar Shahar Sahakari Bank Ltd.

Sr. No Category No. of directors 1 General 11 2 SC 01

3 ST 01 4 OBC 01 5 Economically Weaker Section 01 6 Female 02 7 §taff Representative 02 Total 19 (Source: Annual Reports of the bank)

194 ■ Premises: The head office and main branch at Navi peth, are having own building and remaining branches are on rental premises. ■ Branches: This bank has 10 branches; the details are as follows;

Table No. 6.50

Number of branches of Ahmednagar Shahar Sahakari Bank Ltd.

Sr. No. Place of the Branch Sr. No. Place of the Branch

1 Head Office and 6 . Gulmohar Road Main Branch, Navi Peth i _ Savedi 7 MI DC

3 Maliwada 8 Sakkar Chowk 4. Zendi Gate 9 Manmad Road

5 Market Yard 1 0 Supa MIDC

(Source: Annual Reports of the bank)

195 Table No.6.51

Progress at glance of Ahmednagar Shahar Sahakari Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 21504 21542 21558 21723 21874 Members Nominal 4275 4299 4308 4338 3613

Capital Authorized 500 500 ^ 50 o’” 500 < 1 0 0 0 i Paid Up Capital 390.12 427.44 462.82 500.66 679.12 Reserve Fund 1756.95 1888.78 2002.40 2076.16 2304.98 Deposits Current 675.09 894.11 847.64 907.93 994.17 Savings 2651.48 3038.55 3338.46 3779.10 4238.47 Fixed 8576.49 8604.80 9992.95 11219.68 13172.79 Total 11903.06 12537.46 14179.05 15906.71 18405.43 Loans-Given- 5768.20 6819.06 8786.02 10133.58 10943.45 Secured Non Secured 340.13 289.45 239.13 229.31 147.47 Total 6108.33 7108.51 9025.15 10362.89 11090.92

Loans Taken 126.45 0 . 0 0 51.33 124.24 301.04 ADCC Bank

Others 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0

0 . 0 0 Total 0 . 0 0 1 51.33 124.24 301.04 Investment 3413.19 3155.43 1737.55 2796.49 5176.23 ADCCB

SCB 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 Govt & Other 3537.08 3839.58 3828.20 3816.82 4164.73 Debentures

Others(Mutual 0 . 0 0 15.00 30.00 15.00 15.00 Fund) Total 6950.27 7010.01 5595.75 6628.31 9355.96

Over dues 0.00 0.00 0.00 0 . 0 0 0 . 0 0 Audit Class AA AA A Net Profit 63.46 103.00 102.56 109.71 137.05

Employees 108 123 1 19 126 119

Dividend 1 0 % 1 0 % 1 2 % 1 5% 15%

No. of Branches 1 0 1 0 1 0 1 0 1 0 Working capital 14482.82 15230.96 17212.19 19014.91 2 2 2 0 1 . 2 1 (Source: Annual Reports of the bank)

196 ® Awards: This bank has got three state level awards for its excellence working. 1. First Prize for Annual report: By Rashtriya Sahakarita Vikas tatha Gramin Prabandhan Sanstha, Vardha. 2. First Prize for Annul report: By Sahakar SammdM, Nagpur 3. Second Prize for More deposits given by the Maharashtra Urban Co-operative Banks Federation Ltd. Mumbai.

® Special Features: 1. Bank offers housing loans to the customers. 2. Bank has a facility of issuing demand drafts at big cities within the country. 3. The educational loans are available for the members. 4. All branches of the bank are computerized with on line transaction facility. 5. With the support of Shamrao Vitthal Co-operative Bank Ltd., this bank has started core banking.

6 . This bank is the first co-operative bank in Ahmednagar dsitrict, which has got permission to start ATM. 7. ‘Any Branch banking’ facility is also available with this bank.

8 . Bank has started ATM India card- under ‘BANCS’ system, under which customers can use 5000 ATM centers throughout the country. It is known as ‘Shahar Bank India Card’. 9. Bank has also started RTGS, NEFT and e-payment services. 10.Pigmy Agents are appointed for collecting daily deposits. 11.Bank has started Stamp Franking facility.

197 18. AhmedHasar District Primary Teachers Co-Op. Bank Ltd.» AhmedMagar ® The Foundation: Ahmednagar District Primary Teachers Co-operative Bank Ltd., Ahmednagar was established as “Ahmednagar Zilha Local Board Primary Teachers Co-operative Credit Society Ltd.,” on 20* September 1919. ® Change' in Name: Ahmednagar District Primary Teachers Co­ operative Bank Ltd., Ahmednagar was converted into ‘Ahmednagar District Primary Teachers Co-operative Bank Ltd./ Ahmednagar on 14"^ M y 1969. ® The Promoters: Many primary teachers had taken great efforts to start this bank. Shri. Chintaman Keshav Valimbe was the chief promoter of the bank and he was actively supported by Shri D K Ralebhat, Shri Subhash Khobare, Shri R Y Auti, Shri, B K Karpe, and Shri B R Jadhav. ® Membership: By nature this bank is a salary earners’ co-operative bank, the primary teachers of Ahmednagar Zilha Parishad are the members of this bank. These teachers get regular membership. Some other persons also get membership for availing loan facility under nominal membership. The number of regular and nominal members on 31®^ March 2009 was 9582 and 2588 respectively. ® The Board o f Directors: At the beginning, the bank was credit society and there were eleven directors. At present, this number is 24 including one representative of ADCC Bank Ltd. The composition of the board is as fallows;

198 ■ Table Mo. 6.52 Board of Blrectors of Ahmediiagar District Priniary Teachers Co-operatiYe Baak Ltd.

Sr. No Category No. of directors 1 General 16 2 ■ SC 01

3 ST ,01 4 OBC 01

5 Economically Weaker Section 00 6 Female 02

7 Staff Representative 02

8 ADCC Bank Representative 01

Total 24 (Source: Annual Reports of the bank)

® Premises: This bank has spacious building for its head office and Ahmednagar branch at Aikya Mandir, Anandi Bazar, Ahmednagar. This bank has fourteen branches, out of which nine branches are located at owned building and remaining at rental premises. ® Branches: This bank has fourteen branches located at each taluka of the district, the details is. as follows; .

199 Table No. 6.53 Number of branches of Ahmedaagar Distriet Primary Teachers Co-operative Bank Ltd. Sr. Place of the Branch Sr. No. Place of the Branch No.

1 Head Office and Main 8 Pathardi Branch, Ahmednagar

2. Sangamner . 9 Rahuri 3 Nagar 10 Shevgaon 4. Famer 11 Shrigonda 5 Kopargaon 12 Akole 6. Shrirampur 13 Karj at

7 Jamlched 14 Newasa (Source; Annual Reports of the bank)

Speekl fEBctioB aad actmties; 1. The suggestion box is provided at all branches. 2. Bank has implemented ‘Accident Insurance Scheme’ of Rs. 100000/- for members. 3. An award in the name of Late Mr. Dadasaheb Donde Paritoshik’ for the members’ children. 4. From the ‘Members Welfare Fund’ members are financially helped in emergencies. 5. Mayat Sabhasad Karj Nivaran Nidhi is a special fond created by the bank from the contribution of members. The outstanding loan of deceased members is settled from this fund. 6. The' Employees Welfare Fund is created by the bank from the net profit of the year and from this financial help is given to the

employees. 200 Table No. 6.54 Progress at glance of Ahmednagar District Primary Teachers Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 9811 9778 9528 9437 9582

Members Nominal 2019 19 LS 2189 2 2 0 2 2588

Capital Authorized 1 2 0 0 1 2 0 0 1 2 0 0 1 1 2 0 0 1 2 0 0 Paid Up Capital 902.71 935.76 968.63 1071.19 1110.07 Reserve Fund 1019.72 1146.93 1254.40 1366.07 1198.32 Deposits Current 870.91 890.97 895.90 838.97 841.97 Savings 1747.25 2096.17 2084.87 1928.43 2516.34 Fixed 9995.31 9987.19 10645.32 12427.55 14999.64 Total 12613.47 12974.33 13626.09 15194.95 18357.95 Loans-Given- 389.06 398.25 470.76 523.33 937.92 Secured Non Secured 10433.42 10972.52 12091.95 14035.85 14212.08 Total 10822.48 11370.77 12562.71 14559.18 15150.00

Loans Taken 0 . 0 0 661.03 876.73 1 557.44 0 . 0 0 ADCC Bank 1 Others 0 . 0 0 0.00 0.00 0.00 0.00

Total 0 . 0 0 661.03 876.73 1557.44 0 . 0 0 Investment 1339.52 1338.21 1425.02 1582.04 2262.16 ADCCB s e e 0.91 0.91 0.91 0.91 0.91 Govt & Other 2083.07 2154.79 2329.66 2666..76 2769.99 Debentures Others 1.00 0.10 0.10 0.10 0.10 Total 3424.50 3494.01 3755.69 1583.05 5033.16 Over dues 0.08 0.08 0.06 0.06 0.25 Audit Class AA A AA Net Profit 163.03 38.73 40.59 54.89 85.30 Employees 156 155 155 153 149 Dividend 14% 14% 3% 3% 3.25% No. of Branches 14 14 14 14 14 Working Capital 14983.78 15989.6 17106.37 19667.51 21185.5 (Source; Annua! Reports oftlie bank)

201 19. Shri. Swami Sainarth Co-onerative Bank Ltd., Nighoj, Tal. Parner. ■ The Foundation; Shri. Svvanii Samarth Co-operative Bank Ltd. was established on 18'*’ September 1997 and Bank has got banking license from RBI on 14“^ July 1998. ■ The Promoter: Adv. Shri. Ashok Bhikaji Shelke established this bank. ■ Area of Operation; Initially the area of operation of the bank was limited to Pamer taluka only. At present, this area is increased up to six districts viz. Ahmednagar, Pune, Nashik, Aurangabad, Thane and Beed. ■ Membership; At the beginning, the number of members was 1389. On 3L' March 2009 there were 3526 regular members and 445 nominal members. ■ The Board of Directors; The number of directors in the board is 19, which includes two professional directors. The composition is as follows;

Table No.6.55

Board of Directors of Shri Swami Samarth Co-operative Bank Ltd.

Sr. No Category No. of directors

1 General including two expert directors 13

2 SC 0 1

3 ST 0 1

4 OBC 0 1

5 Economically Weaker Section 0 1

6 Female 0 2 Total 19

(Source; Annual Reports of the bank)

2 0 2 Premises: This bank’s head office and all two branches are located at rental premises. Branches: This bank has three branches located within Parner taluka, the details is as follows;

Table No.6.56

Number of branches of Shri Swami Samarth

Co-operative Bank Ltd

Sr. No. Place of the Branch

1 Head Office and Main Branch, Nighoj

2 . Takali Dhokeshwar 3 Alkuti

(Source: Annual Reports of the bank)

■ Special functions and activities;

1 .1 % rebate for regular repayment of loan installments. 2. Housing loans are available.

203 Table No. 6.57 Progress at glance of Shri Swami Samarth Co-operative Bank Ltd. (Rs. in Lakhs) Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 3042 3082 3178 3286 3526 Members Nominal 499 499 464 568 445

Capital Authorized 50.00 1 0 0 . 0 0 1 0 0 . 0 0 1 0 0 . 0 0 1 0 0 . 0 0

Paid Up Capital 46.96 51.63 58.41 6 8 . 8 6 77.30 Reserve Fund 98.69 141.22 165.93 195.21 234.69 Deposits Current 50.93 81.37 78.48 211.03 197.64 Savings 151.26 176.84 1 236.30 276.77 354.24 Fixed 1017.22 1087.88 1 178.83 1274.91 1504.12 Total 1219.41 1346.09 1493.61 1762.71 2056.00 Loans-Given- 659.80 70L96 861.27 1084.47 1129.81 Secured Non Secured 18.04 24.90 24.93 27.74 25.91

Total 677.84 726.86 8 8 6 . 2 0 1 1 1 2 . 2 1 1155.72

Loans Taken 0 . 0 0 0 . 0 0 0.00 0.00 0.00 ADCC Bank

Others 0 . 0 0 0 . 0 0 0.00 0.00 0.00

Total 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 Investment 247.01 361.22 394.30 410.21 715.78 ADCCB 1

SCB 0 . 0 1 0 . 0 1 0 . 0 1 0 . 0 1 0 . 0 1 Govt & Other 379.77 379.14 378.50 377.32 376.09 Debentures

Others 25.00 27.00 0 . 0 0 50.00 25.91 Total 651.79 767.37 772.81 837.54 1117.79 Over dues 3.05 5.96 5.97 6.95 8.50 Audit Class A AAAA Net Profit 24.23 16.37 13.33 15.15 15.27

Employees 18 18 2 0 2 0 2 2

Dividend 1 2 % 1 2 % 1 2 % 1 2 % 1 2 % No. of Branches 3 3 3 3 3 Working capital 1425.23 1593.16 1787.49 2127.39 2502.97 (Source: Annual Reports of the ban <)

204 20. Parner Taluka Sainik Co-operative Bank Ltd., Parner ■ The foundation; The Parner Taluka Sainik Co-operative Bank Ltd. was established on 9"' Januar\' 1995. ■ The Promoter: The renowned social worker and ex-serviceman, Padmabhushan Shri. Kisan Baburao Alias Annasaheb Hajare established Parner Taluka Sainik Co-operative Bank Ltd. ■ The area of operation: Initially the area of operation of the bank was limited to the Parner taluka. At present the area is increased to the seven districts, they are Ahmednagar, Pune, Nashik, Beed, Aurangabad, Thane and Sholapur. ■ Membership: Initially the number of the members was 6333. On 31^’ March 2009 this number is increased up to 8191. This bank accepts nominal membership for availing the loan facility from the bank. This number was 1611. ■ The Board of Directors: From the beginning, the number of directors in the board is fifteen. The composition is as follows.

Table No. 6.58

Board of Directors of Parner Taluka Sainik Co-operative Bank Ltd. Sr. No Category No. of directors

1 General including two expert directors 09

2 SC 0 1

3 ST 0 1

iOBC ^ ^ ^ ^ ! 0 1

5 Economically Weaker Section 0 1

6 Female 0 2 Total 15 (Source: Annual Reports of the bank)

205 1. Premises / Branches: The head office and all branches are located at rental premises. The bank has purchased a plot for the own building. The details of branches are as follows;

Table No. 6.59

Parner Tahika Sainik Co-operative Bank Ltd.

Sr. No. Place of the Branch Sr. No. Place of the Branch

1 Head Office and 3 Jamkhed Main Branch, Pamer

2 . Shrigonda 4. Karjat (Source: Annual Reports of the bank)

2. Special functions and activities: 1. Bank has a facility of issuing drafts at big cities within the country, for this arrangement is made with the HDFC Bank. 2. Bank has Business hours on Sunday at head office.

206 Table No.6.60

Progress at glance of Parner Taluka Sainik Co-operative Bank Ltd. (Rs. in Lakhs)

Details / Year 2004-05 2005-06 2006-07 2007-08 2008-09 Members General 7737 7826 7896 8066 8191 Members Nominal 412 414 695 631 1611

Capital Authorized 1 0 0 . 0 0 100.00 100.00 100.00 100.00 Paid Up 47.38 5 1.34 57.52 62.76 73.15 Reserve Fund 134.49 1456.69 174.28 194.63 198.73

Deposits Current 2 2 . 6 8 28.64 45.10 63.77 54.23 Savings 135.87 153.39 363.16 321.00 393.13 Fixed 1404.66 1401.21 1356.80 1318.30 1401.59

Total 0 . 0 0 1583.24 1765.06 1703.07 1848.95 Loans-Given-Secured 933.75 954.97 1011.34 981.74 1144.67 Non Secured 112.36 112.81 96.64 84.22 72.82 Total 1046.11 1067.78 1107.98 1065.96 1217.49

Loans Taken ADCC 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0

Bank !

0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 Others 1

Total 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0

Investment ADCCB 0 . 0 0 0.00 0.00 0.00 0.00 see 0 . 0 1 0 . 0 1 0 . 0 1 0 . 0 1 0 . 0 1 Govt & Other 153.87 153.87 153.87 155.00 155.00 Debentures Others 364.16 316.56 258.58 372.29 392.64 Total 518.04 470.44 412.46 527.30 547.65 Over dues 17.64 30.31 30.63 35.85 30.99 Audit Class D D DD B Net Profit -115.12 -187.42 -202.61 -199.83 -156.44 Employees 29 30 28 30 23

Dividend 0 % 0 % 0 % 0 % 0 % No. of Branches 4 4 4 4 4 Working capital 1770.94 1801.39 1857.15 2026.6 2220.26 (Source; Annual Reports of the bank)

207 ® Reference; 1. Gazetteer of Maharashtra 2. ^n iiai reports of all urban co-operative banks from 2004-05 to 2008-09. ■

208