Question 1

What is Cooperative Credit Societies meaning

Accepted Answer

Cooperative Credit Societies are financial entities or institutions established on a cooperative basis. Cooperative credit society is a group of individuals coming together to promote economic welfare and to promote the requirement of self sufficiency in the society. Customers of a cooperative society are also its owners who get financial support too. Such societies are formed with an objective of offering credit facilities to their members at a reasonable rate of interest. These societies offer a wide range of regular banking and financial services to their members only. They are different from regular commercial banks in the fact that their services are limited and they usually operate on a local scale as opposed to the national level operations of banks.
The primary role played by the credit cooperative society is that it safeguards the rights of producers and consumers in rural areas. The society's aim is to promote self-help, thrift and mutual aid among their members, especially in the marginalized and underserved sectors of society. The concept of co-operative societies in India is quite old. The first such organization was Agricultural Credit Cooperative society of Kanaginahal village of Gadag district in Karnataka. The first Cooperative Law of India The Cooperative Credit Societies Act was passed in March 1904. At present, there are approximately 8 lakh cooperative societies in India, mostly operating in the agricultural, banking and housing sectors.

Question 2

Types of Co-operative Credit Societies

Accepted Answer

Following are a few of the co-operative societies. They are producer cooperative, which is to protect the interest of small producers. Consumer cooperatives, credit unions, marketing cooperative society and housing cooperative society. There are also agricultural credit societies, non agricultural credit societies, urban credit societies, rural credit societies other than consumer credit societies. Each type of this society has been formed with a specific reason to focus and serve a specific group of people.

Question 3

What is the purpose of credit co-operative society?

Accepted Answer

A credit co-operative society provides financial services to their members. It includes credit services, savings provisions and other financial products and services. This society aims to promote financial inclusion, economic and social development other than self help among their members.

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