This document discusses reforms to rural credit cooperatives in India that were initiated in 2004 in response to numerous problems plaguing the cooperatives. It provides background on the evolution and structure of rural credit cooperatives in India. The key reforms included amending cooperative laws to reduce government interference, bring cooperatives under banking regulation, and provide a one-time financial package to strengthen cooperatives. The financial package was conditional on legal and institutional reforms and aimed to clean balance sheets, strengthen capital bases, and increase recovery rates of primary agricultural credit societies. Implementation of the reforms package has made progress with states signing agreements and cooperatives adopting accounting standards and management information systems.
This document summarizes the role of non-governmental organizations (NGOs) in rural credit markets and community development in India. It outlines that NGO-microfinance institutions (MFIs) can help address loopholes in rural credit by reaching remote communities and empowering the poor. While NGO-MFIs have grown and contributed to sectors like microenterprise, issues remain around recovery rates, regulations, and linking communities to markets. The document concludes that NGOs understand local needs and can empower communities through programs and functions to promote sustainable development.
“Financial Inclusion in SHG-bank Linkage Model under SGSY with special refere...iosrjce
Financial Inclusion is a very big challenge to banking sector. Till now most of the banking facilities
are not reaching to deprive. Micro financing through SHGs is a vital weapon for poverty eradication. But due to
lack of uniformity it is not complete its target efficiently. In this paper try to focus on the financial inclusion in
SHGs-Bank Linkage Programme under SGSY scheme in Jhansi district. SBLP is the banking link with poors to
uplift their socio-economoc, health, nutrition, insurance, saving, education aspects. It is an attempt to clarify
how much this programme reach to beneficiaries of SHGs.
The present study differs from previous studies as it is focused its basic cause for reduction in quality numbers
of SHGs come out after complete all stages. Further, this paper tries to access the grass root issues relating to
SHGs and the normal course in decrease the number of SHGs at last stage in the study area. The study is
undertaken in four development blocks of jhansi Districts of Uttar Pradesh during 2009-13. It is observed that
due to fast growing of the SHG-bank linkage programme, quality credit linked SHG has not cover all stages of
the programme.. Some of the factors affecting the decline of SHGs are the target oriented approach of the
government in preparing group, inadequate incentive to NGO’s for nurturing their groups etc.
Corporate covernance as a tool for curbing bank distress inAlexander Decker
This document summarizes a research journal article about examining the role of corporate governance in curbing bank distress in Nigerian deposit money banks through empirical evidence. The article reviews literature on corporate governance and bank distress. It discusses how poor corporate governance contributed to failures in the Nigerian banking sector prior to reforms. The study aims to determine if there is a relationship between good corporate governance and preventing bank distress as well as improving bank performance. It uses statistical analysis of survey data to test these hypotheses. The findings show that while corporate governance did not significantly improve prevention of bank distress, it significantly improved Nigerian bank sector performance.
This document summarizes the role of banks in providing microfinance in India. It discusses how microfinance helps low-income groups and self-employed individuals by providing small loans and other financial services. Over 7 million self-help groups are connected to banks in India, saving over Rs. 701630.28 lakhs. Commercial banks disbursed the most loans to self-help groups, but cooperative banks need to improve their microfinance performance. While microfinance has helped reduce poverty, banks must continue expanding access to credit and work to lower default rates in order to maximize microfinance's benefits.
Sustainability of Microfinance: A Case of Tea SACCOs in Kericho, Buret and Bo...World-Academic Journal
Tea SACCOs are tea based rural SACCOs formed by tea growers, whose functions are to keep member’s savings in form of shares, savings accounts and deposit accounts among others. Little is known about the factors influencing financial sustainability of Tea SACCOs. The study covered all six Tea SACCOs in Kericho, Bomet and Buret districts in the Rift valley province of Kenya. Analysis involved evaluating growth in net worth, administrative efficiency, loan portfolio quality, staff productivity and transaction costs. The study found that the growth of net assets had been on the decline over the years, loan portfolio was poor and default rates were high. According to the indicators evaluated, Tea SACCOs had not yet reached their full potential in outreach and that high transaction costs hindered their financial sustainability.
Microfinance provides loans, savings, and other financial services to poor individuals. It originated in the 1970s in Bangladesh and combines strengths of formal and informal credit systems. NGOs and organizations like NABARD, RMK, and SIDBI regulate microfinance institutions (MFIs) in India and provide funding. MFIs aim to improve lives of poor through financial access and self-employment opportunities. Self-help groups (SHGs) are important for microfinance, allowing members to save, take loans, and start businesses.
Factors affecting financial sustainability of microfinance institutionsAlexander Decker
This document discusses factors that affect the financial sustainability of microfinance institutions (MFIs). It begins with background on microfinance programs and defines financial sustainability. The study aims to identify factors influencing MFI financial sustainability and develop a financial sustainability index. Regression analysis of MFI data from India and Bangladesh found that capital/asset ratio, operating expenses/loan portfolio, and portfolio at risk >30 days influence sustainability. The document proposes a financial sustainability index model based on these factors and operational self-sufficiency, assigning weights based on various agencies' use of the indicators. The model converts indicator data to a common scale to calculate total standard scores as a sustainability index.
Microfinance and strategy of financial inclusion in indiaAlexander Decker
This document discusses microfinance and financial inclusion in India. It notes that while India has made progress in expanding access to banking, many rural and low-income populations still lack access to formal financial services. Microfinance institutions like self-help groups have played an important role in promoting financial inclusion. The document examines different approaches to financial inclusion in India, the role of banks and microfinance, and challenges remaining around expanding access in a sustainable way.
Microfinance provides financial services like savings, lending, and insurance to low-income individuals in a sustainable way. It gives access to capital for micro-entrepreneurs and small businesses who otherwise would not have access to formal financial services. There are two main models for delivering microfinance - the self-help group (SHG) model and the microfinance institution (MFI) model. SHGs are informal associations of 10-20 members who meet regularly, pool savings, and use rotating loans within the group. Success in microfinance is measured by both the depth and breadth of outreach to poor people as well as the lasting positive impact it has on their lives through financial inclusion and self-employment
Credit co-operatives are financial organizations owned and controlled by members who save money as a group. They provide financial services like loans, deposits, and insurance to low-income individuals. The document discusses the history and development of credit co-operatives in India, beginning with the Rochdale Pioneers in England in 1844. It outlines the objectives and workings of credit co-operatives in India, including their focus on the social and economic betterment of members. Examples are given of some large multi-state credit co-operative societies operating in India.
Cooperatives have historically played an important role in India, first being formally established in 1904 to help farmers and agricultural workers access credit. Cooperatives operate across many sectors but face various challenges due to differing state-level laws and implementation. Additionally, political changes have undermined some cooperatives' independence. However, cooperatives still have an important role to play in supporting communities and addressing issues caused by globalization through locally-based solutions and acting as advocates for citizens' interests in markets.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Indiamicrofinance.com I Guide To Success I Biswa MicrofinanceIndia Microfinance
http://www.indiamicrofinance.com/
A training Manual of Biswa Microfinance which provides an introduction about the organisation and a weekly planner for the company's employees.
Cooperative societies are autonomous associations that are voluntarily owned and controlled by their members to achieve mutual social, economic, and cultural benefits. They originated in India to help farmers pool resources for credit, procurement of supplies, and marketing of agricultural produce. Key principles include voluntary membership, democratic control by members, and concern for the community. While cooperatives provide benefits like promotion of savings and self-help, they face issues such as dormant membership, lack of participation in management, and political interference. Programs by organizations like NAFED and NCDC aim to support India's cooperative movement.
Credit Cooperatives Development Strategy through Partnership with Financial I...inventionjournals
This study aims to understand and construct partnership model between cooperatives and financial institutions in Papua Province. This research used a qualitative method design which utilizes phenomenological approach. The informants involved in this research are 8 informants who have a background as cooperatives management (caretakers) and employees of financial institutions. This result is the strategy of credit cooperative in Papua to arrange partnership with financial institution is based on mutual principle. Cooperative should improve its management to meet feasibility and bankability criteria, including (a) capital resource, legal aspect, and collateral which should be highly considered by the cooperative management and (b) human resource practice like good administrative affairs, good governance, and trust that must be the priorities to improve cooperative business. These matters can encourage financial institution to arrange partnership with cooperatives in Papua Province which then can make those cooperatives grow and develop.
The document summarizes microfinance as small loans provided to low-income individuals who lack access to traditional banking. It discusses the history and philosophy of microfinance, how it works through peer lending circles, and its growth centers globally. Key risks for microfinance investors include foreign exchange risk, difficulty assessing credit risk for many small borrowers, and potential volatility. The document also analyzes financial performance and growth metrics for microfinance institutions.
Indian coopertive movement and agriculturedearasthana
The document discusses the history and development of the cooperative movement in India over the past 100+ years. It began in 1904 with the Cooperative Credit Society Act to help farmers access credit without relying on money lenders charging high interest rates. Since then, cooperatives have expanded across agriculture, providing farmers credit, inputs, marketing, services, and supporting agro-industries like sugar and dairy. Today, India has over 500,000 cooperatives with over 200 million members, covering most villages and households. Cooperatives play a major role in the rural economy and agriculture sector.
Housing cooperatives provide affordable housing to members. They are formed by purchasing land and developing or constructing houses that are then allotted to members. There are different types including those where members own the houses but the land is held by the cooperative, and those where members have ownership in both the houses and land. Housing cooperatives are governed by cooperative laws and provide benefits like democratic control and elimination of middlemen profits for members.
The document summarizes the status of milk marketing and dairy cooperatives in India. It finds that 80% of milk produced in rural India is handled by the unorganized sector, while the remaining 20% is handled by the organized sector which includes government and cooperatives. Dairy cooperatives play a vital role in alleviating rural poverty by augmenting rural milk production and marketing. However, involvement of intermediaries, lack of bargaining power for producers, and lack of infrastructure constrain the prices received by producers. Future challenges for India's milk marketing include improving milk quality, product development, infrastructure, and global marketing.
Indu Bhushan Prasad presented on cooperative societies. A cooperative society is defined as a voluntary association of individuals formed to meet common economic, social, and cultural needs through jointly-owned and democratically controlled enterprises. At least 10 people can form a cooperative society under the Cooperative Societies Act of 1912 by submitting an application and bye-laws to the registrar. Cooperative societies take various forms including consumers', producers', marketing, credit, farming, and housing societies. They are governed democratically and provide services to members while generating some profit.
The document summarizes key aspects of the dairy industry in India. It notes that dairy is an important agricultural industry that relies on cows, buffalos, sheep and goats. It also lists India as the top milk producing country globally and highlights that 20% of worldwide milk production comes from India. The dairy industry is supported by various government organizations and ministries and makes an important contribution to India's culture and economy.
India is the world's largest milk producer due to several key strategies:
(1) Strong national policies support dairy farming and link the economy, agriculture, and rural development.
(2) India preserves indigenous cattle and buffalo breeds that are well-adapted to local conditions rather than relying on imported breeds.
(3) Cooperative management structures like AMUL collect, process and market milk at village, district and state levels, ensuring fair prices and quality standards.
Private management also works effectively with agents.
(4) Milk is processed into value-added products to reduce spoilage and access more markets.
(5) Popular brands and quality control allow cooperatives and companies to market products nationally
The document defines and describes cooperative societies. It notes that a cooperative society is a voluntary association of persons working together for common economic goals and mutual support. The key characteristics of cooperative societies are open membership, democratic governance, limited liability, and distribution of surplus funds to members. The document outlines different types of cooperative societies like consumer cooperatives, producer cooperatives, and agricultural cooperatives.
ANTHROPOLOGY OPTIONAL Crucial Role EKAMEkam Acadamy
ANTHROPOLOGY OPTIONAL
Crucial Role of Optionals:
In the UPSC mains examination, optionals, along with Essay and Ethics papers, act as the true "iron curtains." A strong performance in the optional subject significantly enhances the chances of securing a high rank. Recognizing this, Ekam IAS Academy has meticulously designed its Optional Course to provide the best learning experience for students. Faculties for Optional subjects are selected based on their academic excellence and UPSC performance in their respective subjects.
Anthropology as an Optimal Choice:
Anthropology stands out as one of the most favored optional subjects in UPSC. Its key advantages include a high scoring potential and the availability of excellent study material. A well-prepared candidate can expect a score above 350+, making it a unique optional.
Advantages of Anthropology: In a Nutshell:
Not very difficult to comprehend.
Easy to understand and scoring.
Popular with humanities students and accessible for science background students.
Supports essay and interview rounds, as well as the ethics paper.
Offers insights into society's layers and functioning.
This document provides an overview of cooperative banking in India, with a focus on its origins, structure, and primary agricultural credit societies (PACS). It notes that cooperative banking began in India over a century ago to encourage thrift and mutual assistance. The structure consists of a three-tier system of PACS, district cooperative banks (DCBs), and state cooperative banks. PACS are struggling with high overdues and non-repayment of loans. DCBs occupy the middle level, providing loans and services to affiliated PACS and societies. The progress of PACS and DCBs in Kerala is also reviewed.
— The study evaluates the efficiency of cooperative societies in credit delivery to agricultural enterprises in Yakurr Local Government Area, Cross River State. The specific objectives were to; describe the socioeconomic profile of cooperatives societies, identify the sources of finance that are available and utilize for credit by cooperative societies, analyze the efficiency of cooperatives using the arrival rate of loan request and the service rate and identify the challenges militating against cooperatives as a means of providing credit facilities to farmers in the study area. random sampling method was used to select 30 Cooperative Societies in the Local Government Area. Data were obtained using well structured questionnaire and were analyzed using descriptive statistics and queue theory. Results from the study showed that most of the cooperatives were formed in 2011 with 16-20 members at inception, which stood currently at 21-40 members. The benefits derived from the society ranges from, provision of input for production, accessibility of loan and marketing of products. The large proportion of the amount disbursed to member's ranges from 11000-31000naira. The result revealed that the sources of finance available to members was mainly from members contributions .The result further showed that cooperatives were not effective and efficient in queue management because the average idle time (-0.26) and the average traffic intensity was more than one (1.26). Also, findings showed that insufficient funds for disbursement(3.33), lack of qualified personnel (3.23), insincerity of members in credit management (3.16) and changes in government credit policies (3.16) were serious challenges that affected efficient delivery of credit by cooperative societies to agricultural enterprises in the study area, The study therefore recommended capacity building for cooperative members to enable them adequately source for funds and efficiently manage loan disbursement and repayment by members. Also, relevant government and nongovernmental financial institutions should be encouraged to channel credit facilities through cooperatives in other to build their financial base and make credit more accessible to agricultural enterprises.
The document discusses the state and cooperative movement in India. It provides background on cooperatives, defining them as autonomous associations that voluntarily cooperate for mutual social and economic benefits. It then outlines the evolution of the cooperative movement in India, from the early 20th century laws facilitating their formation to the current role they play in sectors like agriculture, dairy, finance and more. It notes that cooperatives now cover most of rural India and play an important role in development. The document also discusses cooperative laws, challenges cooperatives face, the need for long-range planning and policy making to guide cooperatives.
This document discusses corporate governance issues in microfinance institutions (MFIs) in India. It provides background on the growth of microfinancing in India since the 1930s. Key developments include the establishment of self-help groups and expansion of microfinancing through commercial banks and non-profits. However, recent rapid growth of MFIs in India has raised concerns about lack of oversight and corporate governance. The document examines corporate governance challenges facing MFIs and potential solutions to ensure the long-term sustainability and social goals of microfinancing.
A Strategic Perspective of the Indian Micro Finance Sector 2015Chandrasekhar Poduri
The document discusses the evolution of microfinance in India over the past century. It began as a means of providing credit to rural India through cooperative banking and social banking initiatives. Over time, self-help groups (SHGs) and microfinance institutions (MFIs) emerged as effective models for extending financial services to the poor. MFIs grew rapidly in the 2000s by transforming into non-banking financial companies (NBFCs) and accessing mainstream capital markets. However, over-aggressive lending practices by some MFIs in Andhra Pradesh led to a crisis in 2010. The microfinance sector in India continues to evolve through policy changes, industry self-regulation, and expanding access to financial services for under
Business Development Strategies in DCCB (Dr. Rajiv P. Kumar)Dr. Rajiv P. Kumar
This document provides an overview of business diversification strategies in cooperative banks in India. It begins with introducing cooperative banks and how they differ from commercial banks. It then discusses the history and role of cooperative banks in India. The document outlines some of the challenges faced by cooperative banks that have led them to pursue diversification strategies. It identifies reasons for cooperative banks to diversify their business and lists some of the advantages and disadvantages of diversification. Finally, it describes different types of business diversification strategies cooperative banks can pursue, including horizontal, vertical, concentric, and conglomerate diversification.
FINANCIAL INCLUSION A RETROSPECTIVE APPRAISALDr Lendy Spires
This chapter provides an overview of India's financial inclusion policies and programs implemented by the government and Reserve Bank of India over time. It analyzes the current state of financial inclusion in India from both demand and supply sides. While efforts have been made to enhance access through rural bank branches, self-help groups, and priority sector lending, a large unmet demand remains, especially among poorer populations. The chapter compares India's financial inclusion metrics to other countries and outlines the existing financial inclusion architecture and its limitations in fully addressing rural credit needs.
This document provides an overview of India's financial inclusion policies and achievements in a three chapter section. It begins with an introduction to the chapters which analyze financial inclusion from the demand and supply side perspectives. Several key points are made:
- Rural access to banking has decreased as branches have concentrated in metropolitan areas over time.
- Financial inclusion efforts aim to provide affordable financial services to vulnerable groups like low-income communities.
- India's level of financial exclusion is higher than many developed and emerging economies based on indicators like access to accounts and credit.
- The existing financial inclusion architecture in India includes nationalized banks, self help groups, and priority sector lending guidelines. However, rural dependence on informal credit remains high.
This document discusses the governance and management challenges facing the three-tier cooperative credit system in India. It provides historical context on the origins of cooperatives in India, noting they began in a top-down manner unlike in other parts of the world. This has resulted in issues like a lack of member participation and democratic processes. The document examines how conditions like poverty and illiteracy impact the effectiveness of cooperatives in rural India. It argues for reforms that ensure transparency, accountability, participation and predictability in governance to strengthen the cooperative system while maintaining their democratic structure.
Cooperative is one of the oldest and effective systems
in terms of development of human civilization. Cooperative
institutions are organized and managed on the principle of
cooperation, self-help and mutual help. There are different
types of cooperative institutions functioning in India. As far as
the institutional credit structure is concerned, cooperatives
play a significant role in this regard. Cooperative credit
institutions are spread all over India and are providing their
services at the grass root level. As main portion of the
population in India lives in rural areas so it is important to
strengthen the cooperative credit institutions in these areas.
The major advantage of the institutions is their strong branch
network which covers entire area of the country. This paper
attempts to study the Co-operative Banking in India. The
paper mainly focuses on the branch networking, capital,
advances, deposits, borrowing, loans issued and outstanding
performance of these banks in India. Basically we have studied
the growth and performance of Co-operative Banks in India.
The study is based on secondary data. The data required for
the study has been collected from RBI annual reports,
Journals, reports on trend and progress of banking in India,
Annual Reports of NAFSCOB etc.
1. The document analyzes the successful performance of several cooperative banks in India through their social orientation and loyalty to members. It provides examples of cooperative banks like SEWA Bank that have empowered women and the South Canara District Central Co-operative Bank that provides services like loans and insurance to farmers.
2. The cooperative banks discussed implement strategies like self-help groups and providing additional services to strengthen their cooperative identity and relationship to members. They also use customer service surveys and welfare funds to prioritize social goals and member needs alongside economic objectives.
3. Through social initiatives and prioritizing member loyalty, the analyzed cooperative banks have achieved business success while maintaining their cooperative principles.
1. The document discusses the role of Regional Rural Banks (RRBs) in providing credit to rural areas in India, specifically Jammu and Kashmir. RRBs were established to fulfill credit needs that commercial banks and cooperatives were not addressing.
2. It provides background on the rural credit system in India and need for institutional credit among farmers. RRBs aim to provide financial assistance to small and marginal farmers.
3. The document examines the progress of three RRBs operating in Jammu and Kashmir - Jammu Rural Bank, Kamraj Rural Bank, and Ellaquai Dehati Bank. It explores trends in RRB development and constraints they face like non-performing assets.
This document provides an overview of the Delhi State Co-operative Bank project completed by Neha (pks) for her BBA degree. It includes an acknowledgement of her project guide and bank manager for their assistance. The contents section outlines the 5 chapters of the project, which cover an introduction to the bank, research methodology, conceptual discussion, data analysis, and conclusions/suggestions. The introduction discusses the history and growth of cooperative banking in India, regulatory framework, and the bank's role in rural financing and economic development plans.
EMERGING TRENDS IN BANKING SECTOR – A COMPARATIVE STUDY FROM FINANCIAL INCLUS...IAEME Publication
Financial inclusion of the entire population is an important vehicle for development in a country The number of financially excluded people in a developing country like India is much higher than many developed countries in spite of the several initiatives taken by the Government of India for the rising middle class in the towns and villages investment in banking products is not a default choice. A preliminary investigation has been carried outin one such district in India pertaining to the banking products. The study is exploratory and analytical in nature. The main objective is to study the present scenario in banking.
The document is a report from the Sub-Committee of the Central Board of Directors of Reserve Bank of India that studied issues in the microfinance sector. Some key points:
1) It recommends creating a separate category of NBFCs called NBFC-MFIs to specifically regulate microfinance institutions.
2) It proposes a definition for NBFC-MFIs as non-banking companies that provide small, short-term, unsecured loans predominantly to low-income borrowers.
3) It suggests various regulations for NBFC-MFIs regarding loan size, duration, collateral, and restricting loans to income-generating activities in order to protect vulnerable borrowers.
This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services for vulnerable groups at affordable costs. It outlines various definitions of financial inclusion from organizations like ADB, UN, and the Rangarajan Committee. It discusses the historical perspective of financial inclusion in India since the 1950s. It notes that while access to financial services has increased, 100% inclusion has not been achieved. The document reviews several studies on topics like the level of inclusion in various Indian states and cities. It discusses the need for financial inclusion to promote equitable growth, poverty eradication, and sustainable livelihoods. Finally, it outlines the research methodology used in a case study on financial inclusion in an Indian village.
The Seventh Bharat Ratna Rajiv Gandhi Memorial Lecture was delivered by Dr. C. Rangarajan, the then Chairman of the Economic Advisory Council to the Prime Minister of India, on 20 August, 2008 at Hotel Bliss, Tirupati, Andhra Pradesh, under the aegis of the Academy of Grassroots Studies and Research of India (AGRASRI), Tirupati, Andhra Pradesh. Dr. D. Sundar Ram, Director of the AGRASRI, Co-ordinate the programme.
A research article that touches upon the everlasting issue of rising Non-Performing Assets ( Stressed Assets) in the Indian Banking Industry.
It explores macro economic concepts coupled with evolving legal regulations that may have just given passage to a lucrative debt market in India.
This document summarizes a research journal article that analyzes performance indicators related to the financial sustainability of microfinance institutions (MFIs) in East Asia and Pacific and South Asian countries. The article finds that while outreach increases for MFIs, average loan size decreases, and this effect is smaller for South Asian MFIs compared to East Asian MFIs. Financial sustainability is similar between regions but operational sustainability differs. The factors influencing financial and operational sustainability also differ by region. The results identify important region-specific variables that can be improved to increase MFI sustainability.
Similar to Reforms in rural credit cooperatives in india (20)
This document discusses the importance and benefits of training for employees. It defines training as a systematic process that improves corporate performance by developing employee skills and knowledge through instruction and practical activities. The document outlines differences between training, education, and development. It also describes principles of learning and a systematic approach to developing a training plan, including assessing needs, specifying objectives, designing programs, and evaluating training effectiveness.
The document discusses different types of interviews used in hiring and performance evaluation, including selection interviews, appraisal interviews, and exit interviews. It also describes structured vs unstructured interview formats and different types of interview questions. Key factors that can influence interviews are discussed, such as first impressions, misunderstanding the job, order effects, and personal characteristics of the interviewee. Guidelines are provided for designing effective interviews, including basing questions on job duties and using the same questions for all candidates.
This document discusses employee testing and selection. It covers the importance of careful selection, basic testing concepts like reliability and validity, different types of tests including cognitive, personality, and honesty tests. It also discusses test validation methods, legal guidelines regarding equal employment opportunities, and considerations for background checks, reference checks, and substance abuse screening in the selection process. The overall purpose is to provide an overview of how testing and assessment can be used to select the right employees.
Job analysis is the process of studying jobs to gather information about job duties, responsibilities, and requirements. This information is used to create job descriptions, which provide a summary of tasks and qualifications, and job specifications, which detail qualifications. Job analysis involves methods like observation, interviews, and questionnaires. Regularly updating job documentation ensures accuracy over time as jobs change.
This PowerPoint presentation provides an overview of key concepts in human resource management. It defines HRM as policies and practices related to recruiting, screening, training, rewarding and appraising employees. The presentation outlines the responsibilities of line managers in HRM. It also discusses high-performance work systems, measuring HR's contribution, certifications for HR professionals, and the scope of HRM. The overall presentation serves as an introduction to fundamental aspects of human resource management.
This document provides an overview of performance management objectives and processes. It aims to teach effective methods for creating constructive performance evaluations, communicating with employees, and using performance management forms and tools. The key points covered include: setting objectives and expectations with employees, providing ongoing feedback, conducting a formal annual performance evaluation with no surprises, linking individual performance to organizational goals, and developing measurable performance goals.
The document discusses performance appraisals in organizations. It defines performance appraisals as a system to review and evaluate job performance to assess accomplishments and develop plans for improvement. It also discusses performance management, where managers and employees work together to set expectations, review results, and reward performance. The document outlines the performance appraisal process, including planning goals, communicating them, establishing criteria, conducting reviews, and anticipating problems. It also discusses methods, responsibilities, legal implications, and ensuring effective appraisal systems.
This PowerPoint presentation discusses establishing strategic pay plans. It covers topics such as determining pay rates based on factors like internal equity, conducting salary surveys, job evaluation methods, grouping jobs into pay grades, using wage curves to price grades, and fine-tuning pay rates. It also addresses issues like compensation for managers and professionals, competency-based pay, broadbanding, the gender pay gap, and automating compensation administration. The overall presentation provides an overview of developing compensation systems aligned with business strategy.
This document discusses compensation and incentive plans. It begins by defining incentives as financial rewards paid to workers for exceeding production standards. It then examines various types of individual, team, and organization-wide incentive plans. Individual plans discussed include piece-rate plans, merit pay, and recognition awards. The document also summarizes theories related to motivation, needs, and rewards. It concludes by identifying reasons why incentive plans may fail, such as when performance pay replaces good management practices.
This document outlines the session plan for a course on Management of Cooperatives. It covers 4 modules that discuss the concept and principles of cooperation, types of cooperatives, an overview of specific cooperatives, and management functions in cooperatives. The modules will cover topics like the history and development of the cooperative movement in India, classification of cooperatives, roles of credit and marketing cooperatives, and challenges facing the cooperative sector. The session plan lists the lecture contents to be covered over 38 lectures.
This document provides an assignment for a Masters in Applied Management program requiring students to give seminar presentations on various types of cooperatives. It lists the 17 topics that students are assigned, including cotton, sugar, dairy, oilseeds, credit and banking, fisheries, housing, and marketing cooperatives. Students must present on their assigned cooperative topic after December 30th, 2014 and notes their assignment number and seminar title.
NCDC provides financial assistance for establishing agro-processing units, food grain processing facilities, oilseed processing units, and other processing cooperatives. It also supports service cooperatives involved in agricultural credit, labor, water conservation, animal health, rural sanitation, and agricultural insurance. Additionally, NCDC aids industrial cooperatives focused on cottage and village industries, handicrafts, and rural crafts through establishing production facilities, expanding existing units, constructing marketing infrastructure, and strengthening cooperatives' capital bases.
A cooperative is an organization owned and controlled by its members, who share in the benefits. Cooperatives operate according to principles of democracy, equality, equity and solidarity. There are various types of cooperatives including consumer cooperatives, worker cooperatives, housing cooperatives and agricultural cooperatives. Cooperatives originated in Europe in the 18th century and were influenced by ideas of economic democracy and mutual aid.
The cooperative movement began in the 19th century in Europe in response to the poor working conditions and economic challenges resulting from the Industrial Revolution. The first documented consumer cooperative was founded in 1769 in Scotland when local weavers began bulk-buying and reselling goods. Robert Owen is considered the father of the cooperative movement, establishing early cooperatives in Scotland and the US. In 1844, the Rochdale Society of Equitable Pioneers established the Rochdale Principles that became the basis for the modern cooperative movement, including practices like democratic voting and sharing profits. Over the following decades, cooperatives spread across Europe and to other parts of the world.
Dairy cooperatives in India engage in milk production, procurement, processing and marketing. The document lists district cooperative unions statewise and provides basic information about some of them, such as the number of primary societies covered and quantity of milk procured in 1996. Most unions also provide extension services like artificial insemination and animal health services including vaccination and mobile clinics.
Cooperatives are autonomous associations that are owned and controlled by their members. They operate for the mutual benefit of their members. There are various types of cooperatives including consumers' cooperatives owned by customers, producers' or workers' cooperatives owned and controlled by employees, and housing cooperatives owned by residents. Cooperatives have principles of voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education and training, cooperation among cooperatives, and concern for the community.
Consumer cooperatives are businesses owned and run by their members for their mutual benefit. They operate democratically, with each member having one vote. Consumer cooperatives often take the form of retail stores like grocery stores. They can also operate in areas like insurance, housing, and banking. The first modern consumer cooperative was the Rochdale Society of Equitable Pioneers established in 1844 in England. It established principles of democratic member control and distribution of surplus that became the model for consumer cooperatives worldwide.
Capitalism and socialism differ in their views on the role of government and economic equality. Socialists believe the government should reduce inequality through programs that benefit the poor, while capitalists argue the free market is more efficient. Schumpeter theorized that advanced capitalism would lead to the election of socialist governments and restrictions on entrepreneurship, eventually replacing capitalism with socialism through democratic means rather than revolution. Intellectuals would play a role in criticizing capitalism and supporting socialism. However, Schumpeter did not foresee the failure of socialism in Eastern Europe or technology fostering innovation in Western societies.
A banking cooperative is a financial institution that is owned and controlled by its members, who are both customers and owners. Banking cooperatives are formed by people within a local community or professional group to provide members with loans, deposits, and other banking services. Unlike stockholder banks, cooperatives are organized democratically and aim to meet members' needs rather than maximize profits. Banking cooperatives are also deeply involved in and support the development of their local communities.
This document outlines an assignment for a Masters in Applied Management course on the management of cooperatives. It instructs students to write a minimum of 15 pages on the contemporary issues facing cooperative sectors in various Indian states, with each student focusing on a different state, and to submit their assignments by December 30th, 2014.
Benchmarking Sustainability: Neurosciences and AI Tech Research in Macau - Ke...Alvaro Barbosa
In this talk we will review recent research work carried out at the University of Saint Joseph and its partners in Macao. The focus of this research is in application of Artificial Intelligence and neuro sensing technology in the development of new ways to engage with brands and consumers from a business and design perspective. In addition we will review how these technologies impact resilience and how the University benchmarks these results against global standards in Sustainable Development.
Open Source and AI - ByWater Closing Keynote Presentation.pdfJessica Zairo
ByWater Solutions, a leader in open-source library software, will discuss the future of open-source AI Models and Retrieval-Augmented Generation (RAGs). Discover how these cutting-edge technologies can transform information access and management in special libraries. Dive into the open-source world, where transparency and collaboration drive innovation, and learn how these can enhance the precision and efficiency of information retrieval.
This session will highlight practical applications and showcase how open-source solutions can empower your library's growth.
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"Dr. Nasir Mustafa
CERTIFICATE OF APPRECIATION
"NEUROANATOMY"
DURING THE JOINT ONLINE LECTURE SERIES HELD BY
KUTAISI UNIVERSITY (GEORGIA) AND ISTANBUL GELISIM UNIVERSITY (TURKEY)
FROM JUNE 10TH TO JUNE 14TH, 2024
APM event held on 9 July in Bristol.
Speaker: Roy Millard
The SWWE Regional Network were very pleased to welcome back to Bristol Roy Millard, of APM’s Assurance Interest Group on 9 July 2024, to talk about project reviews and hopefully answer all your questions.
Roy outlined his extensive career and his experience in setting up the APM’s Assurance Specific Interest Group, as they were known then.
Using Mentimeter, he asked a number of questions of the audience about their experience of project reviews and what they wanted to know.
Roy discussed what a project review was and examined a number of definitions, including APM’s Bok: “Project reviews take place throughout the project life cycle to check the likely or actual achievement of the objectives specified in the project management plan”
Why do we do project reviews? Different stakeholders will have different views about this, but usually it is about providing confidence that the project will deliver the expected outputs and benefits, that it is under control.
There are many types of project reviews, including peer reviews, internal audit, National Audit Office, IPA, etc.
Roy discussed the principles behind the Three Lines of Defence Model:, First line looks at management controls, policies, procedures, Second line at compliance, such as Gate reviews, QA, to check that controls are being followed, and third Line is independent external reviews for the organisations Board, such as Internal Audit or NAO audit.
Factors which affect project reviews include the scope, level of independence, customer of the review, team composition and time.
Project Audits are a special type of project review. They are generally more independent, formal with clear processes and audit trails, with a greater emphasis on compliance. Project reviews are generally more flexible and informal, but should be evidence based and have some level of independence.
Roy looked at 2 examples of where reviews went wrong, London Underground Sub-Surface Upgrade signalling contract, and London’s Garden Bridge. The former had poor 3 lines of defence, no internal audit and weak procurement skills, the latter was a Boris Johnson vanity project with no proper governance due to Johnson’s pressure and interference.
Roy discussed the principles of assurance reviews from APM’s Guide to Integrated Assurance (Free to Members), which include: independence, accountability, risk based, and impact, etc
Human factors are important in project reviews. The skills and knowledge of the review team, building trust with the project team to avoid defensiveness, body language, and team dynamics, which can only be assessed face to face, active listening, flexibility and objectively.
Click here for further content: https://www.apm.org.uk/news/a-beginner-s-guide-to-project-reviews-everything-you-wanted-to-know-but-were-too-afraid-to-ask/
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdfnservice241
The University of Ghana has launched a new vision and strategic plan, which will focus on transforming lives and societies through unparalleled scholarship, innovation, and result-oriented discoveries.
Lecture Notes Unit4 Chapter13 users , roles and privilegesMurugan146644
Description:
Welcome to the comprehensive guide on Relational Database Management System (RDBMS) concepts, tailored for final year B.Sc. Computer Science students affiliated with Alagappa University. This document covers fundamental principles and advanced topics in RDBMS, offering a structured approach to understanding databases in the context of modern computing. PDF content is prepared from the text book Learn Oracle 8I by JOSE A RAMALHO.
Key Topics Covered:
Main Topic : USERS, Roles and Privileges
In Oracle databases, users are individuals or applications that interact with the database. Each user is assigned specific roles, which are collections of privileges that define their access levels and capabilities. Privileges are permissions granted to users or roles, allowing actions like creating tables, executing procedures, or querying data. Properly managing users, roles, and privileges is essential for maintaining security and ensuring that users have appropriate access to database resources, thus supporting effective data management and integrity within the Oracle environment.
Sub-Topic :
Definition of User, User Creation Commands, Grant Command, Deleting a user, Privileges, System privileges and object privileges, Grant Object Privileges, Viewing a users, Revoke Object Privileges, Creation of Role, Granting privileges and roles to role, View the roles of a user , Deleting a role
Target Audience:
Final year B.Sc. Computer Science students at Alagappa University seeking a solid foundation in RDBMS principles for academic and practical applications.
URL for previous slides
chapter 8,9 and 10 : https://www.slideshare.net/slideshow/lecture_notes_unit4_chapter_8_9_10_rdbms-for-the-students-affiliated-by-alagappa-university/270123800
Chapter 11 Sequence: https://www.slideshare.net/slideshow/sequnces-lecture_notes_unit4_chapter11_sequence/270134792
Chapter 12 View : https://www.slideshare.net/slideshow/rdbms-lecture-notes-unit4-chapter12-view/270199683
About the Author:
Dr. S. Murugan is Associate Professor at Alagappa Government Arts College, Karaikudi. With 23 years of teaching experience in the field of Computer Science, Dr. S. Murugan has a passion for simplifying complex concepts in database management.
Disclaimer:
This document is intended for educational purposes only. The content presented here reflects the author’s understanding in the field of RDBMS as of 2024.
Topics to be Covered
Beginning of Pedagogy
What is Pedagogy?
Definition of Pedagogy
Features of Pedagogy
What Is Pedagogy In Teaching?
What Is Teacher Pedagogy?
What Is The Pedagogy Approach?
What are Pedagogy Approaches?
Teaching and Learning Pedagogical approaches?
Importance of Pedagogy in Teaching & Learning
Role of Pedagogy in Effective Learning
Pedagogy Impact on Learner
Pedagogical Skills
10 Innovative Learning Strategies For Modern Pedagogy
Types of Pedagogy
1. IOSR Journal of Business and Management (IOSR-JBM)
ISSN: 2278-487X. Volume 4, Issue 3 (Sep-Oct. 2012), PP 41-45
www.iosrjournals.org
www.iosrjournals.org 41 | Page
Reforms in Rural Credit Cooperatives in India
Prof. Sharad N. Bansal1
, Dr. Shradha H. Budhedeo2
, Mr. Girish Thakkar3
1
Department of Cooperative Management and Rural Studies Faculty of Commerce M S University of Baroda
Vadodara, Gujarat, India
2
Assistant Professor Department of Business Economics Faculty of Commerce M. S. University of Baroda
Vadodara, Gujarat, India
3
Teaching Assistant Department of Cooperative Management and Rural Studies Faculty of Commerce
M. S. University of Baroda Vadodara, Gujarat, India
Abstract: Rural credit cooperative system in India is world’s largest rural financial systems. During the past
over hundred years, these credit cooperatives have witnessed many successes and failures. For a long time,
cooperatives have been plagued by numerous problems such as undue government interference, poor
governance and management, high overdues and lack of deposits, financial indiscipline and accumulating non-
performing assets. In response to that, a nationwide reform and revival exercise was initiated by the
Government of India in 2004. This paper examines the important features and strategies of these reforms in
short-term rural credit cooperatives in India.
Key Words: Cooperative Credit Societies Act, Impairment, Primary Agricultural Credit Societies, Rural
Credit Cooperatives, Task Force.
I. Introduction
The cooperatives, institutionalized in 1904 with the enactment of Cooperative Societies Act, have been
an important part of the development of India for over 100 years now. It was born predominantly as a
Government initiative to address the twin issues of farmers’ indebtedness and poverty. The rural cooperatives in
India have a complex structure, with institutions specializing in short-term and long-term credits. The short-
term rural credit cooperatives [RCC] in India were originally envisaged as a mechanism for pooling the
resources of people with small means and providing access to different financial services.
The RCC in India has a three-tier federal structure. It comprises of Primary Agricultural Credit
Societies [PACS] at the grass root village level, the District Central Cooperative Banks [DCCB] at the
intermediate level; and at the top, State Cooperative Banks [SCB]. India has a well spread short-term credit
cooperative network having more than 94,600 village-level PACS, with atleast one PACS for every six villages
and total cooperative membership of over 126 million rural people, covering almost half of India’s total
population [GoI, 2006]. This makes the rural cooperative credit structure as one of the largest rural financial
systems in the world. During the past over hundred years, the RCC have seen many successes and failures;
nonetheless no other institution has brought so many people together for a common cause. The rural credit
cooperative sector in India was plagued by numerous problems such as undue government interference, poor
governance and management, high overdues and lack of deposits, financial indiscipline and accumulating non-
performing assets. In response to that, a nationwide reform and revival exercise was initiated by the
Government of India in 2004.
The current study is exploratory in nature and has been organized into four sections. Section one of the
paper traces the history of evolution of short-term rural credit cooperatives. Section two explores the reasons for
impairment of RCC. Section three discusses the sequencing of action plan of reforms. The fourth section
presents a summary of benchmark activities and status of implementation of the revival package.
II. Phases In Evolution
Since its inception in 1904, Indian short-term rural credit cooperative [RCC] sector has witnessed four
significant phases in its progression [Vaidyanathan, 2004], illustrating the difficulties in striking a balance
between self-sufficiency and state support of the sector [Li and Parmar, 2007]. The First Phase [1900-30]
witnessed the government led active initiatives in promoting the credit cooperatives in the country with first
Cooperative Credit Societies Act in India passed in 1904. Later in 1919, the ‘cooperation’ was made a
provincial subject. The Second Phase [1930-50] began with the establishment of Reserve Bank of India Act in
1934, which played a major role in setting up, strengthening and promoting financially viable cooperative
banks, central cooperative banks, marketing societies and primary agricultural credit societies in each province.
However, there was a lull in the government policy towards cooperatives during this phase. This phase
witnessed signs of sickness with a large number of cooperatives being saddled with frozen assets, because of
2. Reforms in Rural Credit Cooperatives in India
www.iosrjournals.org 42 | Page
heavy overdues. The Third Phase [1950-90] began with the beginning of India’s planned economic era focusing
on the need for rapid and equitable economic development. The cooperatives were once again viewed as
vehicles of change in achieving these goals. During this period, the cooperative sector witnessed increasing state
partnership and patronage in terms of equity, governance and management, resulting into the consequent
erosion of cooperative discipline, credit worthiness and quality of portfolio of cooperatives. The focus was on
expanding and reorganizing the state supported structure, without addressing the tasks of restoring and
strengthening autonomy, mutual help and self-governance that are the cornerstones of genuine cooperatives
[Vaidynathan, 2004].
The Fourth Phase [1990 onwards] was a turning point in India’s economic history. This was a period of
economic reforms which highlighted the increasing realization of the destructive effects of intrusive state
patronage, politicization, and the consequent impairment of the role of cooperatives. In 2004, the Government
of India constituted a Task Force [Vaidyanathan 2004] to formulate a practical and implementable plan of
action to revive the rural cooperative credit structure.
III. Causes Of Impairment
Despite the phenomenal outreach and volume of operations, over the years, the health of rural credit
cooperatives deteriorated significantly, experiencing low resource base, huge accumulated losses, borrower
centered policies, high dependence on external sources of funding, government control, poor business
diversification and low fund recovery. Almost half of the PACS turned into loss-making units. The share of
PACS in agricultural credit at all India level fell down from 62% in 1992-93 to 22% in 2007-08. Although
organized on the principles of self-governance and self-reliance, the RCC faced fundamental policy,
governance, legal and institutional problems that impaired its solvency, sustainability and efficiency [ADB
2010]. Vaidyanathan [2004] classifies these problems into three broad categories: governance, management and
financial.
A. Impairment of Governance
In India, the cooperative credit institutions are largely credit based as against the joint functions of
credit and thrift practiced by similar institutions in other parts of the world. The structure is, therefore, driven by
borrowers at all levels, which creates a serious conflict of interest. Prior to the reforms, the impairment in
governance was visible in weak governance of the credit cooperative societies, both internal as well as external.
The former was represented by the composition of the boards of directors of the cooperatives and the reporting
systems that were skewed towards state control. Besides the harmful effects of excessive politicization of these
organizations, the cooperatives also lost their right to self-governance as they became greatly dependent on the
state for its functions. Even the external regulation and supervision for the structure were not stringent enough.
B. Impairment in Management
The impairment in the management of RCC was a direct result of the impairment in governance. The
various forms of interference of State Governments included deputation of officials to top positions in many
banks, setting up common cadres for senior positions across all cooperative tiers, determination of staffing
pattern, interference in the operational decisions of the cooperatives, and imprecise demarcation of governance
and management functions.
C. Impairment in Financial Performance
The cumulative impact of poor governance and failure in management of cooperatives resulted into
poor financial health and viability of the rural credit cooperatives in India. As these cooperatives have been
borrower centric societies, the members were not risk bound and had limited accountability in the management
of funds. Even the boards of management and their functionaries were not held accountable for laxity in
granting and monitoring loans, poor quality of loan portfolios, high default rates and non-performing assets
(NPAs). The reason for the losses could be traced mainly to the overall business levels and poor recovery
position of each of the cooperative tiers. The recovery percentages for the system as a whole have been low
continuously, making the system unsustainable without external injection of resources.
High transaction costs due to lack of standardized business models and overstaffing, and high risk costs
due to low recovery levels led to the impairment of the rural credit cooperatives to a large extent. Another
cause of financial impairment was the lack of scope for cross subsidization. At the higher tiers, there were over-
exposures to certain sectors of agriculture, which increased the covariance risks. The loan portfolios of the
system as a whole was thus prone to greater risk and required provisions for risk costs, leading to extremely low
and in many cases negative net margins. PACS did not follow well-defined risk provisioning norms. The
lending rates of PACS have been state controlled, which despite being at higher risks were set well below the
market rate.
3. Reforms in Rural Credit Cooperatives in India
www.iosrjournals.org 43 | Page
IV. Action Plan For Reforms
Over the years, the growing concerns for impairment of credit cooperatives in rural India led to the
setting up of the Task Force on Revival of Cooperative Credit Institutions, appointed by the Government of
India in 2004 [Vaidyanathan 2004]. The committee recommended an action plan for reviving and revitalizing
the rural credit cooperative institutions through legal measures necessary for facilitating this process. The task
force submitted its report in February 2005, and after extensive discussions the revival package was
implemented across the country in January 2006. The NABARD was made the implementing agency for the
purpose. The revival package was a combination of legal and institutional reforms, capital infusion and
technical support for capacity building. The implementation of the action Plan [ADB 2010] of the revival
package was perceived to result in the emergence of a strong, self-reliant and well-knit network of rural
cooperative credit system. The implementation of the revival package involved planning and execution of a
series of action plans for:
A. facilitating legal, regulatory and governance framework
B. institutional reforms for sustainability
C. financial package and;
D. eligibility norms
A. Facilitating Legal, Regulatory, and Governance Framework
The state enacted Cooperative Societies Acts (CSAs) were amended for : providing full voting
membership rights to all financial service users including depositors in cooperatives; removal of state
interventions in all financial and internal administrative matters; capping the equity of participating states at 25
% and restricting participation of state in the boards of cooperative banks to one nominee; giving cooperatives
the freedom to access loans from any regulated financial institution and not necessarily from its upper tier and
similarly permitting to place their deposits with any regulated financial institution of their choice. State power
was also limited from superseding boards, while due emphasis was given to ensuring timely elections.
Cooperative banks were brought under the regulatory ambit of the Reserve Bank of India (RBI) and were
subjected to prudential norms, including CRAR.
Besides, NABARD Act, 1982 and the Banking Regulation Act, 1949 were amended. With these
amendments co-operatives were brought under the ambit of banking prudential norms of income recognition,
capital adequacy, asset classification and provisioning. In an effort to strengthen the corporate governance
framework, criteria’s for CEOs and other directors were clearly defined and efforts were made to withdraw the
state government nominees from the Board of PACS. Moreover, SCBs were also required to undergo a rating
by an approved agency.
B. Institutional Reforms for Sustainability
Institutional reforms involved implementation of action plans, such as: (i) account standards (ii)
management information systems including internal control and audit systems (iii) computerization plan (iv)
human development plan for RCC.
PACS were also required to undergo special audits (to assess the extent of accumulated losses as of 31st
March 2004), based on uniform accounting criteria and implement plans to phase out cadre-based secretaries in
PACSs for greater accountability in functioning of PACSs. Institutional reforms also sought for development
and implementation of plans in participating states having ineligible PACS.
C. Financial Package
Financial package was a one-time conditional measure released only on the implementation of the
recommendations for legal and institutional reforms with the objective of bringing PACS to an acceptable level
of financial health through cleansing of their balance sheets and strengthening their capital base. The financial
package was subject to specific conditions. The quantum of financial assistance for covering the accumulated
losses of PACS as of 31st
March 2004 was determined on the basis of the uniform accounting standard. The
special audit ensured that in the event of insufficient provisioning made by the RCC, they do not get
undercapitalized. The package assistance initially allowed PACS to reach a minimum Capital to Risk Weighted
Assets Ratio (CRAR) of 7 percent and within a span of three years increased to 9 % to meet the minimum
industry standards. All RCC were expected to meet the CRAR by such time.
With the new financial package, the share of the state government was aimed to bring down to below
25 percent of the total subscribed share capital within a period of three years. In case the share of State
Government’s equity was more than 25%, the excess amount would be converted into a grant by the state
government to the concerned RCC entity. There was strong emphasis on phasing out the State Government
equity participation within a reasonable period of time. The revival package envisaged that financial
restructuring would start with first bringing the PACSs to an acceptable level of financial health through
cleaning of their balance sheets and strengthening their capital bases, and then moved to the upper tiers. This
4. Reforms in Rural Credit Cooperatives in India
www.iosrjournals.org 44 | Page
would enable PACSs to clear their dues to the upper tiers and thereby reduce the accumulated losses of DCCBs.
The DCCBs would then be provided assistance to clear the balance of accumulated losses, if any, and to reach
minimum capital adequacy norms. The same process would apply to SCBs.
D. Eligibility Norms
All PACS with a recovery level of at least 30% of the demand as on 30th
June 2004 were qualified for
being covered under the revival package. State governments were obliged to determine the future set up of
PACS having recovery levels of less than 30%. State governments were required to take appropriate steps to
ensure the flow of agricultural credit to farmers in the operational areas of such non-qualifying PACS.
PACS with recovery levels between 30% to 50% received financial assistance in three annual back-ended
installments (at the beginning of each succeeding year), subject to their achieving an incremental increase in
their recovery rate of at least 10 percentage points on 30th
June 2006 against the benchmark recovery achieved
on 30th
June 2004, and with an annual increase of 10 percentage points thereafter. Full capitalization was
provided to PACS with recovery levels of 50% and above. As and when a PACS would achieve 50% recovery,
the entire financial assistance would be released without waiting for the year to year recovery benchmarks.
V. Benchmarking And Status On Implementation
Release of financial assistance under the financial package was linked to achievement of pre-defined
benchmarks in respect of legal, institutional and regulatory reforms and therefore, was phased over a period
[GoI, 2006]. Following is a summary of monitored benchmark activities under the package:
a. State Government accepts the package, issues consent letter, and signs the MOUs with GoI.
b. Assistance is provided for conduct of special audits, computerization and HRD initiatives of RCC.
c. PACS/DCCB/SCB sign MOUs with implementation committees, executive order amending necessary
provisions in CSA issued by state government and after special audits are completed, state government
releases committed liabilities.
d. 75% of financial assistance for funding the accumulated losses is released.
e. Elections are conducted wherever due, professionals are either elected or co-opted, professional CEO
appointed, CSA amended or special chapter incorporated, a sound system of internal checks and controls
put in place by SCBs/DCCBs and Development Action Plans/MOUs are signed.
f. Balance 25% of financial assistance for funding accumulated losses is released.
Since the implementation of the revival package in 2006, 25 state governments have entered into MoU
for the revival of their respective short-term rural credit cooperatives. Subsequently, the amendments to the
respective Cooperative Societies Acts and adoption of by-laws by the cooperatives have either been completed
or are underway.
One of the most noticeable highlight under the reforms exercise has been the introduction of common
accounting system [CAS] and management information system [MIS], and training to the staff and members of
cooperatives to adopt these new practices. Over 90 percent of the RCC are currently involved in various stages
of reforms and 63% of eligible PACS have received recapitalization from the governments, as shown in Table
1.
Table 1
Status on Implementation of Revival Package
Sr
No.
Reform Agenda Implementation
1
Execution of MoUs 25 State Governments have signed the Memorandum of
Understanding (MoU) with GoI and NABARD, covering
more than 96% of the RCC units in the country.
2 Special Audit of PACS Out of the total 83,553 PACS, Special Audit has been
completed in 80,837 PACS [96.75%].
3 Amendments to Cooperative
Societies Act
21 States have amended their respective State
Cooperative Societies Act through Legislative Process.
4 Amendments of Rules and
Adoption of Bye-laws
Consequent to the amendment of the State Cooperative
Societies Act, 08 States have already amended their
respective State Cooperative Societies Rules in tune with
the amended Acts and the task is under progress in 13
more States.
The bye laws of PACS have been amended in 10 States
and are in progress in 10 more States.
The process of amendment of Rules and bye-laws has
been initiated in other implementing States.
5. Reforms in Rural Credit Cooperatives in India
www.iosrjournals.org 45 | Page
5 Status of Elected Board in
CCS Structure
92% PACS
6 HRD Training 83,452 PACS secretaries in 21 States.
1, 27,350 elected members of PACS in 18 States.
7 Common Accounting System
(CAS) and
Management Information
System (MIS) for PACS
Training Module on CAS and MIS completed in 76,237
PACS functionaries in 19 States.
8 Release of Recapitalization
Assistance in Eligible PACS
Number of PACS 53204 [63.68%]
GoI Share 78.43%
State Government Share 7.59%
CCS Share 13.97%
Source: NABARD [http://nabard.org/departments/highlights.asp]
VI. Performance Of Pacs
What has been the response to the reform exercise being carried out in the largest rural financial system
in the world? In order to assess the performance of the PACS before and over the post-reform period, certain
performance indicators have been identified and evaluated over a period of twenty years from 1993-94 to 2010-
11. The performance indicators have been compared for the following points of time: 1993-94 [the year for
which earliest data were available pre-reform exercise]; 2003-04 [the year for which the special audits of PACS
was carried out to find out the financial status of eligibility]; and 2010-11 [the latest year for which the
aggregate national data was available]. The source of data is the National Federation of State Cooperative Banks
Limited [NAFSCOB], Directory of PACS. NAFSCOB is the only agency involved in the collection and
aggregation of the data on PACS at state and national level.
Table 2 presents the performance per PACS from the pre-reform period to the post-reform period. The
membership per PACS has increased substantially and consistently over the three time periods from 972 in
1993-94 to 1281 in 2003-04 to as high as 1298 in the recent year of evaluation 2010-11. The number of
borrowers declined in 2003-04 but later revived in 2010-11. The working capital of each PACS has multiplied
manifold showing a tremendous growth from 17 lakhs in 1993-94 to almost 59 lakhs in 2003-04 and then
shooting up to 154 lakhs in 2010-11. The reserves held per PACS have more than doubled over each time
period of the study. Deposits and borrowings of the PACS have shown a significant expansion over the time
periods. The same is also true for loans and advances issued and outstanding, and the amount of overdues per
PACS.
Table 2
A Snapshot of the Performance of PACS: Pre and Post Reform Exercise
Performance Per PACS 1993-94 2003-04 2010-11
Membership 972 1281 1298
Number of Borrowers 552 485 561
Working Capital [in Rs. Lakhs] 17.01 58.68 154.39
Reserves [in Rs. Lakhs] 0.86 3.06 7.39
Deposits [in Rs. Lakhs] 2.29 17.16 39.86
Borrowings [in Rs. Lakhs] 9.95 32.39 57.81
Loan & Advances Issued [in Rs. Lakhs] 8.20 33.21 97.74
Loan & Advances Outstanding [in Rs. Lakhs] 11.50 41.49 93.96
Overdues [in Rs. Lakhs] 4.57 15.41 24.29
Total Number of PACS 91,592 105,735 93,413
Source: NAFSCOB [http://www.nafscob.org/pacs_f.htm]
References
[1] ADB, India: Rural Cooperative Credit Restructuring and Development Program, Asian Development Bank, 2010.
[2] GoI, Package for Revival of Short Term Credit Cooperative Structure, Ministry of Finance, Government of India [GoI], 2006.
[3] Li and Parmar, Rural Credit Cooperatives in India, University of Virginia, Darden School of Business, Darden Case No. UVA-BP-
0521, 2007.
[4] NAFSCOB, National Federation of State Cooperative Banks Limited, India, 2010.
[5] Vaidynathan, Report of the Task Force on Revival of Rural Cooperative Credit Institutions, Government of India, Ministry of
Finance, New Delhi, 2004.