INTRODUCTION
Co-operation is a form of economic organization. The term of co-operation is derived from the Latin word ‘Co-operari’, which means ‘working together’. International Co-operative alliance defines “a co-operative society is an autonomous association of person united voluntarily to meet their common, economic, social and cultural needs aspiration through a jointly owned and democratically controlled enterprise”. The potential of the co-operative approach was perceived by our great leaders even before India become independent. The father of nation, MAHATHMA GANDHI had said, “The co- operative movement will be blessing to India”.
Co-operative societies are the organization established for doing business with social commitment. The Co-operative societies play an important role in the socio economic development of a country. A Co-operative is an organization where in persons voluntarily associate together as human beings on the basis of quality for the promotion of economic interest of themselves. A Co-operative society is an institution established for the abandonment of competition in production and distribution of middle men in all kinds.
Co-operative movement in Kerala
The Kerala state came into existence on 1st NOVEMBER, 1956 after the re-organization states on linguistic basis. The geographical area of the state mainly consist of three parts, namely the former princely states of Cochin and Travancore and Malabar area of erstwhile Madras province ,in tune with the national policy. Travancore and Cochin states in July 1949. On account of historical reasons the above three regions had separate Co-operative societies act in their areas.
The former princely states had legislative powers. Therefore even prior to 1919, when Co-operation was transferred to the provinces, some of the princely stated separate Co-operative legislations. Accordingly Cochin and Travancore states had separate Societies Acts confining to their respective states.
Kerala Co-operative societies Act of 1969
When Kerala state was newly organized in 1956, merging the Travancore Cochin state Malabar area of the former Madras state, two different Co-operative laws were in operations viz. Travancore Cochin Co-operative Societies act of 1951
In T.C area. Hence from the very inception of the state there was the necessity for a uniform legislation, for the states, further activities of the co-operative movement was fast expanding and diversifying. Hence certain changes in existing laws were also in evitable to suit the present stages of development of co-operative movement. Accordingly the government then in power took initiative to bring the new legislation. But some how other it was prolonged and could no materialize. Finally in 1969, the present Act called Kerala Co-operative Societies Act was passed (Act 21 of 1969). Frequent change of Government was one of the reason s for the in ordinate delay in passing the Act. This Act came into effect on 15/05/1969 by a notification of the Government (No:23315/c.3/69 AD. DT 12/05/1969). The rules framed under the Act came into force in July 1969, replacing the rules under earlier enactment by the notifications of the Government No: 35649/69 AD.dt 14/07/69.
Service Co-operative Bank
After independence in India, there was general tendency of the nation towards development. People were enthusiastic and full of new ideas about the method of doing things in a more efficient and speedy way to achieve, the objectives of domestic planning and socialistic pattern. However the National Development Council reviewed the co-operative programmed in 1958 and called for organization throughout the country for service co-operatives a term, which has obtained wide attention after the Nagpur session of the Indian National Congress.
The term service co-operative was caused by our late Prime Minister Pt.Jawaharlal Nehru in connection with the controversy that arose around Co-operative farming. The term service co-operative has been borrowed from the United States. Where farm service co-operative seek to organize on co-operative basis. The term service co-operative was first used in 1957 by the Indian delegation to china on agrarian co-operative.
The word “co-operative” means “togetherness or join together”. The fundamental principle of co-operation is ‘each for all and all for each or self help and mutual help’. Self help made effective by organization is called a co-operative society. Co-operative services as an organizational for the economically weaker producers, farmers, workers and consumers for strengthening themselves and protecting themselves against the exploitation by the stronger. Co-operation is described as method of promoting economic progress and social justice and offer unlimited possibilities of people’s participation in economic reusagence.
PERIOD OF THE STUDY
The five-year period was selected for the purpose of the study beginning from the financial year 2003-2004 ending on the financial year 2007-2008
CO-OPERATIVE PRINCIPLES
• Voluntary and open membership
• Democratic member control
• Member economic participation
• Autonomy and independence
• Education training and information
• Co-operation among co-operatives
• Concern for community
CLASSIFICATION OF SOCIETIES
Co-operative societies can broadly be classified in to two classes namely Credit Co-operative and Non-Credit co-operatives. Credit co-operatives can again be classified into two such as Agricultural Credit Societies and Non Agricultural Credit Societies. Agricultural Credit Societies can further be classified into two categories namely those institutions dealing with short term and medium term agricultural credit and those institutions dispensing long term agricultural credit. The short term credit structure consists of primary Agricultural Credit Societies at the village, Central or District Co-operative bank at the district level. State Co-operative bank at the state level and National federation of State co-operative banks at National level. The long term credit structure consist of primary co-operative Agricultural and Rural development banks at the taluk level and State Co-operative Agricultural and Rural development banks at the state level and National Co-operative Agricultural and Rural development banks federation at the national level.
Co-operative institutions which are engaged in the activities of providing credit for non-agricultural purposes such as for financing artisans., small traders and providing financial assistance to small scale and cottage industries which are organized in the town or urban areas. The co-operative urban banks, employee’s credit societies and housing societies are included under the Non-agricultural credit Co-operatives.
Non Credit societies consist of producer’s society’s consumer societies and miscellaneous types of societies. Among Non credit organization under producers society there are two classes namely Agricultural producers and Non-Agricultural producers.
The primary consumer stores organized by students, employees and public, District wholesale co-operative stores, University Central stores and their federations at state and national levels are come under the classification of consumer co-operatives.
Co-operative unions do not come under any of the above categories. Circle c-operative union, State co-operative union, National co-operative union and International co-operative alliance are co-operative institutions charged with the responsibility of conducting the propaganda on co-operative principles and practice, Managing co-operative training colleges and centers and imparting co-operative education and training. Hence they are not economic organizations.
FEATURES OF CO-OPERATION
Voluntary organization
It is purely voluntary organization. Members join with their own free will. There is no compulsion or coercion what so over either to join the society or to live the society. In order to fulfill their common economic interest, members join the organization.
Organization of the poor
It is an organization of the poor. Usually it is persons of limited means that became members in a co-operative society. It originates among the economically week people. Co-operation is said to be a boon to the week sections of the community.
Equality
It is one of the important watch worse of co-operation. In a co-operative society everybody is equal. Nobody is superior or inferior. All of the members have equal rights and responsibilities. “One man One vote” is the policy adopted, irrespective of the shares held them. There is no question of rich or poor, higher caste or lower caste, educated or uneducated. Everyone is treated alike.
Democratic control
The affairs of co-operative society are democratically managed. The general body consist of members determines all major policies and programs of the organization. The managing committee elected by general body attends day to day matters. All decision is taken on democratic live.
Less stress on profit
Unlike a private enterprise, profit is not the motive of a co-operative organization. It stands for better service to its members. Profit is not the yard stick to measure the success of a society. The net profit if any is considered as surplus is distributed among the members on the basis of their dealing with the organization.
No rule for exploitation
In a co-operative society, there is no rule for exploitation. Actually co-operation aims at prevention of exploitation. It avoids middlemen. In a co-operative, everybody is treated well and nobody is cheated. Equitable distribution of surplus, limited interest on share capital etc are purposely adopted by the co-operatives as principles to avoid exploitation. Co-operation believes that exploitation is the route course of all evils and hence wants to route it out.
Each for all and all for reach
The basic principle of co-operation is each for all and all for each. The interest of an individual is well safe guarded in the group of which intern is expected to take care of the individual. in a co-operative organization affairs are carried us in an unselfish spirit which no other organization can claim “Self help and mutual help” which is mend for cultivating self reliance among the members.
MERITS
• The first and foremost merit of co-operation is that it seeks to remove the evils of capitalism. It stands between capitalism and communism.
• Co-operation is a weapon of persons of moderate means; promotion of economic interest by a person of moderate means handed may be difficult. But when such persons unit that may be possible.
• Co-operation helps the growth of real democracy. It is the training ground for persons to posse’s real democratic spirit. The supreme authority in a co-operative society vest in the general meeting where everyone has one vote and no more
• Co-operation is not only a business proportion to help people realize the economic end. Each for all and all for each is its motto.
• Thrift, self help and mutual help are the watch of worse of co-operation.
DEMERITS
• Although it is agreed by the ardent exponents of co-operation, i.e., it is an effective weapon for the poor to fight poverty. Experience has shown that the poorest people remain outside the movement.
• Capital is too small to serve the big enterprises. It is for disreason, that the capitalism their even were co-operation is a successful propagation.
• Co-operation can hardly be successful amongst the illiterate, who fail to realize the value of common Endeavour urgings sacrifices for his own individual benefit.
• Co-operation is not a political system. The conflict will be great if the capitalist have a larger voice in the government.
• Co-operation may succeed only in the fields were association into groups is greater advantage that individual action.
SOURSES OF FUNDS
Commonly a co-operative society works with owned fund/ internal and borrowed funds /external funds
Own funds
• Share capital
• Entrance fees
• Reserve funds and other Reserves
External resources
• Deposits from members for non members
• Borrowings from members for non members
• Grants and subsidies from government
Employee structure
The final authority is vested upon its general body. The day to day management of the society is entrusted to a Board of Directors. Comparing of 7 or 9 members. The number of board of directors are different in different co-operative banks. The board of directors elects the president and wise president, and the chief Executive of the society.
Generally a service co-operative bank has the following employees,
• Secretary
• Accountant
• Senior clerks
• Junior clerks
• Peon
• Attender
• Security
MAJOR PRACTISES
The main aim of the service co-operative bank is accepting of deposit and lending money. There are different types of deposits. The are,
Fixed deposit
When a fixed sum of money is deposited in bank for a definite period, it is called fixed deposit. Period may range from 30 days to any length of time.
Saving deposit
Savings deposits are the deposits or a convenient scheme adopted by the bankers to mobilize scattered savings of the public and to direct them towards proper invests. It is preferable to low income groups.
Home safe deposits
It is intended for children and housewives. Under this system the bank provided a small box or pot to the depositor. Key is kept in the hands of the employee of bank. At frequent intervals the competent authority visits the depositor’s house and collect the amount and credited to their account.
Nithyanidhi deposits
The bank provides nithyanidhi or daily collection deposits from businessman.
Cash certificate deposits
It is just like fixed deposits. The minimum period of cash certificate in 6 years. Just as fixed deposit a certificate of such deposit will be issued by bank.
Various types of loans and advances are given by a service co-operative bank.
AGRICULTURAL LOANS
Short term and medium term loans are usually given to members for agricultural purposes, which include rising of crops and maintenance of land. The loans are given for a period of 12 months. The loans can be used for purchasing seeds, pesticides and even for meeting labor change. Mostly given agricultural loan is Kissan credit card loan.
NON-AGRICULTURAL LOAN
Non agricultural loan includes medium term loan, gold loan and ordinary loan.
Medium term loan
MT loans issued for the purpose of land reclamation, repairing of wells and tanks for irrigation and other purpose.
Gold loan
The gold loan issued by this bank against the security of gold ornaments. This type of loans has greater demand among members.
Ordinary loan
Ordinary loans are given only for productive purpose such as improvement on land and business activities. Period of such loans are up to one year.
Different types of diversified activities are done by a co-operative bank. They are,
• Neethi store
• Consumer store
• Neethi gas
• Vasthralayam
• Festival market
• Medical store etc
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