📜 Co-operative Credit Societies Act, 1912

The cooperative banking structure in India is a three-tier system that emerged with the enactment of the Co-operative Credit Societies Act, 1912.

This system was designed to provide credit facilities primarily to the agricultural and rural sectors through cooperatives at various levels.

🏦 Main Components of the Cooperative Banking Structure

(a) 🏛️ State Co-operative Bank (SCB):

• This is the apex-level cooperative bank in a state.

• It coordinates and supervises the activities of District Central Co-operative Banks (DCCBs).

• Provides them with financial support.

(b) 🌾 Land Development Bank (LDB):

• These banks are part of the cooperative structure.

• They specialize in providing long-term agricultural credit.

• Used for land improvement, irrigation, and rural infrastructure development.

(c) 🚜 Primary Agricultural Credit Societies (PACS):

• These form the base-level units in the cooperative credit system.

• They directly interact with farmers.

• Provide short-term and medium-term credit for agricultural and rural purposes.