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Co-operative banks are contributing the constituent part in the India’s banking and financial system. The role of cooperatives in urban areas has been increased in a sufficient part now a days due to increase of primary co-operatives there but there main role of financing the rural areas is also goes on increasing. The co-operative banks origin can be drawn out in the 1904 when the efforts are made to open financial concerns based on cooperation’s principles for solving the peculiar problems of Indian Economic Environment. The rural areas are imposing the main effect on the co-operative banks. The rural area requires funds for two reasons viz. Working capital through short terms needs and agriculture and other bearing activities through long run requirements. The agricultural and other than agricultural processes in the rural areas is typically seasonal. The households required credit to work seasonal activities in earning and expenditure. A co-operative movement plays a major role in development of social and economic environment in India. But Govt. of India has not provided a good support to the cooperatives due to which many problems has been faced by them. Thus, an attempt has been made to elaborate the problems and the relative perspective of co-operative banks in the Indian Economy.
Rosane Cavalcante Fragoso, Brasil
Chief Scientific Officer and Head of a Research Group
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