Table of Contents

Chapter HEADINGS Page No.

No.

1 INTRODUCTION
1.1 Origin of Cooperative Society

1.2 Cooperative Society Definition

1.3 Cooperative Society Meaning

1.4 Cooperative Society Service

1.5 Cooperative Society System

1.6 Structure of Cooperative Society System in India

2 Cooperative Society Analysis

2.1 Cooperative Society

2.2 History of Cooperative Society

2.3 Types of Cooperative Society

2.4 Features of Cooperative Society

2.5 Advantage of Cooperative Society

2.6 Weaknesses Cooperative Society
2.7 Classification Cooperative Society

3 Profile of the Cooperative Society

3.1
3.2
3.3
3.4
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 4 DEPOSITS

4.1

4.2

5 LOANS AND ADVANCES

5.1

5.2

6
7
CONCLUSION
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BRANCH DETAILS
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2
INTRODUCTION

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 CHAPTER-I

INTRODUCTION

1.1 Origin of Cooperative Society:

The Origin of the Cooperative Society movement in Tamil Nadu dates back to the early
20th century during British colonial Rule. In 1904, the Cooperative CERDIT Societies Act
was Passed, which led to the establishment of the first Cooperative Society in Tamil Nadu at
THIRUR in Thiruvalluvar district. This movement gained momentum with the aim of
alleviating rural poverty and providing financial assistance to farmers. Over time, it expanded
to various sectors such as agricultural, handlooms, and housing. The Cooperative movement
in Tamil Nadu became a significant part of the state's socio-economic development

1.2 Cooperative society definition:

A cooperative society is an organization owned and operated by its members, who typically share
common interests or goals. Members contribute to and benefit from the cooperative's activities,
with decisions often made democratically. The primary objective is to provide mutual support and
services rather than maximizing profit. Examples include credit unions, agricultural co-ops, and
housing cooperatives.

1.3 Cooperative society meaning:

A cooperative society is a type of organization owned and operated by its members, who share the
profits or benefits. Members typically have equal voting rights, regardless of their level of
investment, and decisions are made democratically. Cooperative societies are formed to meet
common economic, social, or cultural needs. Examples include agricultural cooperatives, credit
unions, and housing cooperatives. The primary goal is to benefit members rather than to maximize
profits.

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1.4 Cooperative society service:
A cooperative society is an autonomous association of people who voluntarily come together to
meet their common economic, social, and cultural needs through a jointly-owned and
democratically-controlled enterprise. Cooperative societies provide various services to their
members, depending on the type of cooperative. Here are some common services.

Financial Services:
Credit unions and cooperative banks offer financial services such as savings accounts,
loans, and insurance products to their members, often with lower interest rates and
better terms compared to traditional banks.

Agricultural Services:
Agricultural cooperatives assist farmers by providing services like collective
purchasing of inputs (seeds, fertilizers), marketing of produce, storage facilities, and
technical support.

Consumer Services:
Consumer cooperatives allow members to purchase goods and services at competitive
prices. These co-ops may operate grocery stores, housing, or utility services that benefit
members.

Housing Services:
Housing cooperatives provide affordable housing options to members. They own and
manage residential properties, allowing members to live in cooperative-owned housing.

Health and Social Care Services:

Some cooperatives provide health care, social services, or mutual aid to their members,
ensuring accessible and affordable care.

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Education and Training Services:
Cooperatives often provide education and training programs to their members, focusing
on skills development, cooperative principles, and business management.

Marketing and Distribution Services:

Producer cooperatives help members market and distribute their products, often
securing better prices and market access.

Employment Services:
Worker cooperatives are businesses owned and operated by their employees. They
provide stable employment and a share of the profits to their worker-members.

Cooperatives are unique in that they operate on principles of democratic decision-

making, with each member having an equal say in the running of the society, usually
following the "one member, one vote" rule. They are designed to serve the best interests
of their members, rather than maximizing profit.

1.5 Cooperative society system:

A cooperative society is an autonomous association of individuals united voluntarily to
meet their common economic, social, and cultural needs and aspirations through a
jointly-owned and democratically-controlled enterprise. This system is based on the
principles of self-help, self-responsibility, democracy, equality, equity, and solidarity.

Key Features of a Cooperative Society:

Voluntary Membership:
Membership in a cooperative is open to all individuals who are willing to use its services
and accept the responsibilities of membership, without discrimination based on gender,
social, racial, political, or religious factors.

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Democratic Control:
Cooperatives are democratic organizations controlled by their members, who actively
participate in setting policies and making decisions. Typically, each member has one
vote, regardless of the amount of capital they have contributed.

Member Economic Participation:

Members contribute equitably to the capital of the cooperative and participate in its
management. Surpluses or profits are usually distributed among members in
proportion to their transactions with the cooperative, rather than based on capital
invested.

Autonomy and Independence:

Cooperatives are autonomous, self-help organizations controlled by their members.
Even when they enter into agreements with other organizations or raise capital from
external sources, they do so on terms that ensure democratic control by their members.

Education, Training, and Information:

Cooperatives provide education and training for their members, elected representatives,
managers, and employees so they can contribute effectively to the

development of their cooperatives. They also inform the general public about the nature
and benefits of cooperation

Cooperation Among Cooperatives:

Cooperatives serve their members most effectively and strengthen the cooperative
movement by working together through local, national, regional, and international
structures.

Concern for Community:

While focusing on member needs, cooperatives also work for the sustainable
development of their communities through policies approved by their members.

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Types of Cooperative Societies:

Consumer Cooperatives:
These are owned and operated by consumers who buy goods and services from their
cooperative. They aim to provide quality goods and services at reasonable prices.

Producer Cooperatives:
Owned by producers of commodities or crafts, these cooperatives help members process
and market their products. They ensure fair prices and eliminate middlemen

Worker Cooperatives:
Owned and operated by workers, these cooperatives aim to provide employment
opportunities and share the profits among the worker-members.

Marketing Cooperatives:
These assist small producers in selling their products by aggregating them to increase
bargaining power, thereby securing better prices.

Housing Cooperatives:
Owned by residents, these cooperatives provide affordable housing solutions and aim to
ensure that members have control over their living conditions.

Credit Unions and Financial Cooperatives:

These provide financial services to their members, such as savings accounts, loans, and
insurance, often at more FAVORABLE rates than traditional financial institutions.

Advantages of Cooperative Societies:

- Democratic management ensures that all members have an equal say in decision-
making.

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- Economic benefits such as profit sharing, lower costs, and reduced reliance on
intermediaries.

- Social benefits like community development and support for local economies.

- Sustainability and long-term focus, often promoting ethical business practices and
social responsibility.

Would you like to know more about a specific type of cooperative or any other details
about the cooperative society system.

1.6 Structure of cooperative society system in

Indian:
In India, a cooperative society is an autonomous association of people who come
together voluntarily to meet their common economic, social, and cultural needs and
aspirations through a jointly owned and democratically controlled enterprise. The
structure of the cooperative society system in India is defined by several layers of
organization and governed by both national and state-specific laws. Here's a breakdown
of the structure:

1. Primary Cooperative Societies:

- These are the basic units at the village or grassroots level.

- Primary cooperatives are formed by a group of people (usually 10 or more) who

share a common interest, such as farmers, artisans, or small-scale producers.

- Examples include credit cooperatives, agricultural cooperatives, consumer

cooperatives, dairy cooperatives, etc.

- Members elect a managing committee, and decisions are made through a democratic
process, with each member having one vote.

2. District Cooperative Societies:

- These societies operate at the district level and serve as a federation for primary
cooperative societies within that district.

- They provide financial, administrative, and technical support to primary societies.

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 - District cooperative banks are an example of this level, supporting credit and
financial transactions for primary agricultural credit societies.

3. State Cooperative Societies:

- These operate at the state level and include apex cooperative societies or state-level
federations.

- They represent all district cooperatives within a state and coordinate activities
between the district and national levels.

- State cooperative banks, state cooperative unions, and state federations (such as
those for dairy, sugar, and textiles) fall under this category.

- They work closely with the state governments, which often have significant
involvement in their functioning.

4. National Cooperative Societies:

- These are apex bodies at the national level, representing the cooperative movement
across the entire country.

- They coordinate and promote the interests of cooperative societies at the national
and international levels.

- Examples include the National Cooperative Union of India (NCUI), National

Federation of State Cooperative Banks (NAFSCOB), and National Agricultural
Cooperative Marketing Federation of India (NAFED).

- They often work under the Ministry of Cooperation, which was established by the
Government of India to strengthen the cooperative movement in the country

Legal Framework:
- Constitutional Provisions: The 97th Constitutional Amendment (2011) recognized
cooperatives as a fundamental right and inserted a new Directive Principle of State
Policy (Article 43B) that mandates the state to promote voluntary formation,
autonomous functioning, and professional management of cooperative societies.

- Central and State Legislation: Cooperatives in India are governed by both central
and state laws, such as the Multi-State Cooperative Societies Act, 2002, and respective
State Cooperative Societies Acts.

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Regulatory Authorities:
- Registrar of Cooperative Societies: Each state has a Registrar of Cooperative Societies
who oversees the registration, regulation, and auditing of cooperatives.

- Ministry of Cooperation: Formed in July 2021, this central ministry is responsible for
policy formulation, planning, and coordination of cooperative development activities
across India.

Key Features:
- Democratic Management: Cooperative societies operate on the principle of "one
member, one vote," ensuring democratic decision-making.

- Voluntary Membership: Membership is open to all who are willing to use the services
and accept the responsibilities of membership.

- Autonomy and Independence: While cooperative societies can receive financial and
other assistance from the government, they are supposed to maintain their autonomy
and independence.

Types of Cooperatives in India:

- Agricultural Cooperatives: For promoting agricultural production and marketing.

- Credit Cooperatives: For providing financial services to members.

- Consumer Cooperatives: For the purchase and distribution of consumer goods.

- Housing Cooperatives: For providing affordable housing to members.

- Worker Cooperatives: Owned and managed by the workers, for managing production
and services.

Conclusion:
The cooperative society system in India is a multi-layered structure, with primary
societies at the grassroots level, district and state federations providing support and
coordination, and national bodies representing the cooperative movement at the
national and international levels. This structure is guided by principles of democratic
management, autonomy, and voluntary membership, ensuring that cooperatives serve
the needs of their members effectively.

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 ORGANIZATION STRUCTURE OF RBI

RESERVE BANK OF INDIA

NABARD

TAMIL NADU STATE CO- OPERATIVE

BANK

DISTRICT CENTERAL CO-OPERATIVE

BANK

Bank
Department

Duty Register
Joint Register

Chief Revenue Officer

Duty Register

General Manager
Co-Operative Sub Register

Manager

ECO
Assistant Manager

Senior Inspector
Assistant

Sub Staff

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CO-OPERATIVE Society

ANALYSIS

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2.1 Cooperative Society meaning:
A cooperative society is an organization owned and operated by a group of individuals
for their mutual benefit. It is formed by people who come together voluntarily to meet
their common economic, social, and cultural needs through a jointly-owned enterprise.
The members of a cooperative share profits and have an equal say in its management,
regardless of the amount they have invested. Cooperatives operate on principles of
democracy, equality, and solidarity. They aim to serve the interests of their members
rather than maximizing profit for external shareholders.

Origin of cooperative society

The concept of a cooperative society originated in the early 19th century during the
Industrial Revolution in Europe, particularly in Britain. The first formal cooperative,
the Rochdale Society of Equitable Pioneers, was established in 1844 by a group of
weavers in Rochdale, England, to provide affordable, quality goods to its members. The
principles set by this society became the foundation for modern cooperatives worldwide.
The cooperative movement spread across Europe and North America, driven by the
need for fair economic opportunities and social justice. Over time, cooperatives
expanded into various sectors, including agriculture, finance, and housing.

2.2 History of cooperative society:

A cooperative society, often simply called a "co-op," is a business organization owned
and operated by a group of individuals for their mutual benefit. The history of
cooperative societies is deeply intertwined with social and economic developments
around the world.

Early Roots and Development:

- Ancient Times: The idea of cooperative action has ancient origins, with early
examples found in various communities across the world where people banded together
to achieve common goals. For example, farmers in ancient Greece formed ERANOI a
form of mutual aid society.

- Middle Ages: During the Middle Ages in Europe, guilds were formed to protect the
interests of craftspeople and merchants. These guilds often had cooperative elements,
such as shared resources and mutual support in times of hardship.

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Modern Cooperative Movement:
- 18th and 19th Century Industrial Revolution: The modern cooperative movement
began during the Industrial Revolution in the 18th and 19th centuries, a time of
profound social and economic change. Workers faced poor working conditions, low
wages, and limited access to goods and services. This led to the formation of consumer
and producer cooperatives.

The Rochdale Pioneers (1844): The most notable early cooperative was established in
Rochdale, England, in 1844 by a group of 28 workers known as the "Rochdale Society
of Equitable Pioneers." They established a set of principles that became the foundation
of the cooperative movement. The

Rochdale Principles emphasized democratic control (one member, one vote), open
membership, limited return on capital, and the promotion of education.

Expansion of the Cooperative Movement:

- Late 19th Century: The success of the Rochdale model led to the rapid spread of
cooperatives across Europe and beyond. In many countries, cooperatives were
established in various sectors, including agriculture, retail, credit unions, housing, and
insurance.

- 20th Century: The 20th century saw further growth of the cooperative movement.
Cooperatives played a significant role in rural development, particularly in agricultural
societies in Europe, North America, and later in developing countries. Governments in
many countries recognized cooperatives as vital tools for promoting social and economic
development.

- Post-World War II: After World War II, cooperatives became more prominent in
rebuilding war-torn economies. In developing countries, cooperatives were promoted as
a means of economic empowerment and poverty alleviation. The International
Cooperative Alliance (ICA), founded in 1895, played a key role in promoting
cooperative principles and providing a global platform for cooperation.

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Modern-Day Cooperatives:
- 21st Century: Today, cooperatives operate in almost every sector of the economy,
including agriculture, finance, retail, health, education, and housing. They are
particularly strong in sectors where community involvement and mutual support are
crucial. Globally, cooperatives are recognized for their potential to foster sustainable
development, social inclusion, and economic democracy.

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Impact and Legacy: Cooperative societies have proven to be resilient and adaptable
over time. They are often cited as a model for creating more equitable and sustainable
economic systems, emphasizing community ownership, shared benefits, and democratic
governance. The cooperative movement continues to evolve, adapting to new social,
economic, and technological challenges while remaining rooted in its core principles of
mutual aid and self-help.

2.3 Types of cooperative society:

Cooperative societies are organized to meet various needs of their members. They
operate in different sectors of the economy, and their types reflect the specific purposes
they serve. Here are the main types of cooperative societies:

1. Consumer Cooperatives:
- Purpose: To provide goods and services to their members at fair prices.

- How They Work: These cooperatives buy goods in bulk directly from producers or
wholesalers and sell them to members, often at lower prices than those offered by
regular retailers.

- Examples: Supermarkets, grocery stores, and purchasing cooperatives.

2. Producer Cooperatives:
- Purpose: To help producers (e.g., farmers, artisans, craftsmen) market and sell their
products, often achieving better prices through collective bargaining and economies of
scale.

- How They Work: Members (often small-scale producers) pool their resources for
processing, marketing, and distributing their goods.

- Examples: Agricultural cooperatives, artisan cooperatives, and fishing cooperatives.

3. Worker Cooperatives:
- Purpose: To provide employment to their members and allow them to have control
over their workplace.

- How They Work: The workers themselves own and run the business, share the profits,
and make decisions democratically.

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- Examples: Manufacturing units, technology startups, or service-based businesses like
cleaning or construction companies.

4. Credit Cooperatives (Credit Unions):

- Purpose: To provide financial services like savings and loans to their members at
competitive rates.

- How They Work: Members pool their savings to create a source of credit that is
available at lower interest rates than conventional banks.

- Examples: Credit unions, savings and loan associations, and cooperative banks.

5. Housing Cooperatives:
- Purpose: To provide affordable housing to members.

- How They Work: Members own shares in the cooperative, which owns and manages
the housing properties. This allows them to have a say in decisions related to
maintenance, management, and policies.

- Examples: Cooperative housing societies, resident-owned communities, and limited-

equity cooperatives.

6. Marketing Cooperatives:
- Purpose: To assist members in selling their products more effectively.

- How They Work: Members, often small-scale producers, come together to collectively
market their products. This helps in reducing marketing costs, achieving better market
prices, and expanding market reach.

- Examples: Farmers’ marketing cooperatives, dairy cooperatives, and fruit

cooperatives.

7. Insurance Cooperatives:
- Purpose: To provide insurance services to their members.

- How They Work: Members pool their resources to provide mutual insurance
coverage for themselves at more FAVORABLE terms than for-profit insurers.

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- Examples: Mutual insurance companies, health cooperatives, and mutual benefit
societies

8. Service Cooperatives:
- Purpose: To provide various services to their members, such as utilities, healthcare,
education, transportation, or communication.

- How They Work: Members jointly own and operate the service organization,
benefiting from lower costs or improved quality of services.

- Examples: Rural electric cooperatives, healthcare cooperatives, and childcare

cooperatives.

9. Multi-Purpose Cooperatives:
- Purpose: To provide a combination of services to meet the diverse needs of their
members.

- How They Work: These cooperatives engage in more than one type of activity, such as
providing credit, marketing produce, and supplying consumer goods.

- Examples: Agricultural cooperatives that offer credit, marketing, and supply

of inputs to their members.

10. Federated Cooperatives:

- Purpose: To serve as a network of smaller cooperatives that pool their resources to
achieve common goals.

- How They Work: Local cooperatives become members of a larger federated

cooperative, which offers services like bulk purchasing, marketing, or advocacy.

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- Examples: National agricultural cooperatives, regional credit unions, or cooperative
alliances.

Each type of cooperative society is designed to address specific economic, social, or

cultural needs of its members, providing a unique model of shared ownership,
democratic governance, and mutual benefit.

2.4 Features of cooperative society:

Cooperative societies are organizations where members come together to achieve
common economic, social, and cultural goals. Here are some key features:

Voluntary Membership: Membership is open to anyone who meets the

criteria and is willing to contribute to the society’s goals.

Democratic Control: Each member has an equal vote in decision-making

processes, typically on a one-member, one-vote basis.

Economic Participation: Members contribute equitably to, and

democratically control, the capital of the cooperative. Any surplus or profit is often
reinvested in the society or distributed among members.

Member Education: Cooperatives often provide education and training to

members to help them contribute effectively and understand cooperative principles.

Social Responsibility: They aim to meet the needs and aspirations of their
members and contribute to the community’s welfare.

Autonomy and Independence: Cooperatives are autonomous

organizations controlled by their members. They operate independently from other
organizations and external influences.

Cooperation Among Cooperatives: Cooperatives often work

together and support each other to strengthen the cooperative movement as a whole.

These features help cooperatives fulfil their primary goal of serving their members’
interests in a fair and equitable manner.

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2.5 Advantages of cooperative society:
Cooperative societies offer several advantages:

Member Control: Each member has an equal say in decision-making,

regardless of their financial contribution.

Profit Distribution: Profits are distributed among members based on their

participation or use of the cooperative, rather than their investment.

Lower Costs: Members often benefit from lower prices and reduced costs due
to collective purchasing and shared resources.

Access to Services: Cooperatives can provide essential services and

resources that might be inaccessible individually.

Economic Stability: By pooling resources, cooperatives can create a buffer

against economic fluctuations and provide financial stability for members.

Community Focus: They often focus on community development and local

needs, fostering a sense of solidarity and mutual support.

2.6 Weakness of cooperative society:

Cooperative societies also have some weaknesses:

Limited Capital: They may struggle to raise capital compared to traditional

businesses, which can limit growth and expansion.

Decision-Making Speed: Democratic decision-making processes can be

slower and less efficient, which might impact responsiveness.

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Management Challenges: Balancing diverse member interests and
managing a cooperative can be complex and require strong leadership.

Member Commitment: Success depends on active member

participation; lack of engagement can hinder operations.

Profit Motive: Because profit is not the primary motive, cooperatives might
lack the same drive for innovation and efficiency as profit-driven enterprises.

Regulatory Issues: Navigating regulations and maintaining compliance can

be challenging, especially for smaller cooperatives.

2.7 Classification of cooperative society:

Cooperative societies can be classified based on various criteria, such as their functions,
membership, or the type of activity they are involved in. Here are some common
classification1. Based on Purpose and Function:

- Consumer Cooperatives: Aim to provide goods and services to their members at

lower prices. Example: grocery co-ops.

- Producer Cooperatives: Focus on helping producers, such as farmers or artisans, by

pooling resources and marketing their products collectively. Example: dairy
cooperatives.

- Worker Cooperatives: Owned and operated by the workers, who share profits and
decision-making. Example: worker-run manufacturing plants.

- Housing Cooperatives: Provide affordable housing to their members, who collectively

manage the property. Example: cooperative apartment complexes.

- Credit Cooperatives: Offer financial services like savings accounts and loans to
members.

Example: credit unions.

- Agricultural Cooperatives: Support farmers by providing services like marketing,

processing, and distribution. Example: grain cooperatives.

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 2. Based on Membership:
- Single-Purpose Cooperatives: Focus on a specific activity or service. Example: a
cooperative solely for purchasing supplies.

- Multi-Purpose Cooperatives: Offer a range of services or activities. Example: a

cooperative that provides both housing and credit services.

3. Based on Legal Structure:

- Primary Cooperatives: Directly serve the needs of individual members. Example: a
local cooperative store.

- Secondary Cooperatives: Composed of primary cooperatives, usually to provide

support or additional services. Example: a federation of local cooperatives.

- Tertiary Cooperatives: Composed of secondary cooperatives, functioning at a

broader level, often to coordinate policies and activities. Example: national or
international cooperative organizations.

These classifications help in understanding the diverse roles and functions of

cooperative societies in different sectors and regions

Structure of the rural Co-operative credit

RURAL CO-OPERATIVE CREDIT

Long Term
Short Term

State Co- Primary Co-

operative Bank State Co-operative operative
agricultural and rural agricultural and
Central Co- development bank rural development
operative Bank (SCARDBS) bank (PCARDB)

Primary Co-
operative Bank

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STRUCTURE OF THE UNORGANIZED BANKING INDIA

STRUCTURE OF UNORGANIZED BANKING INDIA

Unorganized
Sector

Money Lender
Friend Relative Chit Fund

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PROFILE OF THE COOPERATIVE SOCIETY

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 CHAPTER-III

Profile of the cooperative society

3.1 profile of the Cooperative Society:

A cooperative society is a member-owned organization that operates for the mutual benefit
of its members. Here’s a brief profile:

Definition:
A cooperative society is a voluntary association of individuals who come together to achieve
common economic, social, and cultural goals through a jointly-owned and democratically-
controlled enterprise.

Key Characteristics:
1. Member-Owned: Each member has a say in the governance of the society, typically
one member, one vote.
2. Democratic Control: Decisions are made democratically, promoting equal
participation.
3. Economic Benefit: Profits are usually distributed among members based on their
participation or patronage.
4. Voluntary Membership:
Membership is open to all who can use the services and are willing to accept the
responsibilities of membership.
5. Education and Training:
Cooperatives often provide education and training to members to enhance their skills
and knowledge.

Types of Cooperatives:
1. Consumer Cooperatives: Owned by the consumers who buy goods and services
from the cooperative.

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2. Producer Cooperatives: Owned by producers who produce similar products
and work together for mutual benefit.

3. Worker Cooperatives: Owned and self-managed by the workers, who share the
profits and decision-making.

4. Agricultural Cooperatives: Focused on the agricultural sector, assisting farmers

in marketing their products or obtaining supplies.

Benefits:
Economic Stability: provides members with a stable source of goods/services and can help
improve local economies.

Empowerment: Encourages members to have a voice in business operations and community

issues.

Social Connection: Fosters a sense of Community and cooperation among members.

Challenges:
Funding: may face difficulties in accessing capital compared to traditional businesses.

Management: Requires effective management and decision-making structures to ensure

sustainability.

Examples:
Credit unions, food co-ops, housing cooperatives, and agricultural cooperatives are all
examples of cooperative societies that serve specific member needs.

This model emphasizes collaboration and shared ownership, aiming to create sustainable
communities through cooperative efforts.

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3.2 Cooperative Society Objectives:

The objectives of a cooperative society typically

include:

1. Mutual Benefit: TO provide goods and services that meet the needs
of members, enhancing their economic well-being.

2. Democratic participation: To promote democratic decision-

making and equal participation among members in the governance of the
society.

3.Economic Stability: To foster economic resilience and stability for

members through collective purchasing, production, or service provision.

4. Education and Training: To educate members about cooperative

principles and improve their skills, fostering personal and professional development

5. Community Development: To contribute to the social and

economic development of the community, enhancing overall quality of life.

6. Profit Distribution: To distribute profits fairly among members

based on their participation or usage of services, rather than capital investment.

7. Sustainability: To promote environmentally sustainable practices in

business operations and community interactions.

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8. Support for Members: To provide support services, such as financial
assistance or marketing, that empower members and enhance their livelihoods.

By focusing on these objectives, cooperative societies aim to create a more equitable and
sustainable economic model for their members and communities.

ORGANIZATION STRUCTURE:

3.3 Organization Structure of the VIRUDHUNAGAR Co-

operative Society:
The Virudhunagar Co-operative society is function on the basis on the basis of the
following organization structure.

Secretary

Assistant Secretary

Cashier

Appraiser

Clerk

Security

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 TABLE

TABLE FOR THE MEMBERSHIP OF THE COMPANY

YEAR MEMBERSHIP
2016-2017 278

2017-2018 376
2018-2019 744
2019-2020 1057
2020-2021 1369
2021-2022 1594

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 DEPOSITS

CHAPTER-IV

DEPOSITS

4.1 Definition

The term deposit means, ”A sum of money entrusted to a

Banker by a customer either for the purpose of safe keeping (or) for the

Purpose earning income there on”. Such money entrust to the banker is

Repayable to the customer either on demand (or) on the expiry of a fixed

Period.

4.2 Types of deposits

The NARIKUDI CENTRAL CO-OPERATIVE SOCIETY receive

Various type of deposit from the public. There are four types of deposit

Namely.

Saving Bank Account.

Current Account.

Fixed Deposit Account.

Recurring Deposit Account.

4.2.1 Saving Bank Account

A savings bank account is meant for the people of the lower and middle
classes who wish to save a part of their current incomes to meet their
savings. The banks, there four, impose certain restrictions on the saving

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bank account and also offer a reasonable rate of interest. The need of
keeping cash reserve against such deposits is comparatively ledger.
Because of the restriction on the number of withdraws.

Features:

✓ Pass Book ATM Card and Cheque Book facility.

✓ NEFT (National Electronic fund Transfer).

✓ Money transfer Services.

✓ Nomination Facility.

✓ Remittance.

✓ Saving account Deposit @ 3%

4.2.1.1 Restriction on withdrawals

In purchase of the objectives of the Savings Bank Accounts, banks impose

restrictions on the right of the depositor to withdraw money within a given
period. At present the savings bank deposit are subject to the regarding
the number and account of withdrawals within a specified period. The
number of withdrawals over a period of one year is limited only 50 items.

4.2.1.2 Minimum Balance

Banks require the depositors in the savings bank account to maintain a

minimum balance in their accounts. Reserve bank of India has permitted
the banks to prescribe the minimum balance themselves taking into
consideration the cost involving in maintaining and servicing such
accounts. Banks are required to inform the customers the requirement of
minimum balance at the time of opening the account in a transparent
manner. Any subsequent change in the minimum balance should also be
intimated similarly. Banks levy a specific service charge if the minimum
balance is not maintained. The customers should maintain the minimum
balance is Rs.500/- only.

TABLE

RATE OF INTEREST ON SAVINGS BANK ACCOUNT

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4.2.2 Current ACCOUNT

A current account is a running

and active account which may be
Operated upon any number of
times during a working day.
There is no
Restriction on the number and
the amount withdrawals from a
current
Account. As the banker is under
an obligation to replay these
deposits on
Demand, they are called demand
liabilities of a banker. Current
accounts suit
The requirement of
businessmen, joint stock
companies , institution, public

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Authorities and corporations,
ect., whose banking transactions
happen to be
Numerous on every working day.

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