Accounting Skills Paper-II (Registers of PACs and Credit Co-operative Societies)

Accounting Skills Paper-II
(Registers of PACs and Credit Co-operative Societies)
Prepared By
Dr. Sushil Bhimrao Bansode
(M.Com., G.D.C.&A., DID, SET, NET, Ph.D.)

Introduction to Registers of
PACs
&
Credit Cooperative Societies

Introduction
Primary Agricultural Credit Societies
(PACs) and Credit Cooperative Societies are
essential components of the cooperative credit
structure, particularly in rural areas. They play a
significant role in fostering financial inclusion,
promoting agricultural development, and
improving the livelihoods of their members by
providing accessible and affordable financial
services.

Primary Agricultural Credit Societies
(PACs)
• PACs are grassroots-level cooperative credit institutions primarily focused on catering to the
financial needs of the agricultural sector. They are the foundation of the cooperative credit system
in India, providing short-term and medium-term loans to farmers for various agricultural purposes.
• Objective:
1. PACs are established with the primary objective of promoting the economic and social well-
being of farmers and rural communities.
2. Aim to provide easy access to credit for purchasing agricultural inputs, improving farming
techniques, and supporting other rural activities.
• Functions:
 Credit Provision: PACs provide loans to farmers for crop production, purchase of seeds,
fertilizers, and agricultural equipment. They also offer credit for nonagricultural purposes like
housing, education, and small-scale industries.
 Savings and Deposits: PACs accept deposits from their members, encouraging savings habits
and providing a safe avenue for rural savings.
 Financial Inclusion: By providing accessible financial services, PACs contribute to the
financial inclusion of rural populations, helping them to avoid dependence on informal
moneylenders.

• Organizational Structure:
 PACs are typically set up at the village level and are member-driven. The
members are usually farmers, small landholders, and rural artisans.
 These societies operate on a cooperative basis, meaning they are owned and
controlled by their members, who have equal voting rights regardless of the
amount of capital they have contributed.
• Regulation:
 PACs are registered under the Cooperative Societies Act of the respective state.
 They are subject to supervision by the Registrar of Cooperative Societies (RCS)
of the state, and in some cases, by the National Bank for Agriculture and Rural
Development (NABARD).
• Registers:
 PACs maintain various registers to track financial transactions, membership
records, loan disbursements, repayments, and other activities.
 Common registers include Membership Register, Loan Register, Cash Book, and
Deposit Register.

Credit Cooperative Societies
• Credit Cooperative Societies are member-owned financial institutions that operate
on cooperative principles. They are established to meet the financial needs of their
members, who typically include farmers, artisans, small traders, and other low-
income groups.
• Objective:
1. The primary objective of Credit Cooperative Societies is to provide financial services to
their members at reasonable rates, thereby enhancing their economic well-being. These
societies promote thrift, self-help, and mutual aid among members.
• Functions:
 Loans and Advances: Credit Cooperative Societies provide loans for various purposes,
including personal needs, business ventures, housing, and education. They offer credit on
more favorable terms compared to traditional lenders.
 Savings Mobilization: These societies encourage their members to save by offering various
deposit schemes, such as savings accounts, fixed deposits, and recurring deposits.
 Other Financial Services: In addition to credit and savings, Credit Cooperative Societies
may offer insurance, pension schemes, and remittance services, depending on their scope
and size.

• Organizational Structure:
 Like PACs, Credit Cooperative Societies are also member-driven institutions. The
members pool their resources to create a common fund, which is then used to
provide loans and other financial services.
 These societies can be either urban or rural, with the primary focus on providing
credit facilities to their members.
• Regulation:
 Credit Cooperative Societies are registered under the Cooperative Societies Act of
the respective state or under the Multi-State Cooperative Societies Act, if they
operate in more than one state.
 These societies are regulated by the respective state’s Registrar of Cooperative
Societies or by the Central Registrar of Cooperative Societies if they are multistate
cooperatives.
• Registers:
 Credit Cooperative Societies maintain several key registers to ensure transparency,
accountability, and efficient management.
 Important registers include the Members Register, Share Register, Loan Register,
Cash Book, and Balance Sheet.

To keep & maintain the records of the
society
• It is necessary that the managing committee of the society should have to prepare all
registers, books of accounts and files as mentioned in Rule 65 and Bye-law No. 142 of the
Maharashtra Co-operative Societies Rules, 1961.
• It is the responsibility of the Secretary of the society to take entry in time in all registers
kept in society (bye- law No. 144).
• The society should have to prepare registers permanently. Such as Managing Committee
minute book, Register of General Body Meeting and special general body meeting, All
types of cash books, Bank Pass Book, Member Register, Bye-laws booklet, Audit Report,
Papers regarding ownership of the society, Sanctioned plan / lay-out of the society ,
Various permissions letter regarding construction, Occupation certificate of the building .
In addition to this all such papers which are necessary as per resolution of the society.
• Records of the society shall be in possession of the Secretary.
• After expiry of the tenure of the Secretary of the society, the responsibility to prepare list
of the records, and hand over it as per list to the new secretary shall be of concerned
Chairman, Secretary and Managing Committee.
• If the Managing Committee whose tenure is expired has not handed over the record to the
new managing committee in first meeting, then the Members of that managing committee
shall be liable for action under Section 146 & 147. After such action, the decision to
disqualify them from contesting the election shall be taken by the Registrar of that society.

• It shall be obligatory to keep the record of the society in the office of the
society only. If there is no office of the society, the managing committee
should fix the place for keeping record by making resolution. It shall be
obligatory to keep record in such place.
• The responsibility of maintaining the record of the society in neat and up to
date shall be of Secretary and with him it is the responsibility of the managing
committee also.
• If the members demand for the inspection of the paper of the society/ copies
then it shall be the responsibility of the Secretary to examine under Section 32
and bye-law 23 of the Maharashtra Co-operative Societies Act 1960 and to
issue the copy by taking necessary fee under bye law No. 172.
• The Society may appoint salaried manager for looking after day to day
working of the society. For this the concerned candidate should have obtained
the management diploma in Housing Co-operative Societies proposed by the
Cooperation Department, or should have obtained qualification prescribed by
the office of Commissioner Co-operation. The Society where members number
is 50 or more then such society should appoint a full time manager and other
small societies can appoint manager collectively. The General Body decides
Manager’s working terms, conditions, salary etc.

Various Types of Registers
 Members Register
 Share Register
 Loan Register
 Cash Book
 Receipt and Payment Register
 Ledger Book
 Minutes Book
 Audit Register
 Individual Ledger Book

Members Register
• Member register records the basic information of all the
members of an organization.
• Every organization must keep a record of its members. Such
as name, address, membership number, date of membership
etc. is recorded.
• Features:
 Updated information of each member
 Registration of new members and their information.
 Immediate change of register in case of membership change

Share Register
• The share register records the information about the shares held
by the members.
• According to law a record of shares held by each member of the
organization must be maintained. Issue of share certificates,
price of each share and total number of shares are recorded.
• Features:
 Details of shares held by members.
 Procedure for Distribution of Share Certificates.
 Record of purchase/sale of shares.

Loan Register
• The loan register records the details of loans granted.
• According to law a record of loans given must be
maintained. The borrower's name, loan amount, interest
rate, repayment date and purpose of the loan are recorded.
• Features:
 Complete details of loans granted and repaid.
 Record of loan repayments on time.
 Objective of the loan and its progress.

Cash Book
• A cash register records all cash transactions on a day-to-day
basis.
• According to law a record of daily cash transactions is
required. Cash receipts, cash disbursements, and cash
balances are recorded.
• Features:
 Complete record of daily cash transactions.
 Balance Sheet of Accruals and Expenditure.
 Cash balance and its review.

Receipt and Payment Register
• All receipts and expenditure are recorded in the accrual and
expenditure register.
• According to law all receipts and expenditures are recorded.
It records the technicalities of income and expenditure.
• Features:
 A detailed record of receipts and expenditure.
 Classification of different types of receipts and expenses.
 Useful for financial control.

Ledger Book
• An account register keeps a record of each account holder's
account , their balances , deposits and expenses.
• According to law, each account holder's account , their dues,
deposits and expenses is kept. It is necessary to maintain the
consolidated information of various types of accounts.
• Features:
 Individual account of each account holder.
 A complete record of deposit and expenditure.
 Up-to-date information on arrears.

Minutes Book
• A meeting register records the decisions, attendance, and
deliberations of all meetings .
• According to law Notice, Attendance, and deliberations of all
meetings are recorded. This register is used to record the
meetings of the Institutional Committee.
• Features:
 A complete record of the decisions of the meetings.
 Record of attendance and deliberations.
 Useful information for future action.

Audit Register
• The inspection or Audit register contains the information of
inspection or Audit for each financial year.
• According to law inspection information must be maintained
for each financial year. Inspection report , instructions for
inspection are recorded.
• Features:
 Detailed record of financial audit.
 Inspection report and its recommendations.
 Action taken for inspection.

Individual Ledger Book
• Personal Account Register maintains the personal account
information of each member.
• According to law each member's personal account
information must be maintained. They record the loan taken,
the amount deposited, and the outstanding balance.
• Features:
 Each member's personal account.
 Complete information on loans, deposits, and outstanding balances.
 Review of member's financial status.

Accounting Skills Paper-II (Registers of PACs and Credit Co-operative Societies)

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Accounting Skills Paper-II (Registers of PACs and Credit Co-operative Societies)