Cooperatives in India Chapter 2

Questions and Answers

Which state in India has the highest cooperative membership as a percentage of its population?

Kerala with 77%.

What is the percentage of cooperative membership in Mizoram?

Mizoram has a cooperative membership of 4%.

How many gram panchayats in India are still not covered by a Primary Agricultural Credit Society (PACS)?

18,497 gram panchayats.

List the four broad domains under which NABARD supports the development of the cooperative sector.

Refinance support, developmental support, policy support, and supervisory role. Signup and view all the answers

Which regions of India have a notably higher percentage of cooperative membership compared to others?

Southern and western regions. Signup and view all the answers

What is the primary purpose of cooperatives?

To realize the common economic, social, and cultural needs and aspirations of their members. Signup and view all the answers

Name two principles that govern the functioning of cooperatives.

Self-help and democracy. Signup and view all the answers

How do cooperatives help mitigate individual risk in economic activities?

By pooling resources and sharing responsibilities among members. Signup and view all the answers

What role do cooperatives play in contributing to rural economies?

They strengthen the rural economy by fostering self-sufficiency and community resilience. Signup and view all the answers

According to Prime Minister Narendra Modi, why is cooperation vital for villages?

It is essential for ensuring self-sufficiency and promoting an Aatmanirbhar Bharat. Signup and view all the answers

What distinguishes cooperatives from other economic models?

Their emphasis on values like equality, transparency, and social responsibility. Signup and view all the answers

Describe the significance of NABARD in the cooperative sector.

NABARD supports and initiates development programs for rural cooperatives. Signup and view all the answers

What is meant by the cooperative scenario in India?

It refers to the current landscape, challenges, and opportunities of cooperative entities in the country. Signup and view all the answers

What are the main purposes of the centrally sponsored schemes for computerization mentioned?

The main purposes are to computerize the PACS and ARDBs to enhance efficiency and service delivery. Signup and view all the answers

Who conducted the study on reforms, restructuring, and innovations in ARDBs?

The study was conducted by NABARD Consultancy Services. Signup and view all the answers

What is the vision behind the National Policy on Cooperation?

The vision is 'Sahakar se Samriddhi', which promotes cooperative-based economic development. Signup and view all the answers

What role does NABARD play in the National Policy of Cooperation?

NABARD provides inputs for the formulation of the draft policy. Signup and view all the answers

What services can be accessed through the PACS as common service centers?

Services include banking, insurance, Aadhaar enrolment, and transport ticketing. Signup and view all the answers

How many PACS have started offering e-services as per the memorandum of understanding?

So far, 35,379 PACS have started offering these e-services. Signup and view all the answers

Which ministries are involved in the memorandum of understanding regarding PACS?

The Ministry of Cooperation and the Ministry of Electronics and Information Technology are involved. Signup and view all the answers

What is the intended impact of the National Cooperation Policy?

The intended impact is to provide an enabling framework for cooperative economic development. Signup and view all the answers

What role do cooperatives play in the rural economy?

Cooperatives serve as a third alternative to free-market and state-owned organizations, providing goods and services while promoting equitable growth. Signup and view all the answers

How does technology adoption affect the market share of cooperatives?

Lack of technology adoption has led to a decline in the market share of cooperatives, undermining their competitiveness in the market. Signup and view all the answers

What is NABARD's initiative for rural cooperative banks?

NABARD is developing a Cooperative Governance Index (CGI) to assess and improve governance standards in rural cooperative banks. Signup and view all the answers

Why is education about cooperative principles important?

Education about cooperative principles is crucial for fostering awareness among members regarding their management, rights, and duties. Signup and view all the answers

What should be included in educational curricula to support cooperatives?

Educational curricula in schools and colleges should include modules on the study of cooperatives to train future cooperators. Signup and view all the answers

How does the cooperative model contribute to sustainable economic growth?

The all-inclusive cooperative model fosters sustainable economic growth by supporting equitable distribution of resources and opportunities. Signup and view all the answers

What are the potential benefits of computerizing PACS and ARDBs?

Computerizing PACS and ARDBs is expected to digitize their operations, leading to improved transparency and efficiency. Signup and view all the answers

What challenges do cooperatives face that need to be addressed by policy planners?

Policy planners must address challenges such as weak technology adoption and lack of member education to strengthen cooperatives. Signup and view all the answers

What legal framework was established in 1904 to support credit cooperatives in India?

The Cooperative Credit Societies Act, 1904 provided the legal basis for credit cooperatives. Signup and view all the answers

What significant recommendation did the Maclagan Committee make about cooperative societies in villages?

The Maclagan Committee recommended that there should be one cooperative for every village. Signup and view all the answers

What role did the Royal Commission on Agriculture play in the cooperative movement in 1928?

The Royal Commission on Agriculture endorsed the establishment of long-term credit to agriculture through LMBs. Signup and view all the answers

Which act led to the establishment of the Agricultural Credit Department by the RBI?

The RBI Act of 1935 required the RBI to set up an Agricultural Credit Department. Signup and view all the answers

In what ways did World War II influence the cooperative sector in India?

World War II accelerated the growth of multipurpose cooperatives for procurement and rationing of goods. Signup and view all the answers

What was a major outcome of the Cooperative Societies Act of 1912?

The Cooperative Societies Act of 1912 allowed for the formation of non-credit societies for various sectors. Signup and view all the answers

What major shift occurred in the governance of cooperation according to the Government of India Act, 1919?

The Government of India Act, 1919 transferred the subject of cooperation from federal to provincial authority. Signup and view all the answers

What did the Mehta Committee recommend regarding cooperative credit societies in 1937?

The Mehta Committee recommended reorganizing cooperative credit societies into multipurpose cooperatives. Signup and view all the answers

Study Notes

Principles of Cooperatives

Cooperatives are people-centric entities aimed at fulfilling common economic, social, and cultural needs.
Key principles include self-help, self-responsibility, democracy, equality, transparency, and social responsibility.
Cooperatives empower individuals to collectively pursue goals, reducing personal economic risk.
They are vital for enhancing rural economy self-sufficiency in India, contributing to the vision of ‘Aatmanirbhar Bharat’.

History of the Cooperative Movement in India

Significant milestones include the Cooperative Credit Societies Act of 1904, which provided a legal framework for credit cooperatives.
The 1912 Cooperative Societies Act expanded the scope to include non-credit cooperatives for various trades.
The Maclagan Committee in 1915 advocated for complete village coverage by cooperatives and proposed a three-tier credit structure.
The Government of India Act 1919 shifted cooperation governance from federal to provincial levels.

Constitutional Framework of Cooperatives in India

Cooperatives are governed by a series of acts and policies aimed at promoting cooperative structures at various levels.
The movement has been influenced by several government committees and commissions that sought to enhance cooperative functioning.

Indian Cooperatives in the Global Context

Indian cooperatives provide a balanced alternative to both free-market and state-controlled economic models.
They support equitable economic growth, especially in rural areas, contributing to India's overall economy and employment.

Cooperative Scenario in India

Membership varies geographically; Kerala has the highest cooperative membership (77%) while Mizoram has the lowest (4%).
Despite growth, areas like 18,497 gram panchayats lack access to primary agricultural credit societies (PACS), prompting government initiatives for coverage.

NABARD’s Mandate of Supporting Rural Cooperatives

NABARD's core mission focuses on developing rural institutions, including cooperatives.
This includes providing refinance, developmental, policy, and supervisory support to strengthen the cooperative sector.
Initiatives encompass computerization schemes for PACS and Agricultural and Rural Development Banks (ARDBs) to enhance efficiency.

NABARD Initiatives in Develop the Cooperative Sector

Various centrally sponsored programs aim to provide essential services through PACS, with over 35,000 PACS already operational in offering e-services.
Inputs from NABARD are critical for drafting the National Policy on Cooperation, focusing on cooperative-based development.

Way Forward

Addressing technological deficiencies is crucial to reviving cooperatives and improving their market presence.
NABARD aims to develop a Cooperative Governance Index (CGI) to enhance governance in rural cooperative banks.
Emphasis on education about cooperative principles and management is essential for building future leaders in the cooperative sector.

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Explore the key principles and historical context of cooperatives in India with this comprehensive quiz. Learn about the constitutional framework, the role of NABARD, and the overall cooperative scenario in both national and global contexts. Test your knowledge and understand how cooperatives can tackle challenges and build opportunities in rural development.