Economic Trends in Agricultural Societies (2000-2004)

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Questions and Answers

What is the maximum share capital that an individual member can hold in a society with limited liability?

Rs 5,000

25% of total capital

One-fifth of total capital (correct)

Unlimited

Under what condition can a registered society lend money to another registered society?

Without any restrictions

With approval from the majority of members

With the permission of the Registrar (correct)

Only if it is a cooperative society

What should be the last word in the name of a society registered with limited liability?

Company

Limited (correct)

Society

Association

What type of liability does a society composed mostly of agriculturists have if it is not a registered society?

Unlimited liability Signup and view all the answers

What is the role of the Registrar in the dissolution of a society?

To inspect and inquire before canceling registration Signup and view all the answers

Which of the following is NOT a right of a registered cooperative society?

To lend money to any organization Signup and view all the answers

When does the order of dissolution of a society become effective if no appeal is filed?

After two months Signup and view all the answers

What restriction applies to a member of a limited liability society regarding the interest in shares?

Cannot have shares exceeding Rs 1,000 Signup and view all the answers

What is the main objective of a co-operative society?

To serve the interest of the poorer sections of society Signup and view all the answers

How many members are required to form a co-operative society?

Ten persons above 18 years Signup and view all the answers

What was the total purchase/production and sales value in 2003-04?

388.39 billion and 696.66 billion Signup and view all the answers

What is the nature of the Co-operative Societies Act, 1912?

It is a Central Act, but states have their own laws Signup and view all the answers

Under what condition can a society that aims to lend funds to members not require all members to reside in the same area?

If a registered society is a member of another society Signup and view all the answers

Which two states accounted for almost 50% of credit societies in 2008?

Gujarat and Maharashtra Signup and view all the answers

What does Table 44.1 specifically present?

Year-wise and state-wise number and membership of credit and non-credit societies Signup and view all the answers

What type of society is required to have unlimited liability?

Agricultural credit society Signup and view all the answers

What can an unlimited society do with profits, according to the Act?

Distribute profits with state government permission Signup and view all the answers

How many tables are referenced in the content?

Seven Signup and view all the answers

What type of banks does Table 44.6 focus on?

State Co-operative Agriculture & Rural Development Banks Signup and view all the answers

What should be common among members to form a co-operative society focused on lending funds?

They must share the same tribe, class, caste, or occupation Signup and view all the answers

What is a key principle that co-operative societies operate on?

Self-help and mutual help Signup and view all the answers

Which table presents information about Primary Non-Agricultural Credit Societies?

Table 44.4(B) Signup and view all the answers

What was the purchase/production value in 2000-01?

210.09 billion Signup and view all the answers

Which table contains data on Grain Banks?

Table 44.5 Signup and view all the answers

What was the total working capital of Primary Non-Agricultural Credit Societies in 2003-04?

561.11 billion Signup and view all the answers

How much did the loans issued by Primary Non-Agricultural Credit Societies increase from 2000-01 to 2003-04?

`322.89 billion Signup and view all the answers

What happened to the membership of Primary Non-Agricultural Credit Societies from 2000-01 to 2003-04?

Increased from 184.86 lakh to 193.88 lakh Signup and view all the answers

What was the total working capital of Grain Banks in 2003-04?

`390.13 lakh Signup and view all the answers

What is the extent of liability for members of a co-operative society?

Liability is limited to contributed capital Signup and view all the answers

How did the number of Primary Non-Agricultural Co-operative Banks change from 2000-01 to 2003-04?

Increased from 1987 to 2097 Signup and view all the answers

What was the change in total working capital of State Co-operative Agricultural & Rural Development Banks from 2000-01 to 2003-04?

Increased from <code>172.81 billion to </code>221.70 billion Signup and view all the answers

How does a co-operative society help to eliminate middlemen's profit?

By having members control their own supplies Signup and view all the answers

What trend was observed in the membership of State Co-operative Agricultural & Rural Development Banks from 2000-01 to 2003-04?

Decreased from 6896230 to 1663509 Signup and view all the answers

Which statement is true about the stability of co-operative societies?

They have a fairly stable life Signup and view all the answers

What type of assistance is provided by both Central and State governments to co-operative societies?

Tax exemptions and low-interest loans Signup and view all the answers

What was the total working capital of Primary Co-operative Agricultural & Rural Development Banks in 2003-04?

`142.40 billion Signup and view all the answers

What trend was observed in the membership of credit societies from 2000-01 to 2003-04?

Decreased from 15.29 crore to 13.95 crore Signup and view all the answers

What was the trend for the total working capital of State Co-operative Banks between 2000-01 and 2003-04?

Increased from <code>494.10 billion to </code>608.72 billion Signup and view all the answers

What specific change was noted regarding Primary Agricultural Credit Societies from 2000-01 to 2003-04?

Their number and membership decreased Signup and view all the answers

Which of the following is NOT a characteristic of co-operative societies?

Dependence on sole proprietors for guidance Signup and view all the answers

Study Notes

Working Capital and Loans Data

Total working capital of societies rose from ₹419.13 billion (2000-01) to ₹561.11 billion (2003-04).
Loans issued increased from ₹230.82 billion in 2000-01 to ₹322.89 billion in 2003-04.
Working capital for Primary Non-Agricultural Credit Societies grew from ₹193.49 billion to ₹327.68 billion in the same period.
Loans for Primary Non-Agricultural Credit Societies spiked from ₹120.69 billion to ₹201.96 billion between 2000-01 and 2003-04.

Membership Trends in Credit Societies

Number of Primary Non-Agricultural Credit Societies fell from 0.45 lakh to 0.40 lakh in the same period, but membership increased from 184.86 lakh to 193.88 lakh.
Membership for Primary Non-Agricultural Co-operative Banks declined from 190.02 lakh to 146.99 lakh.
Number of Primary Co-operative Agricultural & Rural Development Banks decreased from 754 to 729 while membership grew modestly from 72.69 lakh to 73.34 lakh.

Financial Health of Societies

Total working capital of Grain Banks increased from ₹296.81 lakh to ₹390.13 lakh despite a decrease in loans from ₹73.52 lakh to ₹59.10 lakh.
Working capital of State Co-operative Agricultural & Rural Development Banks improved from ₹172.81 billion to ₹221.70 billion, even as loans dropped from ₹25.79 billion to ₹19.12 billion.

Co-operative Societies Overview

Co-operative societies facilitate mutual economic interests with aims to serve poorer sections through self and mutual help.
Formation requires at least ten members over 18 with common economic objectives.
Co-operative Societies Act, 1912 provides the legal framework, though many states have their own regulations.

Legal and Operational Characteristics

Co-operative societies can have limited or unlimited liability based on objectives and member composition.
Registered societies can operate with limited liability, providing members legal protection from personal liability for business debts.
Loans can only be issued to members, restricting external financial engagements without special permissions.

Market Impact and Stability

Co-operatives eliminate the profit of middlemen through direct control over their supplies.
Central and State governments provide support in forms of loans, capital contributions, and tax exemptions.
Co-operative societies maintain stability and longevity regardless of changes in membership.

Recent Developments (2000-04)

Total credit societies decreased from 1.43 lakh to 1.21 lakh, with membership falling from 15.29 crore to 13.95 crore.
Non-credit societies dropped from 4.08 lakh to 2.67 lakh, and membership decreased from 6.61 crore to 5.14 crore.
State Co-operative Banks saw an increase in working capital from ₹494.10 billion to ₹608.72 billion despite a decline in loans from ₹304.16 billion to ₹289.62 billion.
Central Co-operative Banks' working capital rose significantly from ₹911.78 billion to ₹1169.31 billion alongside an increase in loans from ₹609.21 billion to ₹624.01 billion.

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Description

This quiz covers the financial changes in Primary Non-Agricultural Credit Societies between 2000 and 2004. It addresses aspects such as working capital, loans issued, and membership statistics. Test your understanding of these economic trends and statistical data.