Question

Short note on role of cooperative societies

Answer 1

Cooperative society have significant role in rural development in India.Cooperative society are formed based on principle of cooperation,equity and sharing of benefits based on patronage.There are many successful cooperatives like IFFCO,AMUL.Sugar cooperatives,cooperative banks and many more.Cooperative society enhances the bargaining power of rural people and increase the risk bearing capacity. Cooperative societies are helping rural people to provide low cost credit,low cost agri inputs,better price of their produce.

Answer 2

Answer:

Ans: i.Members of a cooperative pool their resources for cooperation in certain areas.

ii. These accept deposits from its members.

iii. With these deposits as collateral, the cooperatives obtain a large loan from a bank.

iii. These funds are used to provide loans to its members.