Question

what is a cooperative society? state its 3 characteristics​

Answer 1

It is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations to A jointly-owned and democratically controlled enterprise.

Three characteristics are-

open membership

finances and

service motive.

Answer 2

Explanation:

The five basic characteristics of cooperatives are as follows: (1) Organisation of the poor (2) Membership is voluntary (3) Absence of exploitation (4) The role of bank (5) Subsidies.

The scope and meaning of cooperatives has undergone radical change. During the colonial period it was our realisation that peasantry was the most exploited group of people. The industrial pol­icy that the colonial regime had adopted was fatal for small artisans and workers engaged in cotton industry.

Gandhiji realised that if the cultivators were not rescued from the onslaught of industrial develop­ment, the village would be ruined. The plough, therefore, has always been the hope and glory of the people. It was emphasised that the cul­tivators had to be financially assisted to increase their farm product and thus made India self-sufficient.

ADVERTISEMENTS:

The salient features of cooperatives which we identify today are the products of the policy adopted by post-independent India. The Rural Credit Survey Committee in 1951 suggested that the coopera­tives should provide coverage to the rural poor, who have no chance against the vested interests of the landlord-moneylender-trader class. The committee, therefore, recommended that the state government should participate in the share capital of the cooperatives and also pro­vide managerial support and subsidies.

The committee also recommended that the Reserve Bank of India (RBI) should support the movement by way of reimbursement of loans extended by cooperative societies. The committee suggested a three-tier structure of the large-size credit cooperative societies at the base. The district cooperative banks as central financial agencies and at the apex cooperative banks at the state level supported, by the agri­culture division of the Reserve Bank of India.

Thus, on the basis of the above mentioned provisions of coopera­tive societies we give below a few features of cooperative societies:

(1) Organisation of the poor:

Theoretically, the cooperative society has no scope for the membership of the rich. In fact, the major func­tion of a cooperative society is to provide credit facilities to the peasants for productive purposes only. It does not give credit for ful­filling social obligations. Thus, a cooperative society is an association of the poor peasants for meeting their productive needs.

(2) Membership is voluntary:

ADVERTISEMENTS:

Membership to a cooperative society is voluntary. A peasant should assess his needs and accordingly take membership to a particular society. For instance, where a person does not have any cattle or sugarcane crop, why should he be member of a dairy or sugarcane growers cooperative society. A cooperative society has definite objectives and those who find possibility of their objec­tives fulfilled should opt for membership.

(3) Absence of exploitation:

A cooperative society inherently denies exploitation of its members and consumers. Basically, the society takes care of the mutual economic benefits of its own members. In this way, the cooperative society rejects any exploitation which was the basis of the intermediaries.

(4) The role of bank:

The cooperative society cannot leave to itself. The government being welfare-oriented cannot remain a spectator only. It has to intervene and play its role in providing assistance to the peasants. It is on this theory that the RBI and other nationalised banks provide assistance to the cooperative societies. The RBI, being the apex bank, has made provisions for the working of cooperative banks.

(5) Subsidies:

There is an always some risk involved in advancing loans. Sometimes it so happens that due to flood and scarcity the peas­ant is unable to repay the loans. Or it is also possible that the input technology has a price-tag which is beyond the capacity of the peasant to purchase.