Cooperative Banking Literature Review

1.15: Review of Literature

While evaluating the performance of UCBs, it is imperative to take review of relevant earlier literature, with a view to identify and understand the aspects relating to UCBs. Various stages of development of co-operative banking in general and UCBs in particular are required to be briefly discussed at this place.

It is evident that the cooperative movement in India is a leading movement in the world and among various sectors of cooperative movement; banking has recorded the fastest growth, since submission of All India Rural Credit Survey Committee (AIRCSC) Report 1954. Cooperative banking has survived and developed oscillating through a number of hurdles since its inception till date. Despite its impressive growth

(1996) 5 has explained the overall position of UCBs operating in Gujarat in general and in Vadodara district in particular. He observed that UCBs have succeeded in improving the standard of living of their members. He highlighted certain innovative schemes launched by UCBs for their members namely Jiwan Dhara Pension Scheme, Education Fund Scheme, Medical Fund Scheme, and Dhanya Wattap Yojana in which loans are provided for purchasing food-grains at the time of harvesting. He found that some UCBs take care of their members even after their death by providing financial help to meet the expenses of rituals. Such an intimacy has naturally attracted the people to shift their preference from commercial banks to UCBs. The UCBs have succeeded to attract the deposits of urban people more than commercial banks did. Some UCBs initiating compulsory saving deposits for members have broadened their deposit base. They have promoted the people for daily saving and accordingly they have made arrangements to collect the amount from the residence of depositors. The application of Deposit Insurance Scheme to UCBs has further enhanced the trust of urban people in UCBs. The intimate relations with the banks have helped the members to get timely and sufficient credit from

B. (1985)8 has observed that some UCBs have violated the RBI regulations U/S 12(2) (b) regarding providing loans to priority and weaker sector; instead they have highly concentrated on loans against gold. He suggested that UCBs should strive to provide a wide range of banking services to their customers with all desirable facilities. With the active participation of every staff and member of the Board of Directors, the loan recovery system should be