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GENERAL COOPERATION PAGE

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. Co-operation is derived from the Latin word MAT 1

'CO-OPERARI'
. 'Co' means with and 'OPERARI'means to
work
. Industrial revolution and mercantile
economy are the reasons for the birth of Co-
operation .
. Co-operation is guided by the principle 'each
for all and all for each.
Co-operation is the equalizer between
capitalism and socialism
.The basic idea behind co-operation is self-
help and mutual help.
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. The main objective of Co-operation is to PAGE

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provide service to its members. EFOR
MAT 1

. In co-operative societies members are

treated as equal.
. Co-operation is a universal movement found
in all countries.
.One man one vote is the basic principle of Co-
operation.
. Co-operative day is celebrated every year on
first Saturday of July.
. Co-operative day was celebrated from 1923
July 7
.UN celebrated co-operative day from 1995
. Co-operative week is celebrated from
November 14-20
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.First co-operative week celebration was in PAGE

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1954 EFOR
MAT 1

. International year of Co-operation is

celebrated in 2012
. 85th co-operative week was celebrated in
2018
OBJECTIVES
. Elimination of middlemen
. Abolition of capitalism
. Raising economic status and moral standards
of members
. Political and religious neutrality
ECONOMIC STATUS
a. CAPITALISM
. Oldest economic system
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.Based on the theory of 'Survival of the fittest'

PAGE
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.Profit is the main motive MAT 1

. Concentration of wealth in the hands of a

few

b. SOCIALISM
.State is supreme
. Surplus goes to the state
.Eliminates all exploitations
. Individual freedom will be restricted
b. COMMUNISM
.Extreme form of socialism
.Stands for a revolutionary change in
economy
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EVOLUTION AND DEVELOPMENT OF CO-OPERATIVE PRINCIPLES

CO-OPERATIVE PRINCIPLES

Set of rules which governs the life and activity of co-operative Institutions.

Way of organizing and conducting Co-operative activity

Co-operative Principles were firstly developed by the Rochdale Pioneers

Co-operative Society in 1860.

ROCHDALE PRINCIPLES-FIRST STAGE

Rochdale principles-First Stage (1860)

The Co-operative Principles were firstly developed by the Equitable Pioneers of

Rochdale in 1860.

▪ Open Membership

Democratic Control

Limited Interest on Share Capital

Patronage Dividend

Political and Religious Neutrality

Cash Trading

Promotion of Education

Selling Pure and Unadulterated Goods

Second Stage (1934-1937)-Paris

➢ ICA adopted Co-operative Principles from Rochdale Pioneers.

In 1934 ICA appoint a committee to evaluate the Principles

ICA firstly accepted the Co-operative Principles in 1937

The Committee classify the Principles into two:

 a) Essential

b) NonEssential

a) Essential

➢ Open Membership

• Democratic Control

• Limited Interest on Share Capital

• Patronage Dividend

b) NonEssential

Political and Religious Neutrality

• Cash Trading

• Promotion of Education

• Selling Pure and Unadulterated Goods

Third Stage (1964-1966)-Vienna

Again in 1964, the ICA appointed a Commission in 1964.

Prof DG Karve was the Chairman of the Commission

The commission Submitted its report in 1966 by recommending the

following Principles:

Open and Voluntary Membership

• Democratic Management

• Limited Interest on Share Capital

• Equitable Distribution of Surplus

• Co-operative Education

• Co-operation among Co-operatives (Karve’s Principle/Principle of Growth)

Fourth Stage (1995)-Tokyo

Tokyo Congress held in 1992 recommended ICA to Initiate steps to review

the current ICA Co-operative Principles in 1966

Based on this ICA direct Dr Ivan Mac Person to review the Co-operative

Principles in 1994

He submitted the report in 1994 and the same is approved by ICA General

Assembly in Manchester in 23 September 1995

Voluntary and Open Membership

Democratic Member Control

Member Economic Participation

Autonomy and Independence

Education, Training and Information

Co-operation among Co-operatives

Concern for Community

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Co-operative Principles PAGE

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.Latin word Principium (basis) MAT 1

.guidelines
. Development of Co-operative principles - 4
stages.
a) Rochdale Principles
b) ICA principles
c) Karve Committee Co-operative principles
d) Co-operative principles by ICA in 1995
Rochdale Principles
a) Open membership
.No discrimination
.voluntary organisations
b) Democratic Control
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. Importance of members PAGE

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. Supreme authority general body MAT 1

.Day today activities maintained by Board of

management
.One man one vote
c)Limited interest on share capital
d) Patronage dividend
e) Cash trading
f)Political and Religious neutrality
g) Promotion of education
h) Selling pur and unadulterated goods
ICA Principles
. Divided Rochdale Principles into essential
and non essential.
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Karve Committee on Co-operative principlesPAGE

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.Karve Committee on 1964 MAT 1

a) Voluntary and open membership

b) Democratic Control
c) Limited interest on share capital
d) Patronage dividend
e)Promotion of Co-operative education
f) Co-operation among
Co-operatives
[07/02, 12:41 am] Anjitha Ashok: Karve
Committee
.5 countries - UK,USA,USSR, Germany and
India
. Chairman - D G Karve
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,1964 PAGE
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CO-OPERATIVE PRINCIPLES by ICA in 1995 MAT 1

a. Voluntary and open membership

b.Democratic member control
c.Member Economic Participation
d. Autonomy and independence
e. Education, training and information
f.Co-operation among Co-operatives
g. Concern for community
Questions
1. The word 'co-operation' is derived from
the Latin word ______
Co-operari
2. Robert Owen born on ___.
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1771 PAGE
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MAT 1

3. Linking of credit with marketing is

connected with which principles?
Co-operation among Co-operatives
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4. Theme for international co-operative day isPAGE

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decided by _____. EFOR
MAT 1

COPAC
5. Last added principle ____.
Concern for community
6. ICA flag was suggested by ____.
Bernard Dott
7. Karve Committee submitted its report in
___
1964
8. How many stages are there in the
development of Co-operative principles?
four
9. "Co-operation is a universal instrument"
who said this?
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Horace Plunkett PAGE

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10. The co-operative principles are the MAT 1

fundamental rules that determine the ____ of

the organization.
Character or nature
11.____ is also called mutuality
Co-operation among Co-operatives
12. In general assembly of ICA , the maximum
representation from a country is limited to
___.
20
13.The fundamental rule that determines the
character of Co-operative Organisation:
Co-operative principles
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Co-operation

Co-operation is as old as humanity and co-operation is older than cooperative movement. More than 60% of
the credit needs of farmers are met by co-operative societies.

The word “Co-operation” is derived from the Latin word ‘Co-operari’ which means to ‘work together’. Union
is ‘strength’ and hence they associate together to achieve the common and through self help and mutual help.
They are guided by the principle “each for all and all for each”.

Economically a co-operative society is a business organization. Legally it is a legal personality and socially it is a
social asset.

Definition of co-operation

A system of business which gives importance to members rather than capital is known as Co-operation

Co-operation has territory, population, government, and sovereignty and so co-operation is called State within
a state.

Self help made effective by organization is a co-operative society. It is an equalizer between capitalism and
socialism. Co-operation is the miracle of last century. The Chief objective of a Co-operative Society is providing
service to its members. The basic idea behind co-operation is self help and mutual help.

Important points:

1. Democratic control is the principle of co-operation.

2. One man one vote is the basic principle of co-operation
3. Co-operation is a universal Government found in all countries of the world
4. Mainly three types of Co-operation Rochdale system, Raiffeisen system and Schulz system.
5. Co-operation is a result of Industrial revolution.
ICA (International cooperative Alliance

ICA refers top International Co-operative Alliance. It is a worldwide confederation of Co-operative

organization. It was founded by international Co-operative congress held at London in 1895. The head office of
ICA was in London till 1982 and now the head office is at Geneva in 2013 Head quarters was shifted to
Brussels in Belgium. It now has 203 affiliated bodies in about 82 countries. The main source of income of the
ICA is contribution from member organization.
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Administration of ICA

1. General Assembly
Consist of delegates from affiliated organisation one country can send maximum 20 person. A
president and two Vice president and an Executive Committee can be elected.

2. Executive Committee
It exercise’s general control over the affairs.

3. The Director – the Secretariat is head by a director

4. General Secretary – is the representative of member organisations.

ICA has four regional offices

1. Asia and pacific Regions

2. West Africa
3. East central and South Africa
4. Central America

Co-operative

Co-operatives are people centered enterprise owned, controlled and run by and for their common economic
social and cultural need and aspiration. Co-operation bring together in a democratic and equal way.

The sectoral organisation of ICA

ICAO:- The international co-operative Agricultural organisation. To promote mutual understanding and
economics collaboration between the agricultural co-operatives and other co-operatives.

ICBA:- International co-operatives Banking Association is a global organisation for co-operative banks.

CCW:- Consumer co-operatives World wide is a global organization for consumer owned co-operatives.

IFCO:- The international Co-operatives Fisheries organisation is a global organisation for co-operatives in
fishing sector.

IHCO:- The international Health Co-operative organisation is a global Co-operatives in the Health care sector.

ICA Housing:- is a global organisation for housing co-operatives.

ICMIF :- The international co-operative and Mutual insurance Federation is a long established and unique
global Trade association representing co-operative and mutual insurers around the world
 Page | 3

Co-operative principles

Different stages – Development of co-operative principles

1. Rochdale principle (first stage) 1844

2. ICA – Co-operative principle (second stage) 1937
3. Karve committee on co-operative principle (third stage) 1966
4. Co-operative principle by ICA (Final stage) 1995

1. Rochdale principle are as follows :

a. Open membership
b. Democratic Control
c. Limited interest on capital
d. Distribution of surplus to members in proportion to their transactions
e. Political and religious neutrality
f. Cash trading
g. Promotion of education
h. Selling pure and unadulterated goods
ICA Co-operative principles 1937 second stage ICA. In 1937 at Paris Congress principle.

Based on the report ICA classified Rochadale principles into essential and non-essential principles

Essential Principles

1. Open membership
2. Democratic control
3. Limited interest on share capital
4. Patronage dividend
5. Political and religious neutrality
Non-Essential Principles

6. Cash trading
7. Promotion of Education
8. Selling pure and unadulterated goods
KARVE COMMITTEE ON CO-OPERATIVE PRINCIPLES 1966 (3rd Stage)

The first four of Rochdale principles were adopted as co-operative principles in Karve committee report and as
5th promotion of co-operative education was added.
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ICA appointed the Committee in 1966 Representative were 5 nations – USA, UK, USSR, Germany, India

Chairman – D.G.Karve (India). Report was submitted in 1966 at Vienna Congress.

The Principles were

1. Open and Voluntary membership

2. Democratic control
3. Limited interest on share capital
4. Equitable distribution of surplus
5. Co-operative Education
6. Co-operation among Co-operatives (is also known as principle of growth and Karve’s principles)
The above principles were again reconstructed by ICA to lead the Co-operative movement to the new
millennium.

ICA – Co-operatives principle 1995 – FINAL STAGE

ICA Tokyo congress held in 1992, asked to Dr.Ian Mac person to review the principle 1966. And Report
submitted in 1994. ICA general assembly approved the new principles given by Ian Mac person on
September 23, 1995 at Manchester Congress.

The principles are:

1. Voluntary and Open Membership

2. Democratic member control
3. Member economic participation
4. Education, training and information
5. Autonomy and Independence
6. Co-operation among co-operatives
7. Concern for community

1. Voluntary and Open membership

Voluntary and open membership means there is a free entry as co-operators people must be given
chances to study and understand co-operative aims and objectives and they must be allowed to
participate inn the working of the Society with a free mind.
2. Democratic member Control
Members have democratic rights as well as democratic responsibilities. This is the real spirit of
democracy that should be in the minds of co-operative. The control is also through a democratic way
so as to avoid one man’s rule.
 Page | 5

3. Member economic participation

Member should contribute to the Capital equitably and should receive only small returns. Capital
should not be the commanding factor. It is only a servicing factor.

4. Education, training and information

The Rochdale principles upheld the promotion of general education of members. The ICA emphasized
that members, elected representatives and employees should be aware of the in thought and action.
They should be given training at selected centres
To make sure that they are capable of discharging their duties and responsibilities.

5. Autonomy and Independence

In almost all countries, co-operative societies are registered and governed. According to co-operative
law and legislations. Co-operatives are functioning within the legal frame work. Thus, government may
be helpful or harmful to the societies. The New millennium Societies should be vigilant to keep up their
autonomous nature. They must be free from all ties and tags.

6. Co-operation among Co-operatives

This principles is to strengthen movement. A country wide network should be designed for mutual help
and service between all co-operative societies. Co-operative Society should enter into joint ventures to
protects the interest of its members.

7. Concern for community

The primary function of a co-operative society is to protect the interest of its members residing in a
limited area. They should associate within the welfare of the community as a whole in a specified area.
Environmental protection us also necessary for the interest of the community.
 Page | 1
1. NATIONAL COOPERATIVE WEEK

 National cooperative week is celebrated every year all over the India from 14th of November to
20th of November
 The national cooperative week is a weeklong celebration during which the cooperative societies
take part to increase the public awareness by organizing the events like debates, seminars,
discussions and etc.

Purpose of National Cooperative Week

 National Cooperative Week is celebrated every year throughout the India to increase the
awareness among general public about the important roles of this event in the Indian society.
 It is organized yearly by cooperating all the Indian societies to make aware the people about the
Indian economic model.
 A lot of activities like debates and seminars are organized while celebrating this event in order to
assess the development, crisis as well as highlight the immense achievements in the economy.

2. CO-OPERATIVE FLAG
 A seven-colour rainbow flag is a common symbol of the international cooperative movement
 The rainbow flag has been the cooperative emblem since 1921 when the International Co-
operative Congress of World Co-op Leaders met in Basel, Switzerland to identify and define the
growing cooperative movement’s common values and ideals to help unite co-ops around the
world
 Professor Charles Gide, suggested using the seven colours of the rainbow for the flag.
 The first co-op rainbow flag was completed in 1924 and was adopted as an official symbol of the
international cooperative movement in 1925
 In 2001, the ICA's official flag was changed from a rainbow flag to a rainbow logo flag on a
white field, to clearly promote and strengthen the cooperative image, but still use the rainbow
image. .
 This flag is a symbol of hope and peace.
 The seven colours from flags around the world fly in harmony

Meaning of seven colours

Red: stands for courage
Orange: offers the vision of possibilities;
Yellow: represents the challenge that greed has kindled;
Green: indicates a challenge to co-operators to strive for growth of membership and of
understanding of the aims and values of co-operation
Sky blue: suggests far horizons, the need to provide education and help less fortunate people and
strive toward global unity.
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Dark blue: suggests pessimism: represents the less fortunate who can learn to help themselves
through co-operation.
Violet: is the colour of warmth, beauty, and friendship

3. COOPERATIVE JOURNAL
 The healthy progress of cooperative movement in Kerala is the main lookout of the KSCU. It is
the agency to undertake and implement all the training and educational programmes in world
cooperative movement. The name of the magazine published by it is “The Cooperative Journal”.

 The department of cooperation is also having a monthly publication by name “Sahakarana

Veedhi”.
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ICA PAGE
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. International Co-operative Alliance MAT 1

.Apex organisation for co-operatives.

.An independent, non-governmental
organisation that unites, represents and
serves co-operatives
. Established on 18th August, 1895
.Head quarters: Brussels ( Belgium)
. ICA acts as the custodian of Cooperative
values and principles around the world.
.ICA members are international and national
co-operative organisations from all sectors of
the economy including agriculture, banking,
consumer, fisheries, health,housing,industry,
insurance and tourism.
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.312 organisations from 109 countries are PAGE

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MAT 1

.Supreme authority of ICA - General Assembly

. General Assembly held once in every year
.ICA financial year- January 1 to 31st
December.
. Quarterly publication of ICA - ICA Bulletin
. Co-operative trade directory is published by
ICA
.ICWS ( International Co-operative Wholesale
Society) was established by ICA
.ICA consists of a governing board, a general
assembly, 4 regions and 8 sectoral
organisations .
. ICA is organised to 4 regions:
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a) Europe (Brussels) PAGE

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b) America ( Sanjose)(1990) MAT 1

c) Africa ( Nairobi)
d) Asia-Pacific (New Delhi)(1960)
.ICA ROAP ( Regional Office for Asia and
Pacific) started in 1960 with head office at
New Delhi
.ICA ROAP was inaugurated by Jawahar Lal
Nehru
.Bonow house is related to ICA ROAP
. First meeting of ICA held at London in 1892.
. Established in 1895 with head office at
London
.In 1982 head quarters was shifted to Geneva
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.In 2013 Head quarters was shifted to Brussels PAGE

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ICA
.Non governmental co-operative federation.
. First President - Earl Gray
.First woman President Dame Pauline Green
. ICA is the only one International Institution
which served in the First and second world
war .
.First Secretary of ICA - Edward Owen
Greening
.First ICA executive member from India :
Ramdas Pantalu
. ICA present President: Ariel Guarco
(Argentina)
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." The Argentine Cooperative Movement -A PAGE

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hopeful Look into the future" by Ariel Guarco
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MAT 1

.Last General Assembly - June 20, 2022 in

Seville, Spain hosted by the Spanish
Confederation Worker Co-operatives (
COCETA)
.Theme of last general assembly - " Co-
operatives : the time is now"
. Sectoral organisations of ICA :
a) ICAO: The International Co-operative
Agricultural Organisation (ICAO)
b) ICBA: The International Co-operative
Banking Association
c) CCW: Consumer Co-operatives Worldwide
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d) IFCO: The International Co-operative PAGE

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Fisheries Organisation EFOR
MAT 1

e)IHCO: The International Health Co-operative

Organisation
f) ICA Housing
g) ICMIF: The International Co-operative and
Mutual Insurance Federation
h) CICOPA : The International Organisation of
Industrial, Artisanal and Service Producers
Cooperatives
.Audit and control committee monitors the
financial situation of ICA
.EV Neal is closely associated with the forming
of ICA commission
.ICA Thematic Committees:
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a) ICA GEC The Gender Equality Committee PAGE

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b)ICACCR: The ICA Committee on Co- MAT 1

operative Research
c) ICACC: The ICA Communications committee
d) The ICA youth network
Indian members :
a) NCUI
b)NAFED
c)Uralunkal Labour Co-operative Society
.Seven Principles of ICA:
a) Open and Voluntary membership
b) Democratic Member Control
c) Members' Economic Participation
d) Autonomy and Independence
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e) Education,Training and Information PAGE

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f) Co-operation among Co-operatives MAT 1

g) Concern for community

. Concern for community is the latest addition
to co-operative principles
.Co-operative principles were firstly
developed by equitable pioneers of Rochadale
in 1844
. Co-operative principles now in force were
accepted in 1995
.Co-operative Flag
.Designed in 1921
.Instituted in 1923
.Hosted in 1924
.Adopted in 1925
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.Charles Guide designed the flag PAGE

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.Length 3:2 MAT 1

.Number of strips in the flag: 6

.Flag denotes 'Unity in Diversity '
.Red at top and violet at bottom.
COOP MARQUE 2013
.Global mark for Cooperatives was introduced
by the ICA in 2013 was 'coop'
 Page | 1
IMPORTANT YEARS OF INTERNATIONAL COOPERATIVE MOVEMENT
SL. NO YEAR IMPORTANCE
1. 1771 Birth of Robert Oven
2. 1772 Birth of Charles Fourier
3. 1793 Friendly societies Act England
4. 1808 Birth of Schulz
5. 1818 Birth of F W Reiffeisen
6. 1828 Co-operator was published by William king
7. 1844 Rochdale pioneer’s society started
8. 1850 Schulz society Germany started
9. 1852 Industrial provident societies Act England
10. 1854 Birth of Horace Plunket
11. 1854 Heddesdort Society in Germany was organized by FW Reiffeisen
12. 1861 German industrial society by Schulze
13. 1862 Reiffesen society Germany started
14 1863 CWS co-operative whole sale stores started
15. 1868 Co-operative movement in Germany started
16. 1870 Co-operative movement in Canada started
17. 1877 Reiffeisen societies union Germany started
18. 1879 Consumers cooperative movement in japan started
19. 1882 Co-operative movement in Denmark started
20. 1883 Co-operative movement in Italy under leadership of Wollen Berg started
21. 1886 Co-operative movement in Italy under leadership of Luzzatti started
22. 1889 Co-operative movement in Ireland started
23. 1895 ICA started with headquarters at London
24. 1900 First co-operative law in Japan
25 1917 Co-operative Farming started in Russia
26. 1919 Co-operative movement in China under leadership of Sun yat sen started
27. 1923 Co-operative Flag was adopted by ICA
28. 1937 ICA co-operative principles were accepted
 Page | 2
29. 1948 Consumers livelihood co-operative society law in Japan enacted
30. 1951 JCCU-Japanese co-operative consumer Union established
31 1964 ICA commission appointed to reformulate co-operative principles
32. 1966 Re formulated co-operative principles were accepted by ICA
33. 1982 ICA head-quarters shifted to Geneva
34. 1995 ICA centenary congress at Manchester
35. 1995 ICA accepted reformed co-operative principles
36. 1995 UNO started celebrating International co-operative day
37. 2001 The new flag was approved by ICA
38. 2012 International year of co-operatives by UNO
39. 2013 ICA approved new Logo COOP
40 2013 ICA head quarters shifted to Brussels
 Page | 1

COOPERATIVE MARKETING
Definition:-

According to RBI, “Co-operative marketing is a co-operative association of cultivators formed for the purpose
of helping members to market their produce more profitably than is possible though private trade”.

Structure of Marketing Cooperatives

The super structure of cooperative marketing consisted of the National Agricultural Cooperative Marketing
Federation (NAFED) at the all India level, State Marketing Cooperative Society in a state, Dist. Marketing Co-
operative Society in every district and Primary Marketing Co-operative Society at the Taluk level

Objectives of Co-operative Marketing Societies

1. To sell the member‟s products directly in the market that offers best price. 2. To improve economic
conditions of produce by strengthening its bargaining power.

3. To help members to produce the best product and those in most in demand

4. To establish fair trade practices and prevent manipulation of prices.

5. To help farmers to obtain finance at cheaper rate of rate interests.

6. To give the farmers a better understanding of all stages of marketing process.

Kerala Co-operative Milk Marketing Federation Ltd (KCMMF-MILMA)

 KCMMF was formed in 1980 as a state adjunct of the National Dairy Programme ‘Operation Flood’

 It is a three-tiered organization

 At the apex level KCMMF functions from the headquarters at Thiruvananthapuram.

 Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called „MILMA‟ was established

in April, 1980 with is head office at Trivandrum for the successful implementation of „Operation Flood‟

Programme in Kerala.
 Page | 2
Objectives of KCMMF (MILMA)

1. To channelize marketable surplus milk from the rural areas to urban deficit areas to maximize the

returns to the producer and provide quality milk and milk products to the consumers

2. To carryout activities for promoting Production, Procurement, Processing and Marketing of milk

and milk products for economic development of the farming community.

3. To build up a viable dairy industry in the State.

4. To provide constant market and stable price to the dairy farmers for their produce

National Agricultural Cooperative Marketing Federation (NAFED)

 The National Agricultural Cooperative Marketing Federation (NAFED), established in 1958 has been
playing an important role in the development of cooperative marketing in the country.
 It functions as a coordinator in the cooperative marketing set up, both for internal trade as well as in the
export market

The main objectives of NAFED are:

 To co-ordinate and promote the marketing and trading activities of its affiliated cooperative
institutions;
 To make arrangements for the supply of the agricultural inputs required by memberinstitutions;
 To promote inter-state and international trade in agricultural and other
commodities
 To act as an agent of the government for the purchase, sale, storage anddistribution of agricultural
products and inputs.

National Co- operative Development Corporation (NCDC)

 It was setup in 1963 by the Central Government by passing NCDC Act in 1962.
 The major thrust areas financed by NCDC include agro-processing, agro-marketing, integrated
cooperative Development Project (ICDP) focusing on micro-level co-operatives, consumer co-
operatives, coir, Handloom and promotion of information technology in the cooperative sector

Role and Functions of NCDC:

 Page | 3
1. To provide loans and grants to various co-operative societies.
2. To utilize the National Co-operative Development Fund for various development activities of co-
operative societies.
3. To provide technical facilities to agricultural co-operative society through respective state
governments.
4. To participate in the share capital of the different co-operatives societies working at the national
level.
5. To develop co-operative fields like processing, warehousing, import-export of agricultural
commodities etc.
6. To assist state government in Human Resource Development.
7. To provide funds to State Governments for financing co-operative societies for the purchase of
agricultural produces and food stuffs.
8. Plan and promote programmes through cooperative societies for the supply of seeds, manures,
fertilizers and agricultural implements.
9. Provide outright grant to cooperative credit institutions towards their special bad debts reserve.
10. Help the long term credit institutions through purchase of debentures floated by them.
• Short term or middle term credit structure
• NAFSCOB,KSCB,
 • NAFSCOB (1964)
• NATIONAL FEDERATION OF STATE COOPERATIVE BANK
LIMITED
• Headquarters Mumbai 19 may 1964
• national level organization of state cooperative Bank in India
• publications - NAFSCOB bulletin, NAFSCOB journal
• On 01/01/1976 NAFSCOB affiliated to ICA board consists of 21
members
• AIMAS

• all India mutual arrangement scheme

• introduced in 1965 associated with NAFSCOB
• Thanjavur Central cooperative Bank limited has got the annual
AIMAS best performance award from NAFSCOB for 3 times
• one malayali who become the chairman of NAFSCOB was K.R
Aravindakshan
 • KSCB (1956)KERALA STATE COOPERATIVE BANK
• Registered on 1915 functions as kscb on 1/11/1956
• Hq – TVM
• Apex Bank of three tier cooperative credit structure
• Only apex Bank in Kerala
• first core banking facility introduced in cooperative sector
• Act as balancing centers for Central cooperative Bank
• the chief executive of the bank is MD in the rank of IAS officer
• KSCB situated in CO-BANK TOWERS
• functioning as a clearing house in cooperative sector
• Kerala state cooperative Bank maintain the principal state partnership fund
received from state government
• Regional offices Trivandrum Ernakulam Kozhikode
• First scheduled cooperative bank in India only scheduled cooperative bank in
Kerala
• Kerala state cooperative Bank become scheduled bank in July 1
1966
• KSCB got banking license in 1974
• Board consists of 21 members
• MASK is introduced by Kerala state cooperative Bank in 1969
• mask- mutual arrangement scheme Kerala
• KSCB is a member of AIMAS
• executive committee of Kerala state cooperative Bank consists
of nine members
• ACSTI - Manila @ TVM- 1992
• 💠 Samridhi card
• connecting link between money market and cooperative sector
• Connecting link between NABARD and cooperative credit
instrument
• Known as keystone in the history of cooperation
• most of borrowings of Kerala state Co-Operative Bank is from RBI
• first Central cooperative Bank affiliated to KSCB- Malabar Central
cooperative Bank
• Education fund is deposited in Kerala state cooperative Bank
• First president Padmanabha Iyyer
• DCB
• 2(ia)
• Area of operation -one revenue District
• Subsidiary state partnership fund (section 45)
• district cooperative Bank are also known as Central
cooperative Bank
• chief executive officer of district cooperative Bank is general
manager
• DCB open branches with the permission of the registrar
• minimum involvement scheme is related with DCB and it is
fixed by NABARD
• the first DCB in Kerala provided ATM facility was Ernakulam
DCB
• EV kumaran committee was appointed to study about the
functions of DCB in Kerala

• first woman president of DCB in Kerala P.Sathi Devi

• The act which facilitate Central cooperative Bank in India

cooperative societies act 1912
• PACS
• Primary agricultural credit society
• Definition 2 ( oaa)
• area of operation- village ,panchayat or municipality
• members are individual
• loan provided only to members
• accept deposit from members and non-members
• chief executive of the society is secretary
• PACS include service cooperative Bank regional cooperative
Bank rural Bank, FSCB
• annual credit limit statement or credit limit statement is
prepared by PACS
• period of credit limit statement is three years
• linking of credit with marketing help the PACS to reduce over
due
• in PAC scale of finance is fixed by DCB
• open branches with the permission of RCS
• interest rate for the deposit of PAC'S are fixed by registrar
• Related terms of PACS

• 💠 Agricultural credit stabilization fund

• 💠member relief fund
• 💠 bad debt reserve
• 💠 credit limit statement
• 💠Kettuthengu system
• 💠 double lock system
• 💠 crop loan system
• URBAN CO.OPERATIVE BANK
• Sec 74(A) of kcs act deal with insured cooperative banks (UCB)
• All cooperative banks are not insured bank but urban banks is
an insured bank
• Single tier
• CEO of Urban bank- general manager
• CEO of Urban society- Secretary
• Cooperative Urban Bank main fluid resource as per the rate
specified by RBI
• RBI has the power to supervise and inspect urban
cooperative banks
• 1st urban co operative Bank in India Kanjeevaram -Tamil Nadu
• Madhavadas committee - UCB
• Founder of Urban Bank in the world – Schultz
• first Urban Bank formed in Germany
• urban cooperative Bank single tier
• urban co operative society 2 tier

• 💠 Common man's Bank brightest spot romance on

cooperation
 Page | 1
IMPORTANT COMMITTEES, YEARS AND CHAIRMAN
Sl.no. COMMITTEE NAME APPOINTED BY HEADED BY YEAR OF REPORT
APPOINT YEAR
MENT
1. Working of cooperative credit MADRAS GOVT FEDRICK NICHOLSEN 1892 1895
societies
2. Law commission British govt. Sir Edward law 1901 1904
3. Committee on co-operation British govt E.D.MACLAGAN 1914 1915
4. Royal commission on Govt. of India H.Calvert 1926 1928
agriculture
5. Committee on co-operative MADRAS GOVT TOWN SEND 1927 1928
progress
6. Co-operative planning BRITISH GOVT R. G. SARAIYA 1945 1946
committee
7. All India rural Credit survey RBI A D GORWALA 1951 1954
Commmittee
8. Co-operative Law committee GOVT OF INDIA S.T.Raja 1956 1956
9. One village one society team Govt of India M l darning 1957 1958
10. Committee on co-operative GOVT OF INDIA V L MEHTA 1959 1960
credit
11. Committee on consumer co- GOVT OF INDIA P NATESHAN 1960 1960
operatives
12. study TEAM ON CO- GOVT. OF INDIA S D MISRA 1961 1961
OPERATIVE training
13. Committee on taccavi loans GOVT OF INDIA B P PATEL 1961 1962
14. Committee on Co-operative VAIKUNTALAL MEHTA 1963
administration
15. Committee on co-operation GOVT OF INDIA R N MIRDHA 1965 1965
16. Committee on co-operation GOVT OF INDIA DANTWALA 1965 1965
17 All India rural credit review RBI B VENKITAPAIH 1966 1969
committee
18. Banking commission GOVT OF INDIA R C SARAIYA 1969 1972
19. National Commission on RBI R N MIRDHA 1971 1976
agriculture
20. Committee on land RBI K. MADHAVADAS 1973 1973
Development bank
21. Committee on co-operative GOVT OF INDIA M.S. SWAMINATHAN 1973 1974
education and training
22 Study team on overdue RBI C D DQTEY 1974 1974
23. Committee on integration of RBI R K HAZZARI 1975 1976
cooperative credit
24. Committee on urban co- RBI MADHAVAADAS 1977 1978
operative banks
25. CRAFICARD RBI B SIVARAMAN 1979 1981
26. Agriculture credit review RBI A M KHUSRU 1986 1989
committee
27. Committee on model co- PLANNING BRAHMAPRAKASH 1990 1991
operative act COMMISSION CHOUDHARY
 Page | 2
28. High level committee on GOVT OF INDIA M NARASIMHAM 1991 1991
financial system
29. Committee on co-operative Arthanareeswaran 1997
law
30. A taskforce to study GOVT OF INDIA Jagadish Kapoor 1999 1999
cooperative credit system
31. High power committee on RBI Madhava Rao 1999
Urban banks
32. Expert committee on rural NABARD PROF V S Vyas 2000 2000
credit
33. Task force on revival of co- GOVT OF INDIA A. VAIDYANATHAN 2004 2004
operative credit institutions
34. Task force on revival of Long GOVT. OF INDIA A. VAIDYANATHAN 2005 2005
term rural co-operative credit
structure
35. Expert committee to examine RBI PRAKASH BAKSHI 2012 2012
three tier co-operative credit
structure
 Page | 1

INSTITUTES/SCHEMES AND REOMMENDED COMMITTEES

SL.NO. INSTITUTE/NEW SCHEMES RECOMMENDED BY

1. URBAN BANKS MC Lagan Committee 1915

2. DCB MC Lagan committee 1915
3. NABARD CRAFICARD 1981
4. SBI Gorwala committee 1954
5. NCCT MS SWAMINATHAN
6. RBI Hilton and young commission 1926
7. LAMPS LARGE-SIZED ADIVASI MULTI- KS BAWA Committee 1971
PURPOSE COOPERATIVE SOCIETIES
8. LAND MORTGAGE BANKS IN MADRAS Townsend committee 1927
9. FARMERS SERVICE SOCIETY (FSS) National commission on Agriculture
10 MPCS SARAIYA COMMITTEE
11. SINGLE [PURPOSE COOPERATIVE SOCIETY Royal commission on agriculture
12. CROP LOAN SYSTEM Gorwala committee / AIRCSC
13. MULTI AGENCY APPROACH IN RURAL B Venkita paih / ARCRC
CREDIT
14. SFDA B Venkita paih / ARCRC
15. REGULATED MARKETS Royal commission on agriculture
16. MINIMUM INVOLVEMENT SCHEME G.P.Bhave
17. BUSINESS DEVELOPMENT PLAN (BDP) Khusru Committee
18. NATIONAL CO-OPERATIVE BANK OF INDIA Khusru Committee
(COBI)
 Page | 1

PERIOD AND OBJECTIVES OF FIVE-YEAR PLANS IN INDIA

Sl.no YEARS MAIN OBJECTIVE

1 FIRST PLAN 1951-1956 Agriculture

2. SECOND PLAN 1956-1961 Industrial Development
3. THIRD PLAN 1961-1966 Self-reliant and self-generating economy
4. PLAN HOLIDAY 1966-1969 3 annual plans
5. FORTH PLAN 1969-1974 Growth with stability
6. FIFTH PLAN 1974-1979 Garibi hatao – attainment of self-reliance
7. ANNUAL PLANS 1978-1980 Rolling plans
8. SIXTH PLAN 1980-1985 Poverty eradication and technological
self-reliance
9. SEVENTH PLAN 1985-1990 Public Sector
10. ANNUAL PLANS 1990-1992

11. EIGHTH PLAN 1992-1997 Development of human resources

12. NINTH PLAMN 1997-2002 Growth with justice and equality
13 TENTH PLAN 2002-2007
14. ELEVENTH PLAN 2007-2012 Faster and more inclusive growth
15. TWELTH PLAN 2012-2017 Faster and more inclusive and
sustainable growth
 Page | 1

AMUL – ANAND MILK UNION LIMITED KAIRA – 1946

Kaira Milk society was registered in 1946 in Anand Gujarat Head

Quarters of NDDB is Gujarat. It is a cooperative brand manages by a
cooperative body, the Gujarat Cooperative Milk Federation (GCMMF)
which today is jointly owned by 36 lakh milk producers of Gujarat.

In 1964, was the turning point in the history of dairy development

programme in India. Late shri Lal Bahadhur Shastri, the then prime
minister of India who visited Anand on 31st October for the Inauguration
of Amul Cattle Feed plant. In order to bring this dream to reality. 1965 the
National dairy Development Board (NDDB) was established at Anand and
by 1969-70 NDDB came out with the diary development programme for
India popularly known as operation flood or white Revolution and referred
as Anand pattern. Gujarat co-operative Milk Marketing Federation
(GCMMF) is India’s largest Exporter of Dairy products.
 Page | 1
OPERATION FLOOD

• Operation flood is a project of the National Dairy Development Board (NDDB) which was
the world’s biggest dairy development program which made India, a milk-sufficient
nation, the largest milk producer in the world, surpassing the USA in 1998.

• The Anand pattern experiment at Amul, a single. Cooperative dairy, was the engine
behind the success of the program. Varghese Kurien was made the first chairman of
NDDB by the Prime Minister of India, shri Lal Bahadur Shastri.

• Operation flood was implemented in three phases.

Phase I

• Operation Floor Phase I (1970-1980) was financed by the sale of skimmed milk powder
and butter oil donated by the European Union (then the European Economic
Community) through the world Food Program. NDDB planned the program and
negotiated the details of EEC assistance.

Phase II

• Operation Flood Phase II (1979-1985). In this way EEC gifts and world Bank loan helped
promote self-reliance. Introduction of APCOS.

Phase III

• Operation Flood Phase III (1985-1996) enabled dairy co-operatives to expand and
strengthen the infrastructure required t procure and market increasing volume of milk.
National Milk grid was formed during Operation Flood Phase III.

Dr.Varghese Kurian (1921-2012) The Milk Man of India

Varghese Kurian was a renowned Indian Social entrepreneur and is best known as the father
of the white Revolution Kurian was responsible for the creation and success of Amul brand of
dairy products.

The invention of milk powder processed from buffalo milk was a key achievement of Amul. His
achievements with the Amul diary led prime minister Lal Bahadur Shastri to appoint him as the
 Page | 2

founder Chairman of National Dairy Development Board (NDDB) in 1965. He was born at
Calicut. He worked as a general manager and later Chairman of Amul. He was also known as
the father of operation flood.

Kurian won several awards including Padma Vibhushan, the world food prize and the
Magsaysay Award for community leadership, Dr.Kurian was the first recipient of the Rochdale
Pioneers Award in 2011.
DIARY CO-OPERATIVES AND FEDERATIONS

The national dairy development board has been constituted as a body corporate
and declared an institution of national importance by an act of India’s
parliament.

The NDDB was founded in 1965 to replace exploitation with empowerment,

tradition with modernity, stagnation with growth, transforming dairying into an
instrument for development of India’s rural people.

NDDB began its operations with the mission of making dairying a vehicle to a
better future for millions of grass roots milk producers. The mission achieved
thrust and direction with the launching of "Operation Flood", a programme
extending over 26 years and which used world bank loan to finance India’s
emergence as the world’s largest milk producing nation. Operation Flood's third
phase was completed in 1996 and has to its credit a number of significant
achievements.

The NDDB-initially registered as a society under the Societies Act 1860 - was
merged with the erstwhile Indian Dairy Corporation, a company formed and
registered under the Companies Act 1956, by an Act of India's Parliament - the
NDDB Act 1987 with effect from 12.10.1987.

NDDB was declared an institution of national importance by the NDDB Act

1987

> The general superintendence, direction, control and management of NDDB's

affairs and business vests with the Board of Directors

> NDDB Headquarters is located at Anand Gujarat

› Operation Flood programme was introduced by NDDB in 1.7.1970

The formation of NDDB was initiated by Lal Bahadur Sasthri.

> NDDB was founded by Dr Varghese Kurian and Dr Amrita Patel.

▸ Dr Varghese Kurian was the first chairman of NDDB.

› NDDB is working under the Department of Animal Husbandry and Dairying

NCDFI-THE NATIONAL CO-OP DAIRY FEDERATION OF INDIA-

ANAND 197

The NCDFI, based at Anand, is an apex organisation for the co-operative dairy
Industry. Its members include federal dairy co-operatives of states and union
territories. The NCDFI was registered in 1970 under the MSCS Act, 1984. Its
primary objective is to facilitate the working of dairy co-operatives through
coordination, networking and advocacy.

DR. VARGHESE KURIEN (1921-2012) THE MILK MAN OF INDIA

Varghese Kurien was a renowned Indian social entrepreneur and is best known
as the "Father of the White Revolution" for his 'billion-liter idea' Operation
Flood the world's biggest agricultural development programme. He founded
around 30 institutions of excellence (like AMUL, GCMMF, IRMA, NDDB)
which are owned, managed by farmers and nun by professionals. As the
founding chairman of the Gujarat Co-operative Milk Marketing Federation
(GCMMF), Kurien was responsible for the creation and success of the Amul
brand of dairy products. Known as the "Milkman of India", Kurien won several
awards including Padma Vibhushan (India's second-highest civilian honour), the
World Food Prize and the Magsaysay Award for community leadership.
Varghese Kurien was born at Calicut, known as the man behind AMUL Known
as milk man of India and father of white revolution in India.

IFSC-INDIAN FINANCIAL SYSTEM CODE

IFSC is an alpha-numeric code that identifies a bank-branch participating in the

ung RTGS/NEFT system. IFSC has 11-digit code and the first four alpha
characters represents the bank, the 5th code is 0 (zero), which is reserved for
future use and the last six digits are numeric characters represents the branch.
Correct IFSC code is essential for identifying dab the beneficiary's branch and
bank as destination for funds transfers. E.g. Syndicate Bank Cuffe Parade
Branch, Mumbai- SYNB0006050

>IFSC is an alpha-numeric code that identifies a bank-branch participating in the

RTGS/NEFT system

> IFSC has 11-digit code and the first four alpha characters represents the bank
and the last six digits are numeric characters represents the branch.

RTGS-REAL TIME GROSS SETTLEMENT - MARCH 2004

The acronym 'RTGS' stands for Real Time settlement which can be explained as
a system where there is continuous and real time settlement of fund individually
on a transaction-by-transaction basis. 'Real Time' means the processing of
instructions at the time they are received; 'Gross Settlement means that the
settlement of funds transfer Instructions occurs individually.

The remitter need not use a physical cheque or a demand draft.

✓ RTGS is available 24x7x365 with effect from December 14, 2020. The RTGS
system is primarily meant for large value transactions. The minimum amount to
be remitted through RTGS is ₹ 2,00,000/ with no upper or maximum ceiling.
With effect from July 01, 2019, the processing charges for RTGS are given
below

INWARD TRANSACTIONS - FREE, no charge to be levied.

OUTWARD TRANSACTION-200000-500000 not exceeding Rs 24.50 Above

500000 not exceeding Rs 49.50

UPI-UNIFIED PAYMENTS INTERFACE-2016

Unified Payments Interface (UPI) is a system that powers multiple bank accounts
into a single mobile application (of any participating bank), merging several
banking features, seamless fund routing & merchant payments into one hood. It
also caters to the "Peer to Peer" collect request which can be scheduled and paid
as per requirement and convenience. With the above context in mind, NPCI
conducted a pilot launch with 21 member banks. The pilot launch was on 11th
April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have
started to upload their UPI enabled Apps on Google Play store from 25th
August, 2016 onwards.

UPI was developed by NPCI and established by RBI and IBA (Indian Banks
Association)

BHIM- Bharath Interface for Money is a mobile payment Application designed

by NPCI in 2016

It is a zero charge frame work for user

➤ Charges for UPI- Currently No charges

➤ Examples for UPI - Google Pay, Phone pay, Amazone Pay, BHIM, Paytm etc

Minimum amount of Transfer - No minimum limi

Maximum amount for UPI / Day - Rs one lakh per day

The first country to adopt India's UPI System is – Nepal

NEFT-NATIONAL ELECTRONIC FUND TRANSFER

• NEFT is a nation-wide centralised payment system owned and operated by

the RBI
• NEFT transaction is completed through 4 steps
• There is no limit Imposed by the RBI for funds transfer through NEFT
system
• A person having no bank account can remit funds through NEFT to a
beneficiary a bank account, with another NEFT member bank. Such cash
remittances will, how be restricted to a maximum of 50,000/- per
transaction.
• NEFT system is available round the clock throughout the year on all days,
i.e., on 24x7x365 basis. NEFT presently operates in batches on half-hourly
intervals throughout the day.

The RBI does not levy any charges from member banks for NEFT transactions.
Also, there are no charges to be levied for Inward transactions at destination
bank branches for giving credit to beneficiary accounts.

> For outward transactions, the maximum charges that bank can levy from their
customer for NEFT transaction are as follows:
a) With effect from January 01, 2020, banks have been advised to not levy any
charges from their savings bank account holders for NEFT funds transfers
initiated online.

b) Maximum charges which can be levied for outward transactions at bank for
other transactions -

For transactions up to 10,000: not exceeding 2.50 +GST

For transactions up to 10,000: not exceeding 2.50 +GST

For transactions above ₹10,000 up to 1 lakh: not exceeding 2.5 + GST

For transactions above 1 lakh and up to 2 lakhs: not exceeding 15 (GST)

For transactions above 2 lakhs: not exceeding 25 + GST

Timeline of two hours from the batch settlement within which beneficiary's
account should be credited.

NEFT was introduced in November 2005

 Page | 1
IMPORTANT SECTIONS TO REMEMBER
SECTION SUBJECT SECTION SUBJECT

1 Preamble 61 Provident Fund

2 Definitions 62 Gratuity

3. Registrar 63 Director of Co-operative Audit

4. Societies Which may be Registered 64 Scope of Audit, DCA, Procedure for

Audit
5. Registration with Limited Liability 65 Inquiry by the Registrar

6. Application For Registration 66 Supervision and Inspection

7. Registration 66A Powers of RCS to give directions

8. Registration Certificate 66B Suspension of Officers

10 Change of Name 67 Cost of Inquiry

11 Change of Liability 68 Surcharge

12 Amendment of Byelaw 68A Vigilance Officer

14 Amalgamation, division of societies 69 Disputes to be decided by Co-

operative Arbitration court &
Registrar
14A Provision regarding transfer of 69A Co-operation Ombudsman
assets and liabilities of district o-
operative bank to Kerala State Co-
operative Bank
15 Cancellation of Registration 70 Award on disputes
Certificate
16 Persons who may become 70A Co-operative Arbitration Courts
members
17 Expulsion of members 70B Provisions as to pending
proceedings
18 Nominal or Associate Member 71 Winding Up of societies

20 Vote of Members 72 Liquidator

27 Final authority in a society 73 Power of Liquidator

28 Appointment of Committee 74 Cancellation of Registration
Certificate
 Page | 2
28A Reservation of Women and SC/SC 80 Officers Etc. of co-operative
of managing committee Societies
28B State Co-operative Election 80A Pension Scheme
Commission
29 Annual; General body Meeting 80B Cooperative Service Examination
Board
30 Special General Body Meeting 80C Kerala cooperate e Employees
welfare scheme
32 Supersession of the committee 80D Kerala State cooperative Employees
welfare Board
34 Securing Possession of Records 81 Tribunal

35 First Charge of Societies 82 Appeals to Tribunal

40 Exemption from Stamp duty, 84 Revision to Tribunal

Registration Fee
41 Exemption from Compulsory 85 Review by Tribunal
Registration
44 Principal State Partnership Fund 86 Inter Locutory order By Tribunal

45. Subsidiary state Partnership Fund 88 Circle Co-operative Unions

56 Disposal of Net Profit 89 State Co-operative Union

57 Investment of fund 91 Functions of State Co-operative

Union
57A Cooperative Development and 94 Offences
Welfare Fund

57b Deposit Guarantee scheme 96 Address of society

57C Consortium Lending Scheme 108 Duties of police officer

57D Cooperative Risk fund Scheme 109 Power to make rules