BANKING TRADE AND COMMERCE

CO-OPERATIVE MOVEMENT

The co-operative movement in Yeotmal district was started in 1913 when the District Central Co-operative Bank was started at Yeotmal. During the same year a credit society was also formed at Wadgaon in Yeotmal tahsil. From then the movement considerably expanded and kept pace with the progress of the co-operative societies in Maharashtra State. After the reorganisation of States the scope of the movement widened to a great extent and it has not only covered the different sectors of the district economy but, what is more important, touched all the aspects of individual activity. The progress made by the co operative societies could be seen from the following table.

TABLE No. 3

STATISTICS OF PROGRESS MADE BY THE CO-OPERATIVE SOCIETIES IN YEOTMAL DISTRICT. FROM 1951-52 TO 1964-65.

The co-operative movement today has covered all the villages in the district and over 45 per cent of the total population. By 1965, there were 1,088 co-operative societies working in the district. The different types of co-operative societies and their number are given in the following statement.

DIFFERENT TYPES OF CO-OPERATIVE SOCIETIES IN THE DISTRICT

The details of the progress achieved by each of these various types of societies in the district are given below.

Primary Agricultural Co-operative Credit Societies.

The Primary Agricultural Co-operative Credit Societies are the most important of all the societies in the district as they form the major portion of the co-operative sector they represent in the district. By 1964-65 there were 609 Co-operative Credit Societies in the district. They included 51 large-sized multipurpose societies, two small-sized co-operative societies, 517 Seva or Service Societies, three Gram Vikas Sabhas and 36 primary credit societies. The details of the progress they achieved is given in the following table.

TABLE No. 4

PROGRESS MADE BY PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETIES IN 1963-64 AND 1964-65.

As per the decision of the National Development Council all the primary agricultural credit societies were to be converted into service or seva societies so that they could render better service to the multifarious needs of the village community. The| activities of seva societies, thus, are not only restricted to advancing small and medium term loans to agriculturists but also extended to arrange for the sale of their produce, supply them their daily necessities of life and to work for the all-round economic development of the district as its part. During 1964-65 these societies advanced Rs. 3,06,79,155, and recovered over 61 per cent of the dues from their members. The societies have also undertaken distribution of seeds, manures, medicines, etc, and also of such other necessary articles as, grains, sugar, etc.

During 1964-65 the distribution of different types of goods made of with their value was as follows: —

Of the total number of agricultural credit societies mentioned above, 95 have received Rs. 4,80,500 as share capital on the advice of the Rural Credit Committee. In addition, they also received grants and subsidies, management expenses and assistance towards bad debt reserve.

Co-operative Farming Societies.

The formation of co-operative farming societies was first thought of in 1946-47 with a view to rehabilitating ex-soldiers and deciding upon the allied problems connected with land tenure and land utilisation. Their chief object now is to increase agricultural production and create opportunities for gainful employment and to rehabilitate landless people on Government land. Farming societies are also looked upon as instrumental in achieving consolidation of scattered and fragmented holdings and improvement of fallow and waste land.

By 1964-65 there were 152 farming societies in this district. Of these 143 were collective farming societies, 7 joint farming, and two lift irrigation societies. Besides, there is also a Federation of farming and lift irrigation societies at the district level to supervise the working of and give guidance to the societies. Most of the members of these societies belong to the backward class, scheduled castes or scheduled tribes people. The societies owned land to the tune of 21,823 acres of which 19,227 were under cultivation. The following table gives the working and statistics of these societies in the district for two years viz, 1963-64 and 1964-65.

TABLE No. 5

STATISTICS OF CO-OPERATIVE FARMING AND LIFT IRRIGATION SOCIETIES IN YEOTMAL DISTRICT

The farming societies were granted government assistance by way of loans and subsidies as detailed below:

Co-operative Processing Societies.

These societies are formed with a view to providing a link between the agencies of production and distribution, and their formation is advantageous in making co-operative marketing successful. They also enable the agriculturists to get fair returns; for their produce. By 1964-65, there were 13 processing societies in this district. Of these, 11 were cotton ginning and pressings societies, one represented an oil mill and one a spinning mill Among these societies, the societies at Yeotmal, Pusad, Arvi Umerkhed, Darwha and Wani are working. Others have yet to start their work. The details about the working of the ginning societies are given below:—

In 1963-64 there were seven ginning societies actually working. They ginned in all 1,30,771 hales of cotton and earned Rs. 4,42,344. Three of these societies pressed 16,538 hales of cotton and earned to the extent of Rs. 2,23,587.

Industrial Estate.

The industrial estate in this district was a co-operative venture. It was started on 22nd November 1963 when a society was formed. Till 1964-65 the society had collected Rs. 12,500 by way of share capital and had 25 members. The industrial estate is expected to provide sheds, water and electricity to the units that would be established under this proposed scheme.

District Central Co-operative Bank.

The District Central Co-operative Bank was established at Yeotmal on 25th June, 1962 by amalgamation of the banks at Yeotmal, Darwha and Pusad that were separately working in their respective areas, viz., Yeotmal, Kelapur and Wani tahsils, Darwha tahsil and Pusad tahsil. The amalgamation took place in conformation with the policy of the Reserve Bank of India and that of the State Government.

The District Central Co-operative Bank at Yeotmal undertakes all banking business i.e., collection and discounting of bills, opening of current accounts, purchase and sale of securities and issue of cheques and drafts, etc. The bank also arranges for the sale of agricultural produce particularly of those agriculturists who come within the purview of the Agricultural Debtors' Relief Act, and who are allowed to become nominal members for obtaining crop finance.

The Main function of the bank is, however, to advance loans to all the co-operative credit societies affiliated to it. The bank has opened 25 branches and two pay-offices in the urban as well as rural areas. This has considerably facilitated its loan programme. The loans are distributed on a short-term basis mostly to agricultural co-operative credit societies, service co-operatives, farming and dairy societies and industrial co-operative societies.

The following statement gives the details of the progress achieved by the District Central Co-operative Bank, Yeotmal.

Working and Statistics of the District Central Co-operative Bank, Yeotmal.

During 1964-65, out of the total dues of Rs, 3,04,10,164 the Central Co-operative Bank recovered Rs. 2,20,20,269 or 72.4 per cent of its loans. The recoveries effected by the bank during the years from 1961-62 to 1964-65 are given below: —

 District Land Development Bank.

The Land Development Bank was originally started as the Land Mortgage Bank, in 1935. It was specially organised for meeting the long term credit requirements of the cultivator. The hank grants loans on the security of landed property offered by the borrowers. Loans are given up to 50 per cent of the value of immovable property mortgaged with the bank. The repayment of loans is permitted either on equated or equal instalment system fixed on the basis of the net repaying capacity of the. borrower and is spread over a maximum period of 20 years. The Main purpose for which loans are advanced are, (i) redemption of old debts, (ii) improvement of agricultural land and adoption of improved methods of cultivation, (iii) installation of agricultural machinery, and, (iv) purchase of land for the purpose of improvement or more economic cultivation of existing holdings and the reclamation of waste and fallow lands by tenant cultivators. Generally the long-term loan (i.e. between 5 and 10 years) is given against the security of land, whereas loans for period shorter than this are advanced even against the security of standing crops.

The bank advanced Rs. 11,39,019 in 1961-62, Rs. 23,33,100 in 1962-63, Rs. 24,87,625 in 1963-64 and Rs. 34,07,402 in 1964-65 for land development programme including digging new wells and installing oil engines and pumps. During 1964-65, it recovered Rs. 2,48,085 out of its total dues.

The Land Development Bank also deals in rural debentures. The latter are floated with a view to promote savings amongst agriculturists. The details of the debentures sold so far are given below: —

The progress achieved by this, bank during the years from 1961-62 to 1964-65 can be seen from the following statistics:-—

District Co-operative Board.

The District Co-operative Board was established on 13th June 1959 At the time of its registration, it had 121 members of which 71 were society members and 50 individuals. By 1964-65 the membership of the board recorded a substantial rise with 541 members including 472 society-members. There were in the district 1,088 co-operative societies belonging to different types, some of which, however, have still to become the members of the Board.

The Main object of the Board is to impress upon the people the importance of the cooperative movement and to give guidance to co-operative societies. It also carries out the task of giving instructions in co-operation, propaganda and publicity under the advice of Maharashtra State Co-operative Union and Vidarbha Division Co-operative Board. In order to achieve its objects the Board conducts training classes for members of the different co-operative societies, members of the managing committee, secretaries of different societies and group secretaries at various places in the district. It also holds camps and conferences and arranges exhibitions to propagate the co-operative movement. The Board has also brought out a number of publications giving first hand information about the co-operative movement in the district.

Purchase and Sale Societies.

The purchase and sale cooperative societies are started with a view to helping agriculturists in getting a fair price for their produce and to supply goods required by them for agricultural and domestic purposes.

By 1964-65 there were 14 purchase and sale societies working in the district. Their working and progress is given in the following statement: —

Of the total share capital, government contributed Rs. 9,63,040 in addition to the subsidies given from time to time.

The societies helped in running the 22 purchase centres and 53 sub-centres meant for the jowar procurement in the district.

District Industrial Co-operative Association.

The District Industrial Co-operative Association is a central body of all the industrial co-operative societies in the district. It was established in 1958. Its Main aim is to extend financial and other assistance to individual artisans and their societies and meet their needs. By 1964-65, the Association had a membership of 55 primary co-operative societies and 134 individuals. Its share capital amounted to Rs. 21,490 out of which Rs. 10,000 represented Government contribution. The reserve and other funds of the society during the same year were to the tune of Rs. 6,254 and its working capital Rs. 1,00,743. The Association also received Rs. 15,000 as loan and Rs. 4,000 subsidy for running the leather depot from the Khadi and Village Industries Commission.

By 1965 the sale and purchase position of the Association was as follows: —

The Association runs a leather depot and a handloom and handicrafts centre at Yeotmal. It also renders advice and gives guidance to other societies like labour contract societies, potters' societies and other industrial societies, operating in the district. The Association supplies raw hides to the leather working and tanning societies. At Lohara it has acquired a land admeasuring 3 acres and 33 gunthas and established an industrial township where leather tanning and other work is carried out.

Housing Societies.

By 1964-65 there were 46 co-operative housing societies in this district, of which 16 were in urban and 30 in rural areas. These societies have made an appreciable progress within a short period and helped to meet the housing shortage.

Under the scheme of providing houses for backward class people, the housing societies at Vanjan, Wani, Raipur and Digras have been granted Rs. 2,75,687 as loan and Rs. 2,09,187 as subsidy for 175 houses.

The statistics of the housing societies in the district are given below: —

Labourers' Societies.

A large area of about 1,294 sq. miles in this district is occupied by forests which are inhabited mostly by the Adivasis and backward people. Since 1961 the government started the organisation of co-operative societies for these people. By 1964-65 there were 32 labourer's societies with 1,130 members including 982 Adivasi members. The share capital of these societies was Rs. 62,196, of which the Government share was Rs. 39,000. The Government also made a grant of Rs. 28,800 as management subsidy to 23 out of 32 societies, and Rs. 42,000 as social welfare grant to 13 societies. In 1964-65 the District Central Co-operative Bank granted Rs. 52,400 to 12 co-operative societies.

A federation of the forest labourers' co-operative societies has already been formed to supervise and guide the activities of these societies.

Dairy Societies.

In this district 10 dairy societies were started, but many of them could not function for want of sufficient capital. Most of the members of these societies were agriculturists and numbered 341 in 1964-65. The share capital and the reserve fund of these societies came to Rs. 15,055 and Rs. 5,128, respectively.

Fishermen's Co-operative Societies.

As Yeotmal is not a coastal district the fisheries activities are restricted to inland water sources. Very few rivers are useful for fisheries activities and the inland trade is also very limited. By 1964-65 there were 5 fisheries societies registered in the district. They had a membership of 280, and their share capital amounted to Rs. 14,145, of which an amount of Rs. 8,000 was paid by the Government. The societies have hired water lakes either from the Government or the municipalities, and equipped them with quality fish. By 1964-65, these societies caught fishes worth Rs. 47,466 and sold the same at Rs. 64,621. The District Central Co-operative Bank helps these societies through grant of loans.

Industrial Co-operatives.

In pursuance of the policy of industrialisation the State Government encourages the formation of co-operative societies of artisans and craftsmen. The societies are given financial and technical aid. There were many co-operative industrial societies in the district, the statistics for which pertaining to 1964-65 are given below: —

The details of these societies are given below: —

Labour Contract Societies.

There were 23 labour contract societies in the district by 1964-65. They had 510 members. Their share capital during the year amounted to Rs. 19,725, and the reserve and other funds to Rs. 7,087. The working capital of these societies was Rs. 95,922. They had carried out work at 610 Government and semi-Government plots, at an estimated value of Rs. 23,40,158. The societies have received share capital, loan and subsidy for implements and management and technical subsidies from the Government. Some of the societies have also been in receipt of subsidies from the Zilla Parishad.

Non-agricultural Co-operative Societies.

These societies are formed generally by traders, factory workers, salary-earners, etc. for supplying credit to their members. They are mostly found in urban areas.

The societies advance loans to their members on personal security, mortgage of property on the security of valuables pledged and produce hypothecated. They allow cash credits and sanction overdrafts on any of the securities mentioned above. They also undertake modern banking business including the issue of hundis, cheques and collection of cheques, hundis, drafts, etc.

By 1964-65 there were 57 salary earner's co-operative societies in the district. They were established with the object of granting loans to the members. Following are the details of their working and progress: —

Urban Co-operative Bank.

The 'Sankat-mochan' Co-operative Urban Bank was registered at Yeotmal in this district only recently. Its object is to meet the financial needs of the people for certain specific needs. In 1964-65, its share capital was Rs. 31,000 and had a membership of 30. For the present the area of operation of the bank is restricted only to Yeotmal town.

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