Rural Development through Cooperative Banks: Achievements and Hindrances

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Rural Development through Cooperative Banks: Achievements and Hindrances

ABSTRACT

The cooperative sector is one of the main partners of Indian Banking systems, the cooperative banks have more reach to the rural India, through their huge network of credit societies in the institutional credit structure. The cooperative sector has played a key role in the economy of the country and always recognized as an integral part of our national economy. Cooperatives have ideological base, economic objects with social outlook and approach. The cooperative form of organization is the Ideal Organization for economically weaker sections in the country. The Primary Agriculture Credit Societies (PACS) amount for about 30 percent of micro credit in India and play a very crucial role in Community Development. This paper attempts to analyze the role of cooperative banks in rural development in the State of Sikkim in India. The paper analyzed the trends in rural credit, outreach of Credit societies and level of participation of rural communities in the mainstream financial system through PACS.

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