Study on Problems and Issues faced by Co-operative Banks in Indian Economy

Co-operative banks play an important role in the economy of India. These Banks also contribute the major part in the India’s banking and financial system. The role of cooperatives banks in Rural and Urban areas has been increased in a ample part nowadays because of increase of primary co-operatives and there main role of financing both rural and urban area
is increasing day by day. The co-operative banks origin can be drawn out in the 1904 when the efforts are made to open financial concerns based on cooperation’s principles for solving the irregular problems of Indian Economic. The rural areas imposing the main effect on the co-operative banks. The rural area requires funds for two reasons viz. Working capital through short terms needs and agriculture and other bearing activities through long run necessities. The agricultural and other than agricultural processes in the rural areas is typically seasonal. The households required credit to work seasonal
activities in generating revenue and spending of it. A co-operative movement plays a vital role in development of society and economic environment of the country. But Govt. of India has not provided a good support to the cooperatives due to which several issues and problems have been faced by them. Thus an attempt has been made to complex the problems and the relative perspective of co-operative banks in the Indian Economy.