ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Rural CreditSubscribe to Rural Credit

How Efficient Are India’s Cooperative Banks?

In spite of their distinct organisational structure and banking philosophy based on mutuality, there is scant evidence on efficiency of cooperative banks. The efficiency of district central cooperative banks in India is investigated by constructing a panel of 297 cooperative banks over the period 2002–14. Using parametric and non-parametric frontier analysis, it is found that efficiency estimates vary depending upon whether advances or investments of DCCBs are used as output. The efficiency of cooperative banking is mapped, and shows considerable variation in efficiency of DCCBs across states. The findings suggest the need for innovative strategies to improve cooperative banking efficiency in the country.

Need to Resurrect Rural Credit Institutions

A determined effort is called for to strengthen the rural credit system by creating new institutions if necessary and strengthening the multi-agency arrangement of commercial banks, regional rural banks and credit cooperatives and assigning to them specific regional, sectoral and functional responsibilities.

Revitalising Rural Credit System: Views of Expert Committee

Rural credit and issues concerning it have received rather less attention in recent times. A look at the recommendation of the expert committee on rural credit, which submitted its report to Nabard a year ago. The committee was mandated to review the rural credit system in totality and recommend strategies and approaches to meet future challenges.

D R Gadgil on Cooperative Commonwealth

The cooperative system that was put into operation in the country as a result of the recommendations of the Committee of Direction of the Rural Credit Survey in the middle of the 1950s has, after a couple of decades of positive results, run into difficulties and steadily declined. Many administrators and others in discussions blame that committee and D R Gadgil in particular for the scheme where the state was made a partner in the cooperative enterprise, resulting in rigid mechanical procedures, heavy subsidies - overt or implicit - and bureaucratisation on the one hand and politicisation on the other. How objective and fair is this assessment?
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