InvestorQ : How does the cooperative credit system work in India?
Anushri Vasa made post

How does the cooperative credit system work in India?

Answer
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1 year ago


Indian cooperative credit system includes short-term as well as long-term credit requirements.

As the name suggests, the short-term credit structure caters to short-term capital needs. This can be anything between 1-5 years. The short-term credit system is a three-tiered structure:

- Primary Agricultural Cooperative Societies (PACCS) at village level

- District Central Cooperative Banks at district level

- State Cooperative Bank at state level

A few states have a two-tiered system:

- Primary Agricultural Cooperative Societies (PACCS) at village level

- State Cooperative Bank at state level

Meanwhile, the long-term credit structure has a two-tiered structure:

- Primary Agriculture and Rural Development Banks (PARDBs) at village level

- State Agriculture and Rural Development Banks.

State Cooperative Banks and District Central Cooperative Banks operate as regular banks with a focus on agriculture credit.