Organisation and Function of Central Cooperative Banks (CCBs)

Organisation and Function of Central Cooperative Banks (CCBs)

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The three-tiered cooperative credit structure is in the center and is composed of Central Cooperative Banks. They come in two varieties:

(A) Cooperative societies may be the only eligible applicants for enrollment in cooperative banking unions. There are cooperative banking unions of this type in Kerala, Orissa, Punjab, Haryana, and Punjab.

(b) Mixed Central Cooperative Banks are those that allow both cooperative societies and individuals to join. These are the Central Cooperative Banks found in the remaining states. The central cooperative banks' primary duty is to lend money to the major cooperative groups. But certain loans are also offered to private citizens and other people.

Capital - The Central Cooperative Banks obtain their working capital from a variety of sources, including their own funds, deposits, and borrowings.

Problem with Overdues - The Central Cooperative Banks obtain their working capital from a variety of sources, including their own funds, deposits, and borrowings.

(a) Natural disasters like floods and draughts that impede the borrowers' ability to repay

(b) The banks' insufficient and ineffective supervision

(c) The inadequate management and quality of banks and societies

(d) Lack of a credit-marketing connection

(e) Aversion to coercive action

The inadequacy of the apparatus to quickly carry out the decrees where coercive means were used.

The Central Sector Plan Scheme, which provides semi-financial assistance to write off bad debts, losses, and irrecoverable overdues against small and marginal farmers, has been developed for the rehabilitation of the weak Central Cooperative Banks.