Cooperative system is a popular system in India. It is formed by some people or organizations to help some people in need. It may be formed in consumer system or in banking form. There are many example and names in India. It is seen in urban areas and in rural areas also. Previously it is formed with some capital but now a days Government also helps and insists this system. So it is a very popular and well known system. Main object of this system are to provide some facilities among people by running with no profit no loss system.

It is run by some people by forming a board. Members of board take decision to run it successfully. In consumer co-operative system people may purchase consumable goods in cash or credit. Interest rate is normally low and so people take interest in it. In banking system it provides loan facilities also. It has been seen that mainly farmers are benefited by this system. There are many co-operative banks in India and running successfully. But this system has some advantages and disadvantages also.

Main advantages are there is a scope of employment here. Many people can get jobs and it is run with many people so indirectly it provides many facilities also. People get many goods and loan also in very low price. It also helps to maintain co-operation among few people. For this it is very popular in rural areas. Farmers are benefited in many ways as they can get cultivation loan easily. Now a day’s many modern facilities have been introduced to make it popular.

But it has some disadvantages also. Large number of capital is not provided so transactions remain with in limit. If it is in rural areas many people can not repay their loans. So it may face loss and is forced to close this system. Scope of employment is not sufficient. Monitoring system should be on in every moments as it is public oriented. Many other organizations are popular now so it is very difficult to run successfully.

So we should run with positive minds and should insist cooperative system. In future it may be a popular and acceptable system among all level of people.

Article Posted By : Ram Prosad Acharyya  On October 11, 2015lView All Articles

I am a member and director of a consumer co-operative.

Article Source :

http://www.veethi.com/articles/co-operative-system-article-3643.htm

Keywords :
cooperative system consumer and bank