ABSTRACT

Cooperatives are critical institutions in the process of achieving social and financial inclusion. Whereas the social inclusion issue is addressed by sub-sectoral and service cooperatives, savings and credit cooperatives function as inclusive financial intermediaries. Within the microfinance movement, globally, credit cooperatives and unions have a unique place as their membership is constituted largely by small farmers and petty entrepreneurs. In India the provision of financial services through cooperatives began in an organised manner after the enactment of the Cooperative Credit Societies Act 1904. Constitutionally, cooperatives is a state subject. Registered under respective state legislations their activities are restricted to single states. Only those registered under the Multi State Cooperative Societies Act (MSCSA) are entitled to operate in more than one state.