Which was the first cooperative law enacted in India?
- A.The Cooperative Credit Societies Act, 1904
- B.The Cooperative Societies Act, 1912
- C.The Multi-State Cooperative Societies Act, 1984
- D.The Banking Regulation Act, 1949
Correct answer
Explanation
The correct answer is A, the Cooperative Credit Societies Act, 1904. It was the first law on the subject and gave village credit societies a legal form, following the recommendation of the Famine Commission and the study of European land banks by Frederick Nicholson, with the German Raiffeisen societies as the model. Option B, the Act of 1912, is the usual trap: it came next and was important because it allowed societies other than credit societies and permitted central or federal unions, but it was not the first. Option C, the Multi-State Cooperative Societies Act of 1984, dealt with societies working across State boundaries and was replaced by the Act of 2002. Option D, the Banking Regulation Act of 1949, governs banking and was extended to cooperative banks only in 1966. Remember the sequence 1904, 1912, 1919 and then the modern Acts.
Read the full article: Cooperatives and Self-Help Groups: Acts, NABARD and SHGs
Practice Questions
View allCooperation as a subject of legislation falls in which list of the Seventh Schedule?
- A.The Union List
- B.The State List
- C.The Concurrent List
- D.It is a residuary subject
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The correct answer is B, the State List, where cooperative societies appear as entry thirty-two, which is why every State has its own cooperative societies Act and its own registrar of cooperative societies.
Read the full explanation →Which Part of the Constitution dealing with cooperative societies was inserted by the 97th Amendment?
- A.Part IXA
- B.Part IXB
- C.Part XIVA
- D.Part IVA
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The correct answer is B, Part IXB, made up of Articles 243ZH to 243ZT, which the Constitution (Ninety-seventh Amendment) Act, 2011 inserted to lay down rules on the board of a cooperative society, its five-year term, reservation of seats, audit and elections.
Read the full explanation →NABARD was established in which year?
- A.1969
- B.1975
- C.1982
- D.1991
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The National Bank for Agriculture and Rural Development began work on 12 July 1982 on the recommendation of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development, chaired by B. Sivaraman, and it has its head office at Mumbai.
Read the full explanation →In the three-tier short-term cooperative credit structure, which institution works at the village level?
- A.The State Cooperative Bank
- B.The District Central Cooperative Bank
- C.The Primary Agricultural Credit Society
- D.The Regional Rural Bank
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The correct answer is C, the Primary Agricultural Credit Society, the body of farmer members in a village or a group of villages that lends directly to the cultivator for seed, fertiliser and other short-term needs.
Read the full explanation →The SHG-Bank Linkage Programme was launched as a pilot project by NABARD in which year?
- A.1982
- B.1992
- C.1999
- D.2011
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NABARD began the programme as a pilot, linking a few hundred self-help groups to banks so that a group with a record of regular saving and internal lending could borrow as a single account, and it has grown into the largest microfinance programme in the world measured by households reached.
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