Laxmikanth Test: Co-operative Societies - UPSC MCQ

The 97^th Constitutional Amendment Act of 2011 gave a constitutional status and protection to co-operative societies

The 97^th Constitutional Amendment Act added a new Part IX-B in the Constitution which is entitled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).

The Registrar, Cooperative Societies, delegated by the Lt.Governor, Delhi under Delhi Cooperative Societies Act, 2003, heads the Cooperative Department and assumes a crucial part in checking the working of Cooperative Societies enrolled under the Act.

Agricultural Credit Cooperative Society, of Kanaginahal town of Gadag District in Karnataka, was the principal helpful Society framed under the First Cooperative law of India. This was dispatched on eighth July 1905 by the locals of Kanaginahal under the authority of Shri Siddanagowda SannaRamanagaowda Patil with the underlying offer capital of Rupees 2,000.

Regional Rural Banks were set up under the arrangements of a law passed on 26 September 1975 and the RRB Act 1976 to give adequate banking and credit office for farming and other country areas. Thus, five RRBs were set up on 2 October 1975 on the suggestions of the Narsimha Committee on Rural Credit, during the residency of Indira Gandhi's administration. The design was to incorporate rustic regions into the financial standard since around 70% of the Indian populace was country.

The state legislature may make provisions for the incorporation, regulation and winding-up of co-operative societies based on the principles of voluntary formation, democratic member control, member economic participation and autonomous functioning.The board shall consist of such number of directors as may be provided by the state legislature.But, the maximum number of directors of a co-operative society shall not exceed twenty-one.

The 97^th Constitutional Amendment Act added a new Part IX-B in the Constitution which is entitled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).

The accounts of every co-operative society shall be audited within six months of the close of the financial year. The audit report of the accounts of an apex co-operative society shall be laid before the state legislature.

The main Cooperative Law of India The Cooperative Credit Societies Act, 1904 was passed on 25th March 1904.

The Reserve Bank acts in close co-appointment with different controllers, for example, Registrar of Co-usable Societies and Central Registrar of Co-employable Societies. The Reserve Bank goes into Memorandum of Understanding (MoU) with Central Government and all State Governments which have the presence of UCBs to guarantee more prominent intermingling of approaches on guideline and oversight.