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Co-operation · Class 12 Commerce

Ch 7District Central Co-operative Bank — Class 12 Co-operation, concept-first.

A single village co-operative society is a small thing. It has a few hundred members, a modest pool of share capital and deposits, and it can lend only within its own village. When the sowing season comes and every farmer in the village wants a loan at the same time, that little society soon runs out of money.

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Key concepts

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The Three-Tier Structure and the Place of the DCCB

Rural (agricultural) co-operative credit is arranged as a three-tier pyramid: primary agricultural credit societies (PACS) at the base (village level, dealing with individual farmers), the District Central Co-operative B…

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

The Three-Tier Co-operative Credit Structure — Where the DCCB Stands

A single village co-operative society is a small thing. It has a few hundred members, a modest pool of share capital and deposits, and it can lend only within its own village.

2

Meaning and Definition of a District Central Co-operative Bank

A District Central Co-operative Bank (DCCB) is a co-operative bank established at the district level whose main members are the primary co-operative societies of that district, and whose chief work is…

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Features of a District Central Co-operative Bank

The features of a DCCB flow from its twin nature — it is a co-operative and it is a bank — and above all from its middle position in the three-tier structure. The main features are set out below.

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Functions of a District Central Co-operative Bank

The functions of a DCCB are of two kinds: the special functions it performs as the central financing agency of the district's societies, and the ordinary functions it performs as a bank.

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Sources of Funds of a District Central Co-operative Bank

A bank can lend only what it can raise, and the DCCB — which has to finance a whole district of societies — must raise its funds from several sources.

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Role and Importance of District Central Co-operative Banks

The District Central Co-operative Bank occupies the pivotal middle place in the rural credit system, and its importance flows from that position.

Exercises

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  1. Q1In the three-tier co-operative credit structure, the District Central Co-operative Bank occupies the: (a) base (village) level (b) middle (d…Free
  2. Q2The main members of a District Central Co-operative Bank are: (a) individual farmers only (b) the primary co-operative societies of the dist…Free
  3. Q3State whether the following statement is TRUE or FALSE, and justify your answer: "The District Central Co-operative Bank deals directly with…Free
  4. Q4Define a District Central Co-operative Bank and state any four of its features.Preview
  5. Q5Explain the functions of a District Central Co-operative Bank as the central financing agency of the district.Preview
  6. Q6What is meant by the 'balancing centre' function of a District Central Co-operative Bank? Explain briefly.Preview
  7. Q7Distinguish between the owned funds and the borrowed funds of a District Central Co-operative Bank.Preview
  8. Q8Explain any four sources of funds of a District Central Co-operative Bank.Preview
  9. Q9Give reasons: The District Central Co-operative Bank is called the 'balancing centre' and the 'link' of the district's co-operative credit.Preview
  10. Q10Explain the role (importance) of District Central Co-operative Banks in the rural credit system.Preview
  11. Q11How does a District Central Co-operative Bank differ from a primary agricultural credit society? Explain any three points.Preview
  12. Q12Fill in the blank and justify: The apex institution above the District Central Co-operative Bank in the three-tier structure is the ________…Preview