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Exercises · Q11

Q.How does a District Central Co-operative Bank differ from a primary agricultural credit society? Explain any three points.

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A District Central Co-operative Bank and a primary agricultural credit society belong to different tiers of the three-tier structure, and they differ on several points. Three important ones are:

BasisDistrict Central Co-operative BankPrimary Agricultural Credit Society
Tier and areaThe middle tier, working across a whole districtThe base tier, working in a single village or small group of villages
MembersMainly the primary co-operative societies of the district (a co-operative of co-operatives)The individual farmers and villagers themselves
Nature of businessCarries on full banking and finances the societies — accepts deposits, lends to societies and others, and links them to the apex bankSimply pools its members' savings and lends them back to members; not a full bank

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