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Co-operation · Class 12 Commerce

Ch 8Maharashtra State Co-operative Bank — Class 12 Co-operation, concept-first.

Before we can understand the Maharashtra State Co-operative Bank, we must first see where it sits in the larger scheme of rural credit. A single village society is small; it can gather only the modest savings of a few hundred members, and in a bad season — when the crop fails and every member needs money at once — it m…

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Concepts

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Key concepts

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Three-Tier Co-operative Credit Structure and the Apex Bank

Rural co-operative credit is organised as a three-tier pyramid. At the base stand the Primary Agricultural Credit Societies (PACS) in the villages, whose members are farmers and which lend directly to the cultivator.

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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

Before we can understand the Maharashtra State Co-operative Bank, we must first see where it sits in the larger scheme of rural credit.

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Meaning and Definition of the Maharashtra State Co-operative Bank

The Maharashtra State Co-operative Bank (MSC Bank) is the apex co-operative bank of the State of Maharashtra — the topmost tier of the three-tier co-operative credit structure.

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Features of the Maharashtra State Co-operative Bank

The features of the Maharashtra State Co-operative Bank follow from its place at the apex of the structure and from its twin nature as a co-operative society that is also a bank.

4

Functions of the Maharashtra State Co-operative Bank

As the apex bank, the MSC Bank performs the ordinary functions of a bank and the special functions of a leader and balancing centre for the whole co-operative structure.

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Sources of Funds of the Maharashtra State Co-operative Bank

A bank can lend only what it can raise. The funds of the Maharashtra State Co-operative Bank, like those of any co-operative bank, come from two broad sources — its owned (internal) funds and its borr…

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Relationship with the RBI, NABARD and the District Central Co-operative Banks

The whole importance of the Maharashtra State Co-operative Bank lies in the two sets of relationships it holds at the same time: upward, with the Reserve Bank of India and NABARD; and downward, with t…

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Role and Importance of the Maharashtra State Co-operative Bank

The Maharashtra State Co-operative Bank occupies a key place in the rural economy of the state, for it is the bank that finally carries national credit down to the village farmer and keeps the whole c…

Exercises

+Show 13 questions13 questions
  1. Q1The apex of the three-tier co-operative credit structure in Maharashtra is the: (a) Primary Agricultural Credit Society (b) District Central…Free
  2. Q2The members of the Maharashtra State Co-operative Bank are mainly the: (a) Individual farmers of the state (b) District Central Co-operative…Free
  3. Q3State whether the following statement is TRUE or FALSE, and justify your answer: "The Maharashtra State Co-operative Bank deals directly wit…Free
  4. Q4Define the Maharashtra State Co-operative Bank and state any four of its features.Preview
  5. Q5Explain the three-tier co-operative credit structure and show where the Maharashtra State Co-operative Bank fits into it.Preview
  6. Q6Explain any four functions of the Maharashtra State Co-operative Bank.Preview
  7. Q7Distinguish between the owned funds and the borrowed funds of the Maharashtra State Co-operative Bank.Preview
  8. Q8Explain any four sources of funds of the Maharashtra State Co-operative Bank.Preview
  9. Q9Explain the relationship of the Maharashtra State Co-operative Bank with the Reserve Bank of India and NABARD.Preview
  10. Q10Give reasons: The Maharashtra State Co-operative Bank is called the 'apex bank' and the 'leader of the co-operative movement'.Preview
  11. Q11How does the Maharashtra State Co-operative Bank differ from a District Central Co-operative Bank? Explain any three points.Preview
  12. Q12Fill in the blank and justify: The apex bank is the channel through which the refinance of __________ reaches the co-operative credit struct…Preview
  13. Q13Explain the role and importance of the Maharashtra State Co-operative Bank in the rural economy of the state.Preview