India has long remained an agriculture-oriented country, and even today, the economy mainly depends on agriculture. To address the problems of agriculturists, several committees were formed. Finally, in 1904, the first Cooperative Act was passed based on the recommendations of the Royal Commission. Under this Act, rural and urban cooperative societies (Patpedhies) were established. However, there was a need for a central financial agency to provide finance at a reasonable rate of interest to promote rural development. Accordingly, based on the recommendations of the Maclagan Committee, it was decided in 1915 to establish Central Cooperative Banks with the responsibility of providing finance to agriculture.
March 08, 2025
