The general approach to the loaning policies and procedures of co-operative banks has been to

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	implement the crop loan system in all its aspects
B	allow only long-term loans to the farmers extending beyond 20 years for development on land
C	finance for research and upgradation of agricultural inputs like seeds, manure, implements etc.
D	provide a window for marketing of agricultural produce

Explanation:

Detailed explanation-1: -A debt-based agreement between a business and financial institution. From the above, it is clear that the loans from banks and cooperatives are called Formal sector loans.

Detailed explanation-2: -Co-operative banks have a 3-tier structure. Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term. loans.

Detailed explanation-3: -Under the provisions of Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches.

Detailed explanation-4: -The most prominent amongst the early credit societies was the Bombay Urban Co-operative Credit Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on January 23, 1906..

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