Lending practices of cooperative banks: A special case study of Shekhawati region in Rajasthan

Cooperative banks play a very important role for farmers. They play an imperative role in running the economy of the country alongside the commercial banks. While commercial banks focus in their profit motive, co-operative banks provide encouragement to the scrawny and highly neglected society of the economy. This doesn‟t stop here. Co-operatives also help other co-operatives as well as the richer section of the society. The Indian Rural Sector has an agricultural dominance. The engagement of majority population in farming and related activities that are seasonal in nature, leads to their occupation giving them far less returns to complete their future requirements. While the sector has a high dependency on government-aid and private money-lenders, they need a faster acting and a transparent mechanism to help them. And coming up with a motto of „self-help‟ the co-operatives prove to be their backbone providing need-based finance. The co-operative structure has been designed with this clear view of motivating and supporting this section of the economy.