తెలంగాణ ప్రభుత్వం
Cooperation Department
DEPARTMENT OF COOPERATION
Government of Telangana

Cooperation Movement

Cooperative Movement in India was started by the Inspired Agriculturists of Deccan Plateau in 1901. Edward Law Commission indicated that the Cooperative Credit Societies should be started in Raiffensen method i.e. focused on financial problem of rural population and farmers need of credit. On the basis of the above the British Government brought Ibberson bill into Cooperative Credit Societies Act 1904, which is the beginning for establishment of Cooperative Societies and the Government also recognized them.

The Cooperative Movement in India started with Cooperative Credit Societies Act 10 of 1904. In 1912 Government passed another Act making provision for different types of Societies having different financial activities.The Government of India transferred the subject of Cooperatives to all the states by passing another Act in 1919. After independence the Government of India realized the importance of cooperative movement and wanted to induct the development of Cooperative Movement in 5 years plans as their integral part from 1950 onwards. The Government had appointed (All India Rural Credit Survey Committee) under the Chairmanship of A.D. Gorewala in the year 1951 to study the rural credit survey in India. The Government accepted the recommendations of all Rural Credit Survey Committee (1964) report and facilitated the progress of Cooperative  Societies in all sector of development. Taking into consideration of 1904 Act, some Agricultural Finance Societies were established in order to extend financial assistance to farmers. Cooperative societies and DCCBS were established in accordance to the 1912 Act.  In 1932 the Madras Cooperative Societies Act made provisions for development of Cooperative Societies.

The Cooperative Societies Act 1964 came into force in Andhra Pradesh by merging the Madras Cooperative Societies Act 1932, Land Mortgage  Act 1934, Hyderabad Cooperative Societies Act, 1952.The Single window system emerged in erstwhile Andhra Pradesh in 1987 for rural credit. Further the Government formulated new Act i.e., the Mutually Aided Cooperative Societies Act 1995 in order to facilitate functioning of all the Cooperative Societies autonomously, self supporting and avoiding direct control of the Government.

Cooperative Movement in Telangana:

             The state had been under the jurisdiction of Princely state of Hyderabad covering (10) Telugu Speaking Districts. A separate Department of Cooperation was established during 1914-15.The first Cooperative Credit Societies Act was passed in Telangana area in 1920. There was only one Central Cooperative Bank and (24) other types of Societies.

           The Hyderabad Central Cooperative Bank had confined its activities to the Hyderabad city covering the cultivators residing in villages adjoining Hyderabad City. In 1925 the Hyderabad Cooperative Central Bank was converted into provisional Cooperative Bank. During the decade of 1920 to 1930 the Cooperatives made significant progress in the state. The decade 1940-50 was a significant period in the Cooperative Movement in the Telangana State.

           The first Grain Bank was registered in Nizamabad District in 1943 with the aim to support all types of grains to the farmer’s community through barter system. After that several grain banks were started all over the Telangana region.

             The state of Andhra Pradesh was constituted in the year 1956 with amalgamation of Andhra Pradesh and Telangana regions. The Cooperative sector has been given, due importance in 5 year plans with progressively increasing budgetary allocations.The major activity in the Cooperatives in the state is credit and now the Cooperative sector has become a multipurpose system.

            Presently, Rural Credit structure comprises of following institutions i.e. PACS, FSCS, LSCS, DCCBs, Apex Banks, (TSCAB) and Commercial Banks & RRBs. Besides, these organizations working at primary level, there are other supporting and refinancing  Cooperative Institutions operating at National level namely, they are NABARD, NCDC, RBI,NCUI, NAFED, IFCO, KRIBHCO, FISHCOPFED, CHBFC, NACOF, NAFSCOB, NCCF etc.

            Under the Cooperative sector many types of Cooperative Societies are registered and functioning well in the state such as PACS, FSCS, LSCS, DCCB, CUB, Women Coop., Industrial Coop. Life stock/ Poultry, Fishery, Labour, Sugar, Housing, Dairy, Consumer, Marketing, Agro Processing, Handloom and Textiles, Tribal Welfare, SC, ST, BC Welfare Societies, Employees Thrift and Credit, Non Credit, Services, Self-help groups under Rural Development Programmes and also registered societies with Functional Registrars, under the Telangana State Cooperative Societies Act 1964 and Telangana Mutually Aided Cooperative Societies Act 1995 and also Multi State Cooperative Societies Act  2002 are working across the State. 

            The Government have promulgated APCS Act of 1964 for formulation of smaller societies, guidance and for the purpose of regulation. In 1995 the Government have promulgated the A.P. Mutually Aided Cooperative Societies Act with a view to extend greater autonomy to the societies in their functioning thereby encouraging their self-sustenance.

          As per the State Re-organization Act in view of the  formation of the Telangana State on 02-06-2014, the Telengana Cooperative Societies Act 1964 came into existence vide G.O. Ms. No.53 dated 20-05-2016 with modifications. Vide Government memo No. 2204/Agril-III (2)/2016,Dt,21.06.2016 , the title of the State Acts have been personalized as Telangana Cooperative Societies Act of 1964 and Telangana   Mutually Aided Cooperative Societies Act of 1995.