The Co-operative movement was first introduced in India by the Co-operative Societies Act, 1904 for credit societies alone. However in 1912, the scope of these societies was extended to other forms of societies also.

In the rural areas Primary Co-operatives, which deal with farmers, get their main finance from District Central Co-operative Bank which controls and supervises the activities of the primary co-operatives.

The District Central Co-operative Bank in turn is under the State Co-operative Bank, which collects resources from Reserve Bank.

In the Urban Areas the Co-operatives are controlled by the State Co-operative Banks, or Apex Banks.


Formation Procedure:

1. Any ten individuals who have the capacity to enter into contracts can start a co-operative society.

2. They must prepare Bye-laws (Rules) of the proposed society.

3. They must apply to Deputy Registrar or Registrar along with two copies of Bye-laws.


4. The Registrar or Deputy Registrar, if satisfied, will issue the Certificate of Registration under his office seal and signature to legally permit the creation of the society.

5. To secure the clearance from the Reserve Bank, if Credit Co­operatives are to be formed.

6. To cover the finance through Deposit Insurance and Credit Guarantees Corporation (DICGC).

The application for Registration must contain the following particulars.


The name of the society.

The aims and objectives of the society.

The terms and conditions on which members are admitted.

Names and addresses of members.


Mode of investment of surplus.