CO-OPERATIVE CllEDIT SOCIETIES' BlLL, 1903. 



Statement of Objects and Reasons. 



THE object of this measure is to provide the requisite legal basis 

 for the establishment in India of Agricultural Banks, or to use a 

 more appropriate expression of Co-operative Credit Societies. Such 

 a scheme for improving the credit of the masses has for some time 

 past been engaging the attention of the Government, the advantages 

 likely to follow the provision of some means of obtaining capital, 

 especially in connection with agricultural operations, otherwise than at 

 usurious rates of interest having, indeed, long been recognized in this 

 country. Legislation is called for not only in order to lay down the 

 fundamental conditions which must be observed, but also with a view 

 to giving such societies a corporate existence without resort to the 

 elaborate provisions of the Companies Act ; but it is thought that 

 legislation should be confined within the narrowest possible limits. 

 The Bill has, therefore, been drawn so as to deal only with those 

 points which the Government consider to be essential, and its 

 provisions have been expressed in simple and general terms, a wide 

 rule-making power being reserved to Local Governments, so that what 

 is felt to be of the nature of an experiment may be tried in each 

 Province or part of a Province on such lines as seem to afford most 

 promise of success. An explanation of the more important features 

 of the draft will be found in the annexed notes on its clauses. 



Notes on Clauses. 



Clause 3. Much importance is attached to the appointment of a 

 special officer in each Province, who should, as Registrar of 

 Co-operative Societies, guide and control such societies, particularly 

 in the early days of the movement. Gradually, no doubt, as experience 

 is gained and the societies are able to stand alone, the fostering care 

 of the Registrar will be less required, and eventually his duties will 

 become for the most part purely official. 



Clauses 5-8. The main object is to encourage thrift and 

 co-operation among persons of limited means, and it is not intended 

 that the special facilities and concessions contemplated should be made 

 available for the ordinary operations of capital. The Bill is conceived 

 primarily in the interests of agriculturists, but it is recognized that 

 societies may properly be started among other classes of small means 





