Cooperative Credit Institution has its glorious presence in the heart of Indian farmers for more than a century.  In fact, very few of them can think beyond cooperative when there are any financial problems.  It is an organization for the farmers, by the farmers and of the farmers.  Amongst cooperative credit institutions short term cooperative credit institutions provide short term crop loan to the farmers, while the long term cooperative credit institutions meet the long term cooperative credit need to carry forward agriculture and allied activities.  But the long term cooperative credit sector was necessitated as cooperative societies formed to provide short term credit were not in a position to extend loans to farmers so that they may liquidate their past debts, redeem their land and other assets from Usurious Money Lenders.  Loans provided by the short-term credit sector were not enough to enable farmers to improve upon their land and augment their income.  It was felt that the long-term loans that farmers needed for the purposes would have to be made by a separate set of credit institutions.  This realization led to formation of long-term cooperative credit sector.  The first long term cooperative credit institution in the name of ‘Land Mortgage Bank’ was established in Punjab in 1920.  In Bengal 5 Land Mortgage Banks were established in 1934-35, of which Birbhum Land Mortgage Bank was one of them and the other four Banks were situated in the erstwhile East Pakistan.  At the time of independence, i.e., on 15th August, 1947 there were two Land Mortgage Banks in West Bengal, viz. Birbhum Land Mortgage Bank and Burdwan Land Mortgage Bank.  With these two Long Term Coop. Credit Institutions West Bengal started its journey in the long term cooperative credit sector. The West Bengal Central Co-operative Land Mortgage Bank, which is  presently called  ‘The West Bengal State Cooperative Agriculture & Rural Development Bank Ltd.’ (WBSCARDB Ltd.) is the  Apex Long Term Coop Credit Institution.  It was registered on 07.01.1958 having the Registration No. 1 of 1958. The Bank started its operation in the same year.  The Bank was engaged in providing long term and medium term credit under farm, non-farm and housing sector.  Gradually, 22 Land Mortgage Banks were established in different districts / sub-divisions enhancing the total no. to 24.  In two districts viz. Darjeeling and Purulia no Land Mortgage Banks were set up and long term cooperative credit was routed through the branches of the Apex Bank in those two districts.  The Land Mortgage Bank with the change of time and need mutated twice.  The first mutation took place during mid seventies and Land Mortgage Bank was renamed as ‘Land Development Bank’ and thereafter, during mid nineties it was further mutated and assumed the name of ‘The West Bengal State Cooperative Agriculture & Rural Development Bank Ltd. at the apex level and ‘Primary Cooperative Agriculture & Rural Development Bank Ltd.’ at the primary level.  The long-term cooperative credit sector is a two-tier organization. 

Background
The long term cooperative credit structure was established with the following background:
*          Shrinkage of cultivable area
*          Urgent need of expansion of cultivated area and cultivable season.
*          Requirement of ‘mechanization’ of farming practices and introduction of ‘irrigation’ practices and increase of irrigated area.
*          Necessity of rapid expansion of ST-SAO credit facility.
*          Necessity of diversification of farm income through agri-allied and non-farm activities to increase economic capacity and resist any kind of distress sells.
*          Adaptation of modern and scientific methods of farming and related activities.
*          General employment

Objective
 Following are the objectives of the long   term cooperative credit sector.
*          Selection of potential scheme and corresponding area for utilization.
*          Preparation / consideration of necessary viable schemes along with project report.
*          Creation of awareness among the prospective borrowers
*          Establishment of   close relationship between borrower and financing ARDB.
*          Properly running of the democratic LT Coop. organization.
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Operative Environment
 
Long term cooperative credit sector has been working under the following operating environment:

*          Increase of prospective borrower and their credit-need in rural area.
*          Different long term Govt. schemes to uplift economic condition of rural areas.
*          Initiative of different Govt. officials and strong network of LTCC structure.
*          Direct intervention of public representative in the form of non-officials (BODs).
*          Constituting Farmers’ Club for extending help to the potential borrowers vis-a-vis recovery from borrowing.
*          Constitution of SHGs for the women for economic development.
Operating Frame-work
Long term cooperative credit structure has been working under the administrative support and direction of the following departments and organizations:

*          Cooperation Department, Cooperation Directorate and ARCS of different ranges
of Government of West Bengal.
*          NABARD – direct intervention.
*          Agriculture, FFDA, Animal Husbandry, DIC, DRDC, etc. Dept. of State Govt. and District and Block administration – indirect intervention.8p

Regulatory environment

Following are the regulatory and supervising authority of cooperative credit institutions under long term cooperative credit institutions

*          Statutory and running audit of SCARDB by Directorate of Coop. Audit, State 
            Govt.
*          Statutory audit of PCARDB by Directorate of Coop. Audit, State Govt.
*          Yearly NABARD inspection for SCARDB.
*          NABARD inspection of PCARDB on occasional and selective basis.
*          Need base inspection by Co.-op. Dept./RCS/ARCS at the range level.
*          One NABARD’s representative to overview the workings of the Apex Bank.
*          Similarly, one representative of the Apex Bank NABARD to aid, advise and 
            regulate the workings of PCARDBs.
*          One RCS representative in the Loan Committee at the Apex Bank / PCARDBs.
*          Co-op. Deptt., Govt. of WB is the guarantor of all loans and hence the highest
            regulatory authority.
*          RCS, WB is the Trustee of the WBSCARD Bank Ltd.
 
Primary Activities of the Long-Term Cooperative Credit Structure (LTCCS)

Major Activities
The Bank has been providing loans for Farm sector, Non-Farm sector, Rural Housing Sector.
Repayment period for Medium/Long term loans varies from four (4) Years to fifteen(15) years.
Interest is charged on simple interest system on Reducing Balance method.
No floating interest rate; only fixed interest rate is applicable.

FARM LOAN:

NON-FARM LOAN

HOUSE BUILDING and REPAIRING LOAN

House building loan is available for –

1. Permanent employee of Govt. semi-govt., and other reputed organizations.
2. Established businessman and professionals.
3. Farmer having regular source of income.
4. For a loan up to Rs 2 lakhs, income of the farmer( having no regular recognized source of income)  will be assessed by the Bank      
5. For house repairing the maximum loan limit is Rs. 5 lakh.

The project cost will be determined form the sanctioned plan and supportive estimates.

SHORT TERM LOAN

SOME NEW AREA OF ACTIVITIES OF WBSCARDB Ltd.

Various Programmes for Women Development:

Women constitute one third of the labour force. Various schemes for financing farm and non-farm sector activities through banking system are available both to men and women. In order to give focus to women in various developmental activities and to increase their access to institutional credit, NABARD has formulated various programmes.      

Assistance to Rural Women for Rural Non Farm Development (ARWIND)

ARWIND, a single window scheme comprising credit as well as promotional components, has been formulated with the objective of entrepreneurial development among rural women. Under the scheme, assistance is available for activities like Escort Services (helping actual setting up of units), Common Facility Centers/ Service Centers, Setting up of Mother Units, Product Design, Quality control, etc. NABARD Provides100% refinance to banks under the scheme. As on 31 March 2007, Rs.3.13 crore has been sanctioned for 143 projects covering 10483 rural women in 22 states.

Assistance for Marketing of Non –Farm Products of Rural Women (MAHIMA)

Recognizing the importance of marketing as a crucial link for women entrepreneurs, the scheme ‘MAHIMA” was introduced. It aims at supporting various for promoting marketing of items produced by rural women. Assistance is available for various aspects related to marketing like survey, capacity building, technology upgradation, branding, packaging, publicity, setting up of showrooms/sale outlets etc. NABARD provides 100% refinance to banks under the scheme. As on 31 March 2007, 35 projects in 12 States were supported with assistance of Rs. 68.65 lakh.

Development of Women through Area Programme (DEWTA)

In order to respond to the need for an integrated and holistic approach to the development of women entrepreneurs, DEWTA scheme is implemented by three RRBs on a pilot basis. DEWTA scheme will identify the skill up gradation, capacity building and credit needs of women and endeavour to fulfill the same over a period of three years. Grant assistance is likely to be sanctioned under the scheme.

Besides above all kind of loans are available from the ARDBanks/ Vikas bank as per terms and conditions as mentioned is the loan manual. The women are given extra interest 0.25% more than the usual rule for deposits and similarly 0.50% rebate is to be allowed on lending to women w.e.f. 1st April 2008.

Farmers’ Club:-

Farmers’ Club is an unregistered village level organization recognized by NABARD. The Club constitutes at least 10 and above members including the Chief and Associated coordinators with in one / two villages avoiding defaulters to Bank/Credit institution

Main objectives:

• Facilitating development through credit.
• Bridging between Bank and ultimate beneficiaries.
• To impart technical know-how at village level with the help of resourced persons.
• To arrange community development activities.
• To act as extended hands of the Bank.
• To promote Self Help Groups in the area.

NABARD extends financial support for organizing / maintaining Farmers’ Club through bank on a sharing basis. Besides granting financial support, awarding best three Clubs at district level is also arranged by NABARD.