BANKING

Branch: Coimbatore District Central Co-operative Bank

(CDCC)
General Manager: A.Kanmani
Outline:
Chapter-1 Introduction-definition-objectives of bank-types of
bank-common types of banks-typical services
banks offer-common banking products and services

Chapter-2 why the co-operative centeral bank created-list of

co-operative bank in tamilnadu-
functinsestablishment of co-operative bank in
indiastructure of co-operative banking-short-term
rural co-operative credit structure-capital-growth
Chapter-3 Land Development Banks (LDBs) or Cooperative
Agricultural and Rural Development Banks
(CARDBs)-loans and advances-defects of land
development-uneven growth-problem of overdues-
lack of trained staff-over defectsalternative credit
source-cheap rural creditproductive borrowing-
improvement in farming methods-role of
cooperative bank before1969-role of cooperative
bank after 1969-cooperative department

Chapter-4 principles of cooperative- Tamilnadu Legislative

Assembly announcement 2017-2018
Chapter-5 introduction-definition-objectives of bank-types of
bank-common types of banks-typical services
banks offer-common banking products and
services
 Chapter-1
Introduction:
Banking is the business of protecting money for
others. Banks lend this money, generating interest that
creates profits for the bank and its customers.

A bank is a financial institution licensed to accept

deposits and make loans. But they may also perform other
financial services.

The term “bank” can refer to many different types of

financial institutions — including bank and trust companies,
savings and loan associations, credit unions or any other type
of institution that accepts deposits.

Definition:
Banking is defined as “Accepting of deposits of
money from public for the purpose of Lending or Investment,
repayable on demand or otherwise and withdrawable by
cheque, draft, or otherwise”

Banking can be defined as the business activity of

accepting and safeguarding money owned by other
individuals and entities, and then lending out this money in
order to earn a profit. However, with the passage of time, the
activities covered by banking business have widened and
now various other services are also offered by banks. The
banking services these days include issuance of debit and
credit cards, providing safe custody of valuable items,
 lockers, ATM services and online transfer of funds across the
country / world.

Objectives of Bank:
1. To establish as an institution for maximizing profits and to
conduct overall economic activities.

2. To collect savings or idle money from the public at a lower

rate of interests and lend these public money at a higher rate
of interests.

3. To create propensity of savings amongst the people.

4. To motivate people for investing money with a view to
bringing solvency in them .

5. To create money against money as an alternative for

enhancing supply of money.

6. To build up capital through savings.

7. To expedite investments.
8. To extend services to the customers.
9. To maintain economic stability by means of controlling
money market.

10. To extend co-operation and advices to the Govt. on economic

issues.

11. To assist the Govt. for trade& business and socioeconomic

development.

12. To issue and control notes and currency as a central bank.

13. To maintain and control exchange rates as a central bank.

Types of bank:
There are several types of banks, typically grouped
into a category based on the type of business they perform.
Banks in a certain category offer similar services.

Some banks may focus on consumers while others

focus on investments, corporations or other sectors of
financial services. Whether you are looking to manage your
personal finances or grow your business, here is a list of
common types of banks unique to every need.

Common Types of Banks:

Retail or Consumer Banks:

Retail banks — also known as consumer banks —
offer banking services to the general public. These include
checking, savings and retirement accounts along with
consumer loans — such as home and auto loans.

Credit Unions:
Unlike most banks which strive to make a profit for
shareholders, credit unions are not-for-profit institutions that
accept deposits and make loans. They are owned by their
members, passing any earnings back to their membership
instead of shareholders. Credit union membership is usually
limited to people who work or live in a certain area.
Savings and Loan Associations:
Also called thrifts or S&Ls, savings and loan
associations focus primarily on helping people become
homeowners. Federal law limits the types of loans and
commercial accounts S&Ls can take part in. But they may
offer higher interest rates to depositors to raise money for
mortgage loans.

Commercial Banks:
Commercial banks are standalone institutions or
departments within a bank that focus on corporate,
government, small business or nonprofit customers. They
tend to specialize in financial products and services tailored
to the needs of these large entities.

Community Development Banks:

Smaller than commercial banks, community
development banks also called CD banks focus on their local
community. They are typically created to provide financial
services including deposits and loans in underserved
communities.

Investment Banks:
Investment banks provide complex financial services
to clients, such as corporations, large nonprofits, pension
funds and governments. Services may include working as an
intermediary in mergers and acquisitions or handling the
work needed for a client to take their company public.
Online-Only Banks:
Online banks also known as virtual banks or
“neobanks” provide e-banking services via websites and
apps. While traditional banks have digital services, onlineonly
banks have no brick-and-mortar branches. This cuts
overhead, allowing the online bank to pass savings to
customers.

Typically, all types of banks act as a go-between —

connecting people who want to put their money somewhere
safe with people who want to borrow money. Banks attract
depositors with the promise of paying interest or other
incentives and turn a profit by charging interest rates and
fees to the people who take out loans.

Typical Services Banks Offer:

Different types of banks provide different services
tailored to their customers. There are some relatively
common banking services and products that are both tailored
to individuals and widely available through virtually all
consumer banks and credit unions.

Common Banking Products and Services:

Checking Accounts:
One of the most common consumer banking
services, checking accounts allow you to store and manage
your money, so you can pay for goods and services directly
from your account. It can be tied to direct deposits, ATM or
debit cards.

Savings Accounts:
A savings account allows you to separate money you
want to accumulate from money you want to spend. This
service lets you to build up money for some goal while still
giving you quick access to the cash in the account if you need
it.

Certificates of Deposit:
A certificate of deposit or CD allows you to put
money in an account for a specific amount of time from six
months to five years. A CD typically pays a higher interest
rate than a standard savings account.

Money Market Accounts:

A money market account allows you to earn higher
interest rates than traditional savings accounts. However,
they may require a minimum deposit and require you to
maintain a minimum balance. Money market accounts
typically come with FDIC or NCUA insurance protection, debit
cards and check writing abilities.

Loans:
 Consumer banks provide several different types of
loans. These include personal loans to cover unexpected
expenses, auto loans, home equity loans and personal lines
of credit.

Debit Cards:
Debit cards are connected to your checking account,
allowing you to swipe the card at a business and pay for
goods or services directly from that account. They may be
more convenient than carrying cash, but you may be on the
hook for charges to the card if it’s lost or stolen. Check with
your bank about its requirements.

Credit Cards:
Banks issue credit cards to allow you to make
purchases on a line of credit. You borrow money from the
bank each time you use the card, with the promise of paying
it back. You pay interest on these charges unless you pay
your credit card fee in full each month. You may also pay a
fee to use the card.

Chapter-2

Why the Co-operative Central Bank created?

A District Co-operative Central Bank (DCCB) is a rural
cooperative bank operating at the district level in various
parts of India. [1][2] It was established to provide banking to
 the rural hinterland for the agricultural sector with the
branches primarily established in rural and semi-urban areas

List of central cooperative Bank in tamilnadu;

1. Chennai Central Co-operative Bank Ltd.
2. Chidambaranar District Central Co-operative Bank Ltd.
3. Coimbatore District Central Co-opertive Bank Ltd.
4. Cuddalore District Central Co-operative Bank Ltd.
5. Dharampuri District Central Co-operative Bank Ltd. 2
6. Dindigul Central Co-operative Bank Ltd.
7. Erode District Central Co-operative Bank Ltd.
8. Kancheepuram Central co-operative Bank Ltd.
9. Kanyakumari District Central Co-operative Bank Ltd.
10. Kumbakonam Central Co-operative Bank Ltd.
11. Madurai District Central Co-operative Bank Ltd.
12. Nilgiries Central Co-operative Bank Ltd.
13. North Arcot Ambedkar District Central Co-operative Bank
Ltd.
14. Padukkottai Central Co-operative Bank Ltd.
15. Ramanathapuram District Central Co-operative Bank Ltd.
16. Salem District Central Co-operative Bank Ltd.
17. Sivagangai (Pasumpon) District Central Co-operative Bank
Ltd.
18. Thanjavur Central Co-operative Bank Ltd.
19. Thiruvannamali Sambuvarayar District Central Cooperative
Bank Ltd.
20. Tiruchirapalli District Central Co-operative Bank Ltd.
21. Tirunelveli Central Co-operative Bank Ltd.
22. Vellore District Central Cooperative Bank Ltd.
23. Villupuram District Central Co-operative Bank Ltd.
24. Virudhunagar District Central Co-operative Bank Ltd.
25. Tamilnadu Industrial Co-operative Bank It’s process;

Functions;
In keeping with their ‘grassroots’ integration into the
life and ethos of the widest sections of society, co-operative
banks in India are invested with developmental goals among
which financial inclusion has assumed crucial importance.
These institutions play a critical role in last-mile credit
delivery and in extending financial services across the length
and breadth of the country through their geographic and
demographic outreach

Establishment of Co-operative Banks in India;

The co-operative banks in India are well established
financial service organization. The first legislation on
cooperation was passed in 1904. In 1914, the Maclagen
Committee envisaged a three tier structure of co-operative
banking, viz., Primary Agricultural Credit Services (PACs) at
the grass root level, Central Co-operative Banks at the district
level and State Co-operative Banks at State level or Apex
level. The first urban co-operative bank in India was formed
nearly 100 years back in Baroda. The co-operative banks
arrived in India in the beginning of 20th Century as an official
effort to create a new type of institution based on the
principles of co-operative organization and management,
suitable for problems peculiar to Indian conditions. These
banks were conceived as substitutes for money lenders, to
provide timely and adequate short-term and long-term
institutional credit at reasonable rates of interest. In the
formative stage, Co-operative banks were urban co-operative
societies run on community basis and their lending activities
were restricted to meeting credit requirements of their
members. The concept of Urban Co-operative Bank was first
spelt out by Mehta Bhansali Committee in 1939 which
defined on Urban Co-operative Bank. Provisions of Section 5
(CCV) of Banking Regulations Act, 1949 (as applicable to
Cooperative Societies) defined an Urban Co-operative Bank
as a Primary Co-operative Bank other than a Primary Co-
operative Society was made applicable in1966.

Structure of Cooperative Banking:

There are different types of cooperative credit
institutions working in India. These institutions can be
classified into two broad categories- agricultural and
nonagricultural. Agricultural credit institutions dominate the
entire cooperative credit structure. Agricultural credit
 institutions are further divided into short-term agricultural
credit institutions and long-term agricultural credit
institutions. The short-term agricultural credit institutions
which cater to the short-term financial needs of agriculturists
have three-tier federal structure-
(a) at the apex, there is the state cooperative bank in each state;
(b) at the district level, there are central cooperative banks;
(c) at the village level, there are primary agricultural credit
societies. Long-term agricultural credit is provided by the
land development banks.
Short-Term Rural Cooperative Credit Structure:
In rural India, there exists a 3-tier short-term rural
cooperative structure. Tier-I includes state cooperative banks
(SCBs) at the state level; Tier-II includes central cooperative
banks (CCBs) at the district level; and Tier- III includes
primary agricultural credit societies (PACSs).
State Cooperative Banks (SCBs):
Functions and Organisation: State cooperative banks
are the apex institutions in the three-tier cooperative credit
structure, operating at the state level. Every state has a state
cooperative bank. State cooperative banks occupy a unique
position in the cooperative credit structure because of their
three important functions:
(a) They provide a link through which the Reserve Bank of
India provides credit to the cooperatives and thus
participates in the rural finance,
(b) They function as balancing centers for the central
cooperative banks by making available the surplus funds of
some central cooperative banks. The central cooperative
banks are not permitted to borrow or lend among
themselves,
(c) They finance, control and supervise the central
cooperative banks, and, through them, the primary credit
societies. Capital: State cooperative banks obtain their
working capital from own funds, deposits, borrowings and
other sources:
(i) Own funds include share capital and various types
of reserves. Major portion of the share capital is raised
from member cooperative societies and the central
cooperative banks, and the rest is contributed by the
state government. Individual contribution to the share
capital is very small;
(ii) The main source of deposits is also the cooperative
societies and central cooperative banks. The remaining
deposits come from individuals, local bodies and others.
(iii) Borrowings of the state cooperative banks are
mainly from the Reserve Bank and the remaining from
state governments and others.

Central Cooperative Banks (CCBs):

Functions and Organisation:
 Central cooperative banks are in the middle of the
three-tier cooperative credit structure. Central cooperative
banks are of two types:
(a) There can be cooperative banking unions whose
membership is open only to cooperative societies.
(b) There can be mixed central cooperative banks whose
membership is open to both individuals and cooperative
societies. The central cooperative banks in the remaining
states are of this type. The main function of the central
cooperative banks is to provide loans to the primary
cooperative societies. However, some loans are also given to
individuals and others.

Primary Agricultural Credit Societies (PACSs):

Functions and Organisation: Primary agricultural
credit society forms the base in the three-tier cooperative
credit structure. It is a village-level institution which directly
deals with the rural people. It encourages savings among the
agriculturists, accepts deposits from them, gives loans to the
needy borrowers and collects repayments. It serves as the
last link between the ultimate borrowers,
i.e., the rural people, on the one hand, and the higher
agencies,
i.e., Central cooperative bank, state cooperative bank, and
the Reserve Bank of India, on the other hand.
A primary agricultural credit society may be started
with 10 or more persons of a village. The membership fee is
nominal so that even the poorest agriculturist can become a
member. The members of the society have unlimited liability
which means that each member undertakes full responsibility
of the entire loss of the society in case of its failure. The
management of the society is under the control of an elected
body.

Capital:
Land development banks raise their funds from
share capital, reserves, deposits, loans and advances, and
debentures. Debentures form the biggest source of finance.
The debentures are issued by the state land development
banks.
They carry fixed interest, have maturity varying from
20 to 25 years, and are guaranteed by the state government.
These debentures are subscribed by the co-operative banks,
commercial banks, the State Bank of India and the Reserve
Bank of India.
Besides the ordinary debentures, the land
development banks also float rural debentures for the period
upto 7 years. These debentures are subscribed by farmers,
panchayats, and the Reserve Bank. The Reserve Bank
substantially contributes to the finance of land development
banks by extending funds to the state governments for
contributing to the share capital of these banks and by
subscribing to ordinary and rural debentures.
Growth:
In India, the first cooperative land mortgage bank
was organised in Jhang in Punjab in 1920.But the effective
beginning was made in Madras with the establishment of a
central land development bank in 1929. Later on other states
also established such institutions.

Chapter-3

Land Development Banks (LDBs) or Cooperative Agricultural

and Rural Development Banks (CARDBs):
Besides short-term credit, the agriculturists also
need long-term credit for making permanent improvements
in land, for repaying old debts, for purchasing agricultural
machinery and other implements. Traditionally, the longterm
requirements of agriculturists were mainly met by money
lenders and some other agencies. But this source of credit
was found defective and has been responsible for the
exploitation of farmers.
Cooperative banks and commercial banks by their
very nature are not in a position to provide long-term loans
because their deposits are mainly demand (short-term)
deposits. Thus, there was a great need for a specialised
institution for supplying long-term credit to agriculturists.
The establishment of land development banks now known as
cooperative and rural development banks (CARDBs) is an
effort in this direction.
 Loans and Advances:
The land development banks or SCARDBs provide
long-term loans to the agriculturists-
(a) for redemption of old debt,
(b) for improvement of land and methods of cultivation,
(c) purchasing costly machinery, and
(d) in special cases, for purchasing land. These banks grant loans
against the mortgage of land and the period of loan varies
from 15 to 30 years.

Defects of Land Development Banks:

Although numerically the land development banks
have grown over the years, they have not been able to make
much progress in providing long-term finance to the farmer.
The following are the factors responsible for the
unsatisfactory performance of land development banks:

Uneven Growth:
There has been uneven growth of land development
banks. These have shown some progress in the states like
Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra,
Gujrat. Other states have made very little progress. About
half of the states have no land development bank.
Problem of Overdues:
The major problem faced by the land development
banks is the existence of heavy overdues. Moreover, the
overdues are continuously rising over the years. In 1991-92,
the percentage of the overdues 6f the land development
banks has been put between 42 to 44 per cent. Faulty loaning
policies, inadequate supervision, over-utilisation of loans,
ineffective measures for recovery, willful defaulters, etc. are
the main causes of unsatisfactory level of overdues. In view
of the seriousness of the problem, the state governments
have been advised to draw up and implement time-bound
programmes for special recovery drives.

Lack of Trained Staff:

In spite of quantitative growth of the land
development banks, they have not shown much qualitative
improvements in the field of granting loans largely due to
inadequate technical and supervisory staff. Necessary
changes in the legislation of cooperative institutions are also
required if the lending activities are to be diversified for
nontraditional developmental purposes and on the basis of
nonlanded security.

Other Defects:
Other defects of the land development banks can be
summarised below:
(a) These banks charge very high interest rates on the loans
provided by them.
(b) There is much delay and red-tapism in the
granting of loans,
(c) Second loan is not advanced unless the first is not repaid.
(d) Installments and the period of loans are not fixed on the
basis of the repaying capacity of the borrowers.
(e) The procedure of receiving a loan from these banks is so
complicated that the agriculturist is forced
to seek help from the money lender,
(f) Weaker sections of the rural society such as landless
labourers, village artisans and marginal farmers, are generally
unable to secure loans from these banks for their productive
activities simply because they do not have land or adequate
security to offer against loans.
(g) Mostly loans are given for the repayment of old loans and for
development purposes.
Various advantages of cooperative credit institutions
are given below:
Alternative Credit Source:
The main objective of cooperative credit movement
is to provide an effective alternative to the traditional
defective credit system of the village money lender. The
cooperative banks tend to protect the rural population from
the clutches of money lenders. The money lenders have so
far dominated the rural areas and have been exploiting the
poor people by charging very high rates of interest and
manipulating accounts.
Cheap Rural Credit:
Cooperative credit system has cheapened the rural
credit both directly as well as indirectly:
(a) Directly, because the cooperative societies
charge comparatively low interest rates, and
(b) Indirectly, because the presence of
cooperative societies as an alternative agency
has broken money lender’s monopoly, thereby
enforcing him to reduce the rate of interest.

Productive Borrowing:
An important benefit of cooperative credit system is
to bring a change in the nature of loans. Previously the
cultivators used to borrow for consumption and other
unproductive purposes. But, now, they mostly borrow for
productive purposes. Cooperative societies discourage
unproductive borrowing.
Encouragement to Saving and Investment:
Cooperative credit movement has encouraged saving and
investment by developing the habits of thrift among the
agriculturists. Instead of hoarding money the rural people
tend to deposit their savings in the cooperative or other
banking institutions.

Improvement in Farming Methods:

Cooperative societies have also greatly helped in the
introduction of better agricultural methods. Cooperative
credit is available for purchasing improved seeds, chemical
fertilizers, modern implements, etc. The marketing and
processing societies have helped the members to purchase
their inputs cheaply and sell their produce at good prices.

Role of Cooperative Banks before 1969:

Till the nationalisation of major commercial banks in
1969, cooperative societies were practically the only
institutional sources of rural credit. Commercial banks and
other financial institutions hardly provided any credit for
agricultural and other rural activities. Cooperative credit to
the agriculturists as a percentage of total agricultural credit
increased from 3.1 per cent in 1951-52 to 15.5 per cent in
1961-62 and further to 22.7 per cent in 1970-71. On the
other hand, the agricultural credit provided by the
commercial banks as a percentage of total agricultural credit
remained almost negligible and fell from 0.9 percent in
195152 to 0.6 percent in 1961-62 and then rose to 4 per cent
in 1970-71.

Role of Cooperative Banks after 1969:

After the nationalisation of commercial banks in
1969, the government has adopted a multiagency approach.
Under this approach, both cooperative banks and
commercial banks (including regional rural banks) are being
developed to finance the rural sector. But, this new approach
also recognised the prime role to be played by the
cooperative credit institutions in financing rural areas
because of the following reasons:
(a) Co-operative credit societies are best suited to the
socioeconomic conditions of the Indian villages.
(b) A vast network of the cooperative credit societies has
been built over the years throughout the length and breadth
of the country. This network can neither be duplicated nor be
surpassed easily.
(c) The cooperative institutions have developed intimate
knowledge of the local conditions and problems of rural
areas.

Major weaknesses are given below:

I. General Weaknesses of Primary Credit Societies:
Organisational and financial limitations of the primary
credit societies considerably reduce their ability to
provide adequate credit to the rural population.

The All India Rural Credit Review Committee pointed out

the following weaknesses of the primary credit societies:
(a) Cooperative credit still constitutes a small proportion
of the total borrowings of the farmers,
(b) Needs of tenants and small farmers are not fully met.
(c) More primary credit societies are financially weak and
are unable to meet the productionoriented credit needs, (d)
Overdues are increasing alarmingly at all levels,
 (e) Primary credit societies have not been able to provide
adequate and timely credit to the borrowing farmers. II.
Inadequate Coverage:
Despite the fact that the cooperatives have now
covered almost all the rural areas of the country, its rural
household membership is only about 45 per cent. Thus, 55
per cent of rural households are still not covered under the
cooperative credit system.
In fact, the borrowing membership of the primary
credit societies is significantly low and is restricted to a few
states like Maharashtra, Gujrat, Punjab, Haryana, Tamil Nadu
and to relatively rich land owners.

The following cooperative intuitions are functioning in

district;
COOPERATIVE DEPARTMENT:
Sl.No Details of Institution Nos
1 Primary Agriculture Corporate Bank 160
2 Urban Coorperative Societies 8
3 Coorperative Marketing Societies 4
4 Primary Coorperative Societies 7
5 Student Stores 13
6 Labour Contract Societies 2
7 Primary Coorperative Agriculture 6
and Rural Development Bank
8 Coorperative Urban Bank 3
9 Employees Coorperative Societies 76
10 Special Type Societies 2
11 Saravanabava Wholesale stores 1

Chapter-4
PRINCIPLES OF COOPERATION:
ACHIEVEMENT OF COOPERATIVE INSTITUTIONS:
COMMON SERVICE CENTRE:

In Coimbatore Region 181 CSC are functioning. 2017-2018

achievement – Services 352016 – Net profit – Rs.122.30
Lakhs
o 76 ECS – Loan issues 2017-2018 – Members 10642 –
Amt.issued Rs.336.24 Crores, Education Loan 700
Members – Amt. Rs.7.42 Crores. o CROP lOAN – 2017-2018
Target Rs.385.00 Crores –
Members 57426 – Amt. Rs.305.45 Crore o MT
LOAN – 2017-2018 Target Rs.20.60 Crores –
Members 2405 – Amt. Rs.18.83 Crore o JEWEL LOAN
– 2017-2018 Target Rs.1211.00 Crores –
Members 105934 – Amt. Rs.375.51 Crore o SELF HELP
GROUP – 2017-2018 Target Rs.22.45 Crores –
550 Gruops – Amt. Rs.6.59 Crore o PRODUCE
PLEDGE LOAN – 2017-2018 Target Rs.3.40
Crores – Members 164– Amt. Rs.2.96 Crore o PETTY
TRADERS – 2017-2018 Target Rs.4.25 Crores –
Members 3949 (JLG) – Amt. Rs.5.98 Crore o
DIFFERENTLY ABLED PERSONS – 2017-2018 Target
Rs.100.00 Lakhs – Members 135 – Amt. Rs.0.61 Crores.
o SHARE CAPITAL ASSISTANCE – Urban Cooperative Banks –
19 Disabled Persons – Amt.Sanctoned Rs.47,500/-., 20
SC/ST Members – Amt. Rs.50,000, 20 Women Members
– Amt. Rs.50,000/-
o

MEDICALS:
5 Cooperative Medical & 5 Amma Marundhagams –
Annual sales Rs.227.05 lakhs.

WAIVER 2016:
Short Term Loans – Farmers 61309 – Amt.
Rs.26227.88 lakhs. MT Conversion Loans – Farmers 6109 –
Amt. Rs.1131.80 Lakhs, MT Loans – Farmers 13515 – Amt.
 Rs.4658.12 lakhs – Total farmers 80933 – Amt. Rs.32017.80
Lakhs

CROP INSURANCE:
2016-2017 Crop Insurance issued – Farmers 11023 –
Amt.36.00 Crores.
2017-2018 Kariff & Rafi Season – Crop insurance
collected from farmers 32586 – Amt. Rs.2.80 Cores

E-Governance
In Coimbatore District, 160 Primary Agricultural
Cooperative Credit Societies, 8 Cooperative Urban Credit
Societies, 6 Primary Cooperative Agriculture and Rural Banks,
3 Agricultural Producers Cooperative Marketing Societies, 2
Coimbatore Dist. Saravanabava Consumer Cooperative
Wholesale Stores and District Coop. Press are working as CSC.
In Coimbatore District, 181 CSCs are connected with
egoverance

TAMILNADU LEGISLATIVE ASSEMBLY ANNOUNCEMENT

2017-2018
Hon’ble Chief Minister Announcement – 13 PACCS
New Building – Sanctioned Amt. Rs.260.00 Lakhs (CRDF) –
under construction
Hon’ble Cooperative Minister Announcement
1. 5 PACCS Solar Panel – Sanctioned amt. Rs.20.00 Lakhs
(CRDF) – under progress
2. Chidambaram CMS, Kattumannerkoil Branch – New Building
– Sanctioned Amt. Rs.20.00 Lakhs (CRDF) – under
construction
3. Kuppankuzhi & Eyyalur PACCS – Defender Door –
Sanctioned Amt. Rs.6.00 Lakhs (CRDF) – Completed
4. Cooperative Printing Press New Single Color Offset Machine –
Sanctioned Amt. Rs.30.00 Lakhs (CRDF) – under progress

Chapter-5
The department i`m worked:

Fixed deposit (FD):

In a Fixed Deposit, you put a lump sum in your bank
for a fixed tenure at an agreed rate of interest. At the end of
the tenure, you receive the amount you have invested plus
compound interest. FDs are also called term deposits.

Types of Fixed Deposit

Fixed Deposits are the type term deposit accounts
that let you earn interest by depositing an amount for a
certain period of time. There are different types of fixed
deposits available by almost all the major banks in India. A
fixed deposit is the best fit for risk-averse investors which lets
them earn interest on the deposited amount over a period of
time. The moment you put your money, it gets locked and
you can avail the interest amount upon maturity.

Overview of fixed deposits:

Fixed deposits A type of deposits where you
can earn interest by
depositing a fixed amount for
certain tenure.
Who provides? All banks and NBFCs
How to open Can be opened online and
offline
Risk meter No risk as it is governed by RBI

Standard
Types of FDs Tax savings
Special
Corporate
Regular
Senior citizen
flexi
Is there any fixed deposit Yes. NRE (Non-resident
scheme for NRIs? ordinary)
Premature withdrawal Subject to banks norms
(usually, there is a penalty on
the interest rate)
How to calculate FD interest? You can use the FD interest
rate calculator available over
the internet.
 Tax Saving Fixed Deposits
As the name implies, these deposits are instrumental
in saving tax and are available in almost all banks.

• One can get a tax exemption up to Rs. 1.5 lakh in a year

• These FDs have a lock-in period of 5 years during which you

cannot withdraw the amount

• Only one-time lumpsum deposits are allowed

Special Fixed Deposits

Like standard FDs, these funds are also invested for
specific time periods. The only difference is if you don't
withdraw the money for the specified period, you will earn
higher interest on it than Standard FDs.

Regular Income Fixed Deposits

If you have a limited income and depend on the
interest from bank deposits for your monthly expenses, this
type of FD is the best fit for you. You can opt for either a
monthly or quarterly interest payout.

Senior Citizen Fixed Deposit

The senior citizens' fixed deposit scheme allows citizens aged

more than 60 years to open an FD account.
• These FD schemes provide an additional interest rate of
around 0.50% over the regular interest rates

• Tenures are also flexible under this scheme

Flexi Fixed Deposit

These are the type of FDs that are linked to your
savings account.

• You can create an FD with an initial deposit of your

choice and link it to your savings account.

• You can also limit your savings account and any excess
will be transferred to the FD.

Corporate and Other Fixed Deposits Offering

High ROI:
The deposit made by investors with companies for a
fixed tenure and prescribed rate of interest is called
Corporate/ Company Fixed Deposit. Financial institutions and
Non-Banking Finance Companies (NBFCs) also offer this type
of deposit. Corporate Fixed Deposit schemes offer higher
returns on your investment, but choosing the right company
is imperative. If you choose a good Company FD scheme, you
will generally earn more on your investment than bank FDs
as these schemes offer the highest interest rate on FD. You
can check the credit ratings of the company you want to
invest in from reputed credit rating agencies like CRISIL.
These deposits unsecured, i.e., if the company defaults, the
investor cannot sell the documents to recover his/her
investment, thus making it a bit risky investment option.

Types of FDs for NRIs

There are two types of fixed deposit accounts for
Non-resident Indians available in Indian Banks, viz.
Nonresident External (NRE) and Non-resident Ordinary (NRO)
accounts.

NRE Fixed Deposits

NRE FDs are best suited for those who earn in
foreign currency and who wish to get the amount converted
to Indian currency value. The interesting thing about an NRE
FD account is that the interest earned on the deposit is
taxfree and one can get both principal and the interest
amount as they are completely repatriable. The only
downside is that the money deposited can be affected by
currency rate fluctuations.

NRO Fixed Deposits

The interest income earned through NRO fixed
deposit is taxable at 30%. based on the Income Tax Act, 1961.
Not only the interest earned can be completely repatriated,
but also the principal amount within a certain bracket or set
limit. However, the advantage here is that in the case of NRO
fixed deposits, unlike NRE FDs, there are no exchange rate
fluctuation risks. You can deposit money in foreign or Indian
currency in your NRO account. So, if you stay abroad and
your total income also entails earnings from India, NRO FDs
can be the best fit to manage your funds within India.

Benefits of Fixed Deposits

Fixed Deposits are the best fit for risk-averse
investors and which is the reason why fixed deposits have
always been one of the most preferred choices in India.
However, there are various other key benefits of FDs
explained below.

Guaranteed Returns:
Fixed deposit (FD) accounts provide assured returns
on your investment as the banks are governed by RBI. Hence,
these investments are relatively risk-free when compared to
other forms of investments; moreover, investors receive a
fixed rate of interest on the amount invested.

Higher Interest Rates

Fixed Deposit schemes offer a comparatively higher
rate of interest rate than other forms of traditional
investments such as savings accounts and recurring deposits.

Tax Benefit
Investors can opt for tax saver fixed deposits to avail
of tax benefits up to Rs. 1.5 lakh, as prescribed under Section
80C of the Income Tax Act 1961. However, most FDs
providing tax saver benefits have a lock-in period between 3
to 5 years.
FD at your fingertips
Depositors can open an FD account online within a
few minutes. If you are a customer of the bank you want to
open your account with, you can just log in with your net
banking or mobile banking and apply for the preferred FD.
You can also estimate the returns of FD schemes using an
online FD calculator and choose the scheme that offers the
best interest rate with minimum documentation.