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Most of population of the country habitats in the villages. Agriculture is a prime occupation in the villages. In the 19th century, money lenders of the villages satisfied on the high rate of interest the financial need of farmers for their agriculture. In such circumstances the farmers become economically ruined by repaying compound interest. It was the only solution of the financial problem of the farmers if they avail required money on the cheap interest conveniently. For that object the land improvement act 1983 and the loans for the farmers act, 1984 were framed. |
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It was the only solution of the economical problem of the farmers if they can avail the facility of the money required for agriculture on the cheap rate of interest and upon the reasonable conditions then central government and the state government had made efforts to resolve the said issue. At that time, in Europe, Sir Refrigen started rural money lending societies on the co- operative base. Therefore the then government of Madras envisaged applying the concept of the co-operative system with a view to solve the financial problems of the rural areas of India and a result, Sir Federic Nicolsen was sent to the journey to Europe. Sir Nicolsen by making a deep and comprehensive study of the agricultural Financial firms run in Europe presented a detailed report. Essence of the report was: Search Refrigens. Keeping in view the characteristics of the report that triggering the co-operative societies in the rural India like Europe would result into a fruitful and rapid economical progress in the rural areas, such type of co-operative societies were started in the several province of India.
The sporadic efforts of creating such co-operative societies could not get fruitful result. Sir Adverd Law was appointed for the finding out the basis on which the law should be framed by examining this scheme across the country. Taking in account the finding and suggestions quoted by the Sir Adverd Law, “The co-operative money lending societies “ Act was passed in 1904. This law provided constitution the money landing societies for the purpose of money lending by creating finance on the co-operative base as well as urban co-operative societies for the urban areas. In this way, the co-operative activities formally began in 1904 in India. The base of co-operative activities has been founded in India by the government by passing a law. The Co-operative Societies’ Act, 1904 applied to the whole of country. Simultaneously, in the light of the spatial situation, the stat Governments, provincial Government were empowered tpo make required changes therein. |
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