Cooperatives - GS questions based on daily current affairs

ANSWER: Only 2

Explanation:

• In case of cooperative banks, other than multi-state cooperative banks, this period cannot exceed one year.
• The state legislature may make provisions to ensure the participation of members in the management of the cooperative society.
• Further, it may provide for co-operative education and training for its members.

ANSWER: Only 2

Explanation:

• The superintendence, direction and control of the preparation of electoral rolls and the conduct of elections to a co-operative society shall vest in such body, as may be provided by the state legislature.
• Every co-operative society shall be audited by an auditor or auditing firm, appointed by the general body of the co-operative society. But, such an auditor or auditing firm shall be appointed from a panel approved by the State Government or a body authorised by the State Government on this behalf.
• The accounts of every co-operative society shall be audited within six months of the close of the financial year.

ANSWER: Neither 1 nor 2

Explanation:

• The state legislature shall make provisions for co-option of persons having experience in the field of banking, management, finance or specialisation in any other related field, as members of the board.
• But, the number of such co-opted members shall not exceed two (in addition to twenty-one directors).
• Further, the co-opted members shall not have the right to vote in any election of the co-operative society or be eligible to be elected as office bearers of the board.
• The functional directors of a co-operative society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors (that is, twenty one).

ANSWER: 21

Explanation:

• The board shall consist of such number of directors as may be provided by the state legislature.
• But, the maximum number of directors of a co-operative society shall not exceed twenty-one.
• The state legislature shall provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on the board of every co-operative society having members from such a category of persons.
• The term of office of elected members of the board and its office bearers shall be five years from the date of election.

ANSWER: 2, 3

Explanation:
The 97th Constitutional Amendment Act of 2011 gave a constitutional status and protection to co-operative societies. In this context, it made the following three changes in the constitution:

• It made the right to form co-operative societies a fundamental right (Article 191).
• It included a new Directive Principle of State Policy on promotion of co-operative societies (Article 43-B).
• It added a new Part IX-B in the Constitution which is entitled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).

ANSWER: Only 2

Explanation:

• Cooperative farming societies provide a medium for cultivators to enjoy the economies of large-scale farming through pooling of land and management resources.
• Improved connectivity through telecom infrastructure between members and management of the Cooperatives will play a significant role in reducing the response time and opens up tremendous possibilities for improved access to financial services.
• Developments like the Unique Identification (UID) project which provides biometric identity and the focus on financial inclusion agenda by the government provide an avenue for cooperative societies to regain their relevance by becoming active partners in these programmes.
• With the passage of the Insurance Act, Cooperatives have been allowed entry into the insurance, including Agricultural Insurance business. This is a field where Cooperatives have tremendous potential for success, especially if they develop partnerships with other service providers.

ANSWER: All of the above

Explanation:
Few reasons of weakness are -

• There has been an over-bearing role and intervention from the Government, as cooperatives become instruments for delivery of goals set by the Government rather than a people’s movement of self-help.
• The politicization of cooperative leadership eroded the welfare aspect of the movement. Cooperatives are often seen as a stepping stone for their political objectives.
• The small size, the poor resource base and the low participation in the Primary Agricultural Credit Societies (PACS), which has been a significant barrier to increasing the efficiency and volume of credit flows through them.
• The lack of professional management of societies to improve governance.
• Looking at the variations in the regional intensity of the cooperative movement, it becomes apparent that cooperatives have done well in areas where land reform had met with a greater degree of success. This would indicate that sovereign control of farmers over land, the primary factor of production in agriculture, remains an essential prerequisite for the success of cooperatives. At the same time, there is possible link of the cooperative movement’s success to the prevalent demographic and cultural factors.

ANSWER: 1, 2

Explanation:

• Cooperatives find explicit mention in two places in our Constitution.
• First, as part of Article 43 as a Directive Principle which enjoins the State to promote cottage industry through individual or cooperative basis in rural areas and second, in schedule 7 as entries 43 and 44 in the Union list and as entry 32 in the State list.
• Cooperative Societies have been recognized as Constitutional Entities.