The Organization

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 Unscrupulous 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 15^th 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 Cooperative Credit Institutions, West Bengal started its journey in the long-term cooperative credit sector.