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History of the BankCompanions co-operative credit society was established on

29th may 1984 with the help of young mens association in Chulna. In the

earlier period, people use to take loan from Sahukars and used to securitize

(Gahaan) their land and house. The system was a major barrier in Chulne's

growth as high interest rates were charged against the loans taken. Feeling

the need to change the system, The Young Mens Association started

collecting Fund from the members and other villagers and once the fund was

collected it was used for those who were in need of the same. With the help

of the fund they (The Young Mens Association) started providing loans at

lower interest rates. This was the foundation of Companions Co-operativeCredit Society Ltd. which improved the financial state of Chulna village.

Today the Companions co-operative society has expanded all over with 3

branches been situated in and across the village.

1.The main branch at The Young Mens Association building, Chulna.

2.Manickpur branch.

3.St. Augustines branch.

Its current employees are 30 and are owned by 7,500 people(shareholders) with the share capital of Rs. 2.5 crore.

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Principles Of Co-

Operation1).Voluntary and open membership:

Co-operatives are voluntary organizations open to all persons. It meansanybody can join the society and there is no compulsion of any kind andaccept the responsibilities of membership without any social, political orreligious discrimination. The society is open to all. There is no compulsion

that once a person has joined co-operative he cannot leave that. This,coming and going is purely voluntary. The member has right to withdrawfrom the society.

Though the membership is open, it does not mean that there cannot be anyrestriction. Membership can be refused to the member who is likely to createhurdles in the working of the society. It only means the door is open to all ofthem who accept the objectives and share the responsibilities of themembership.

2).Democratic Control:

It means that all the co-operative affairs will be manned and controlled bydemocratically elected people. They will be accountable to the members oftheir acts of omission and commission. All the members have equal votingrights (one member one vote).The entire affairs are governed andsupervised by a democratically elected body to conduct the affairs of thesociety and provide guidance wherever necessary. The democratic principleis followed thus

a).The limit of one vote per member irrespective of the number of shares

held.

b).The elimination of voting by proxy.

c).The requirements of regular reports from the executives.

d).Constant education to keep the members informed.

e).Accessibility of co-operative books for inspection by the member.

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3). Limited interest on capital

It is an unique principle, where capital is treated as subsidiary, the prime and

ultimate objective being service to its members. The ICA states, The

economic results arising out of the operations of a society belongs to the

members of that society and shall be distributed in such a manner as would

avoid one member gaining at the expense of others.Capital is a factor of

production and like any other factor; it is also entitled to receive a fair rate of

return. In co-operatives capital cannot dominate. Maximizations of profit in

co-operative like any other type of business organization is considered to beinconsistent with the principles of co-operation.

4).Equitable Distribution of Surplus:

According to this principle, in a co-operative society, while serving to its

members, profit may be a by-product. But, Profit motive is bad. Such profit or

surplus earned by a co-operative society shall be distributed according to the

decision of members. Limited interest (dividend) on capital can be paid to

the members in proportion to their transactions with the society, after

making provision for development of business and social welfare activities. In

a co-operative organization, the surplus is distributed on the basis of the

member dealings with a society.

5).Self-help and mutual-help:

Co-operatives are meant for those who are economically weak. In order topromote their economic interest and strengthen themselves, they cometogether and form a co-operative society, pool their resources and worktogether for mutual benefit. The benefit which comes out of collective effortsis shared by all the participants. Moreover, individually a weak person maynot be able to withstand the exploitations of the stronger. But a largernumber of people of his standard having common economic need, when

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work together combined by pooling their resources can strengthen theirposition and establish them in a suitable place in the society.

Followed by bank:

Co-operative credit society was formed to help the poor farmers of thevillage. Hence this bank collects money from the members in form of sharesand helps the poor members in form of loan.

6).Co-operative Education:

According to the ICA, All co-operative societies shall make provision for theeducation of their members, officers and employees and the general public,in the principles and techniques of co-operation both economic anddemocratic. This principle states that wide publicity should be given to the

principles of co-operation. It is with the development of proper educationthat people will join willingly the co-operative. All the people should be keptinformed about the activities of the co-operatives.

Co-operative education principle is discussed in three aspects .They are

a).Education for Members:

Most of the member of co-operative society is poor and illiterate inorder to make known to them the principles of the particular co-operativesociety and get their active participation in the working of the society; co-operative societies spend a lot on educating its members.

b).Education for Office Bearers:

Education for office bearers of co-operative societies need be advanced,technical and thorough both in the lines of co-operation and business

c).Education for Prospective Co-operatives:

To get more people into a particular co-operative sector people shouldbe informed about the principles, its aims and achievements and future

plans.

7).Co-operation among Co-operatives:

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This principle is developed to increase the strength of the co-operatives andto enhance the interdependence among various co-operatives.

The ICA rule states that,All,co-operative organizations in order to serve bestthe interest of their members and communities, shall actively participate inevery practical way with other co-operatives at local, national andinternational levels, having as their aim the achievement of variety of actions

by co-operatives throughout the world.