What is The Sarvodaya Credit Co-Operative Society Ltd. ?

The Sarvodaya Credit Co-Operative Society is a Co-Operative Society registered under Rajasthan State Credit Co-Operative Societies Act 2001. by Registration no. 1471V. Sarvodaya Credit Co-Operative Society strictly abides by the State Credit Co-Operative Societies Act.,2001 and doing Finance bussiness among society members.

Q.Cooperativevalues and Principles
Cooperatives are based on the values of self-help, mutual help, self-responsibility, democracy, equality, equity and solidarity. Cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.
The following principles are the guidelines under which cooperatives put their values into practice are :
1. Voluntary and Open Membership.
2. Democratic Member Control.
3. Member Economic Participation.
4. Autonomy and Independence.
5. Education, Training and Information.
6. Cooperation among Cooperatives.
7. Concerns for Community.

Are the deposits with the society safe & secured?

Yes, because Government of India has framed the laws/rules to ensure the security and safety of deposits and Sarvodaya Credit Co-Operative Society Ltd strictly abides by the rules and regulations framed by State Government.The State Co-Operative Societies Act,

Q. What is the purpose of a Cooperative Society?

These three types of business organizations have many things in common, e.g. they all need money, skilled staff and good management. But they differ in their most important aspect, their purpose. The main purpose of a private business organization is to make money. Those who have put in money in the business want to gain a good profit. The purpose of the public enterprise is to offer services to the public: transport, electricity, water, telephone etc. And, finally, the purpose of a cooperative society is to serve the needs of the members, e.g. farm inputs, insurance, loans, advice, information etc. As you can see, the purpose of the private business firm is very simple: to make money (if it is easy to make money is another story). The other two types place other purposes first : service to the public and, in the case of cooperatives serving the needs of the members.

Q. Why Cooperatives ?

Cooperative enterprises, which follow cooperative principles and in the cooperative tradition, have many benefits. Although the specific benefits of each cooperative varies depending on the organization and the needs of its members, several benefits are almost universal:
01. Cooperatives save money
There is no owner/operator to take a profit from the customer; the customer is the owner of a cooperative. Members ensure that their cooperative business provides the best quality products and services at the lowest possible cost.
02. Cooperatives demonstrate economic democracy
In an investor-owned corporation the people who have the most money and shares have the most control over the way the business is run. In a cooperative each member has an equal share and one vote when decisions are made. This is known as economic democracy.
03 Cooperatives operate for the benefit of member/owners
In a cooperative, those with Similar needs act together and pool their resources for mutual gain. As a democratic entity, a cooperative changes with the changing needs of its members.
04 Cooperatives are non-profit
In a cooperative no one person reaps the benefits if the business has been profitable. After bills are paid and money is set aside for operations and improvements, all profits are returned to cooperative members. In a cooperative, the purpose is not to moke money, but to save it.

Q. How does the Society utilize the funds/deposits procured by it?

The Society uses the funds in lending to the members and investments as per the societies act/rules/by-laws. Our lending is in the shape of small loans for business, Micro Finance and other co-operative institutions.

What is the difference between Sarvodaya Credit Co-Operative Society Ltd. and Financial Companies?

Sarvodaya Credit Co-operative Society Ltd. is registered under state Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by Board of Directors who are elected by the members of the society in the Annual General Meetings and the Board of Directors also takes decisions in a collective manner with total transparency. The department of Co-Operatives constantly reviews the functioning of the society at regular intervals. Finance companies are usually owned by individuals and frame the policies according to choice of the owners to maximize returns. The general members/ depositors/ Investors have no role to play. There are some possibilities for the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs/other financial institutions and the statutory liabilities of the institutions are also limited. Sarvodaya Credit Co-Operative Society Ltd. completely lives to its legal liabilities and answerable to its members through its elected members of the Board of Directors. Books of accounts of Sarvodaya Credit Co-Operative Society subject matter of Statutory Audit and the Audited Accounts are submitted to government of India for review and further action, at regular intervals during a year. When you invest your money in Sarvodaya Credit Co-Operative Society you are not only an investor you are a member of the society.

Why the Sarvodaya Credit Co-Operative Society Ltd. is paying ‘Higher Rate of Interest’ to its members/ Investors?

We believe in inculcating the saving habits amongst our members. We are committed to ensure the financial upliftment of our members. The savings thus generated will contribute in the building of our nation directly and indirectly.

How the Sarvodaya Credit Co-Operative Society Ltd. is able to offer Higher Rate of Interest as compared to the Rate of Interest of Commercial societys/ Financial Institutions?

There are varieties reasons which help the society in offering better Rate of Interest. A few of them are listed below:-
Income earned by the society on account of Interest on loans/ advances granted to members which contributes a major part of society’s Income is exempt from Income Tax as per section 80P of Income Tax Act. Therefore the society is able to save some amount which could have otherwise been paid as Tax. The founders of the society felt that some portion of this should be passed on to the members by offering higher Rate of Interest.
C.R.R. Cash Reserve Ratio: - Societys and other financial institutions have to keep about 4 to 5 percent of their deposits in cash or with Reserve Society of India as per R.B.I. regulations. Amount so kept does not earn any interest and reduces the societys’ capacity of lending. While Sarvodaya Credit Co-Operative Society is exempted from this provision we keep minimum cash in hand to meet the day to day requirements and therefore are in a position to lend more and thus earn more and pass the share to the member account holders as high rate of interests.
S.L.R. Statutory Liquidity Ratio :- Societys have to keep the almost 25 to 30% of their deposits in different type of securities which earn them less interest as compared to the Rate of Interest prevailing in the market thus reduced earnings compared to society.
Sarvodaya Credit Co-Operative Society is exempt from maintaining Cash Reserve Ratio (C.R.R.) & Statutory Liquidity Ratio (S.L.R). Sarvodaya Credit Co-Operative Society has better opportunities of managing its funds and earning interest thereon which it is doing sincerely and passing on the benefits of such income to its members/ Investors by offering better rate of Interest.
Society is also investing in other co-operative institutions and the earnings from these are also shared with the member account holders as higher rate of interests.
Societys and other financial institutions are spending huge amounts in the shape of capital expenditures and establishment cost. As compared to societys and N.B.F.Cs’ our operational cost is very low and the benefit of this also is being passed on to the members.

How the Society ensure that the collectors which are collecting the deposits from the member account holders are safe

The process to appoint a collector in our society is very rigorous and all the collectors have to deposit a security deposit in the society before they’re assigned for the collections. The society also ensures the police verification and guarantors before the appointment of the collectors.