The Role of Co-operatives in Savings & Credit Mobilization(A Comparative Study of Rural Co-operatives of Lekhani VDC and Urban Co-operatives of Baglung Bazaar Baglung District)

Abstract

This study entitled "Role of Co-operative in Savings& Credit Mobilization: A comparison of Rural Cooperatives of Lekhani VDC and Urban Co-operatives of Baglung Bazaar" has been carried out in the partial fulfillment for the degree of Masters of Arts in Economics. This study is concentrated on the objectives to compare and analyze the savings and credit mobilization of rural cooperatives and urban cooperatives, to examine the savings and credit mobilization of rural & urban cooperatives to provide suggestion to support the policy maker for appropriate policy. Both analytical and statistical method and tools have been used for accomplishing the objectives of this study. The duration of this study covered only five years (2065-2070). Data are collectedby both primary and secondary methods. Primary data were collected through questionnaire. Secondary data were taken from annual report and auditreport of sampled four co-operative (Ekata, Sahaj, Gaja and Kadesh SACCOS),books published by cooperative department, cooperative division office ofBaglungDistrict NPC, CBS, NRB and other related dissertations, books, articles, website soon. Tables,charts, bar graphs have been drawn to present and analyze the data. Correlation Coefficient, 2 test have been calculated of the collected data.During the 2065/066 to 2069/070 fiscal period, the research result present that the total savings from urban co-operatives is Rs. 53.19 crore but their netsavings in the same period is Rs.1.22 crore and to talsavings of rural co-operatives is Rs.7.37 crorebut their netsavingsis Rs.1.57 crore. In urban co-operatives high amount is withdrawn but this amount of rural cooperative haslessin percentage. In the same year,the total credit mobilization of the seurban co-operativesis Rs.52.32 crore where as, the net credit mobilization is Rs.8.81 crore. Difference between net savings and net credit mobilization is Rs. 43.51 crore in urbanco- operatives. Between net savings and net credit mobilizations there is a vast differenceof Rs.7.58crore in urban co-operatives. Total credit mobilization ofrural co-operatives in the same period is Rs.30.06 crore and net credit mobilizationis Rs.5.40 crore.The difference between netsavings and net credit mobilization is Rs.3.83 crore in rural co-operatives. In both urban and rural cooperatives netcredit mobilization is greater than netsavings. Statistical results of fiveyears (2065/066-2069/070)period, the correlationof rural savings and credit mobilization is r = 0.95, correlation of savings and credit mobilization of urban co-operative is r =-0.66. Like wise savings and credit mobilization between rural and urban cooperatives is r =-0.029. The dependence of rural savings and credit mobilization is indicated as  2 = 18.85, this result justifies that H 0 is rejected and H is accepted.From the questionnaire it is concluded that the interest rate of co-operatives 1 is 14-16% which is cheaper than that from money lenders.Finally on the basis of the findings some specific suggestions have been recommended. These maybe helpful to the government make cooperative reliable,well managed and capable by bringing special policy and programme for co-operative.