Abstract

                                Co-operative societies, the traditional agency still continued to play an important role in the disposetion of credit to farmers. The commercial banks though they have come into the picture only recently in regard to direct finance to agriculture have fared well and in due course can be expected to pay a bigger role as they gain ex- perience and certain concessions are granted as in the case of co-operatives. The co- operatives have in no way been affected by the impact of bank credit. The banks serve as a supplementing agency rather than competing with co-operative agency. Regarding recovery of loans in certain cases co-operatives are in better position as they can recover quickly by instituting arbitration proceeding.

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