Abstract:The economic condition of India is entirely depended on agriculture. The national income of our country is being contributed by agro-based production. Therefore, welfare of the people, economic development of country depended on agriculture sector. India is a country of villages, where 70 per cent of Indian population are residing in India. Majority of them are working on agriculture related work directly or indirectly. They all belong to lower middle class and below poverty line. Therefore, their economic condition is under developed. Till today, they are leading life in indebtedness. They are very much in need of financial assistance with minimum interest.
The co-operative banks in India are working at grass root level. They are focusing on rural developmental activities with local population and micro-banking among middle- and low-income class of the society. Their main objective is to give importance to agriculture sector.