Concept of Employees co-op. Credit society
Employees Credit society is a financial Institution. It is govern by it's by-laws. It is registered at district level under district registrar office of state government. It can be seen as a mini bank of Employees of a single Company or Organisation or Govt. department. It's financial functions are same as banks. It collects deposit from members in so many different ways like Compulsory Saving , F.D., R.D., Savings, A/c, Member shares, Insurance Schemes and so on. This Collected amount is given as Loan to the needy members. Interest charged on Loan is generally higher than given on deposit and that margin is the profit of the society. Generally this margin is very low in Emp. co-op. Soc. as there base is not to earn profit but it is for the welfare of staff members.