F.A.Q. of Credit Co-op. Society

A Credit Co-operative Society is a financial institution functioning like a mini-bank, where members can open various accounts to invest money—such as Savings, Compulsory Savings, Monthly Recurring, and Fixed Deposits—and can also avail of loans as per their requirements.

There are various types of co-operative societies, but the four major categories are: 1. Credit Society 2. Employee Society 3. PACS (Primary Agricultural Credit Society) 4. Housing Society.

The primary difference is that banks can issue cheque books to account holders, whereas credit societies generally cannot. However, the overall functioning is quite similar. Banks are large organizations registered under the RBI with many branches, while Credit Societies are registered with the District Registrar Office under the State Co-operative Department.

Computerizing your society from the beginning is a wise decision. It prepares you for future growth, ensures accounts are maintained efficiently with minimal staff, and reduces stationery expenses.

To perform transactions, one must first become a member of the society. There are two types of members: Actual Members (who hold shares) and Nominal Members (who do not hold shares). The society functions like a bank, providing deposit and loan facilities to members, along with other services like insurance and lockers.

Our software is designed to be highly user-friendly, so even an operator with basic 12th-pass education can easily learn to use it. There is no need for any special computer courses or technical training. Basic keyboard and computer knowledge is sufficient for staff to operate the software efficiently in day-to-day work.

Money spent on computerization is not an expense but a long-term investment. 1) Once you purchase the software, it serves you for many years. Work that requires 5 to 7 people can be handled by 2 to 3 people with greater accuracy and speed. 2) Manual calculations are prone to human error and are time-consuming, especially when calculating interest for thousands of accounts. A computer can perform these tasks in minutes with 100% accuracy, and audit reports can be prepared almost instantly.

Buildings and furniture require significant capital investment, whereas computer software involves a comparatively small cost and serves as a long-term investment. Invest once, gain for a lifetime. Computerization makes your operations easier, more accurate, and more efficient, helping you build strong goodwill through faster and better service. Therefore, it is wise to plan for computerization before investing in a new building or expensive furniture.

Computerization is not an overhead expense but a long-term investment with returns lasting over a decade. The cost of software and hardware is an asset that qualifies for depreciation benefits. The monthly effective cost is often less than a peon's salary, yet it reduces workload by up to 80%. Whether your society is large or small, computerization is essential for efficiency.

No, it is best to start fresh in the computer system using the current running balances from your manual accounts. Any existing differences can be temporarily placed in a suspense account. Once the manual errors are identified, you can clear the suspense account and adjust the respective balances. Thus, you do not need to rectify all past mistakes before purchasing a computer.