Vol. 2, Issue 1, Part M (2016)

Abstract
Accordingly, in Bihar Central Co-operative Banks in the form of central financing agencies came into existence after the passing of the Co-operative Credit Societies Act. 1904. The Cooperative Movement advanced rapidly till 1931 in Bihar. A committee under the chairmanship of Mr. Iyall was set up in 1923. The committee took an optimistic view of the cooperative movement. The general economic prosperity of Bihar between 1917 and 1928 helped in the expansion of the movement. The Central Co-operative Banks began to receive large sums of deposits from the urban people as the bank paid 8 to 9 percent interest. The experts have admitted that soundness in the organisation of the primary agricultural cooperative societies was found to be lacking. The organisation of these societies was hasty from the very start of the movement in Bihar.