LOCATE ANY BANK BRANCH IN INDIA
Bank’s
Overview
The Bank
was registered on 10th November 1915 under the name and style of “The Mysore Provincial Cooperative Bank Limited,” under the Mysore
Co-operative Societies Act of 1905. Then , the Bank was not an Apex
institution, as it was not exclusively meant for financing the co-operatives in
the then State of Mysore. Another Bank called the Bangalore Central
Co-operative Bank Limited, Bangalore (which was later converted into an
urban bank), which was registered in 1905, was also financing the
co-operatives. The bank owes its origin to Sri. M.A. Narayan Iyengar, B.A.,
B.L., who was the Registrar of Co-operative Societies at that time.
The Bank
was founded with the objective of financing, inspecting and supervising the
co-operative societies in the Mysore State. Subsequently, several district
co-operative central banks with the jurisdiction of a district were registered.
Five such district central banks were started. But their working was not
satisfactory and they became defunct. As such, the provincial bank started
financing the societies directly. Besides granting of loans, the Bank served as
an outlet for investment of the surplus finds of the co-operative societies in
the State. The Bank thus acts as the balancing centre of the Co-operative
Movement in the State, safeguarding its interests.
At the
time of inception of The Mysore Provincial Co-operative Bank, there was also
another co-operative organization, The Bangalore Central Co-operative Bank,
which was working on similar lines. This was an anomaly, which led to mutual
competition unnecessarily in the matter of financing of co-operative societies.
In order to remove this anomaly and to have only one institution as an Apex
institution exclusively for financing the co-operatives in the State, the
Government appointed an Enquiry Committee known as the Mysore Co-operative
Enquiry Committee, 1920-22 presided over by Mr. Lallubhai Samaldas and the
Committee after reviewing the position of these two banks, made the following
three alternative recommendations to the Government:
To
amalgamate the Mysore Provincial Co-operative Bank and the Bangalore Central
Co-operative Bank.
To create a new Apex Bank.
To convert the Central Co-operative Bank into an urban bank dealing only with
the individuals and to reorganize the Provincial Co-operative Bank into a new
Apex Bank.
The
Bangalore Central Co-operative Bank opposed the amalgamation with the
Provincial Co-operative Bank. Thus, the creation of a new Apex Bank was out of
question. The Government therefore accepted the third suggestion made by the
Committee.
Accordingly,
the Government passed orders on 14/15.9.1925 permitting the Mysore Provisional
Bank to get itself converted into an Apex Bank with the jurisdiction extending
over the entire State for financing the co-operative societies exclusively and
the Bank thereafter was named as the Mysore Provincial Co-operative Apex Bank
Ltd., popularly known as “Apex Bank”.
In the
beginning, the Bank was advancing long-term loans through agricultural credit
co-operatives for land improvements and redemption of prior debts. Large amounts
were given for the above purposes. After the organization of Central
Co-operative Land Mortgage Bank in the year 1929 and Primary Land Mortgage
Banks at the taluk level, the Bank had to give up this model of business. On
account of depression between the years 1925-30, the value of lands and the
prices of agricultural produce fell very steeply and the Bank had to face a lot
of difficulties in the recovery of long term loans advanced. However, during
Second World War, there was rise in the land value and agricultural prices and
the Bank could therefore recover a major portion of its dues.
In order
to meet the loss of business on account of stoppage of long-term loans for land
improvements and redemption of prior debts consequent on the organization of Central
Land Mortgage Bank, the Bank started financing of long-term loans for
construction of houses through House Building and House Construction Societies.
Besides, on account of Second World War, there was great stimulus for consumer
stores activities for distribution of essential commodities through
co-operatives. The Bank undertook the financing of these consumer societies in
the form of cash credit loan. The financing of House Building Societies
continued up to the year 1950 when a separate Apex Institution called the
Mysore State Co-operative House Building Corporation was registered. The
Government thereupon directed the Bank not to issue loans to the House Building
Societies. This was a period of crisis in the history of the Bank. The Bank had
to satisfy itself by financing a few marketing societies by way of crop and
produce loans and a few stores societies.
Fortunately
for the bank, consequent to the amendment to the Reserve Bank of India Act
during 1953-54, the RBI suggested that the State Government should step into
strengthen the capital structure by contributing Rs. 5 lakh towards share
capital of Apex Bank. Accepting the proposal, the State Government contributed
Rs. 5 lakh towards share capital and rehabilitation grand of Rs. 4 lakh to meet
anticipated bad debts.
|
During the year 1956-57, States were reorganized on linguistic basis and the new Mysore State with 19 districts came into existence. Since there were District Cooperative Central Banks in all the integrated districts, all the District Cooperative Central Banks came under the jurisdiction of Apex Bank. Further the State Government notified the Apex Bank as the State Cooperative Bank for the entire state and with the expansion, the responsibility of the Bank increased considerably. The Bank stopped financing of primary societies directly. The membership and share capital held by primary societies in Apex Bank was transferred to the respective District Cooperative Central Banks. There was all round progress in the cooperative movement with the reorganization of the State and also in all spheres of activities of the Apex Bank like share capital, reserves, deposits, borrowings, lending, profit etc. |
What
is IFSC Code
IFSC is
short for Indian Financial System Code and represents the 11 digit character
that you can usually see on your bank’s cheque leaves, or other bank sponsored
material. This 11 character code helps identify the individual bank branches
that participate in the various online money transfer options like NEFT and
RTGS.
How
to find IFSC Code?
Ways
to find IFSC codes
- IFSC code can be found
on cheque leaf and bank passbook of the respective bank.
- Banks and respective
branch list of IFSC codes can be obtained from Reserve Bank of India’s
website.
- The IFSC code of a
particular bank can also be found on the banks’ official website.
Benefits
of IFSC Code
Benefits
of IFSC Code are :
- Helps to identify a
Bank and its respective branch
- Eliminates errors in
the process of fund transfer
- Transfers done with
IFSC such as NEFT, RTGS and IMPS are accurate
What is
MICR Code
MICR
or Magnetic Ink Character Recognition Code is a 9 digit code used for faster
processing of cheques. MICR number is also unique for every bank branch, hence
it helps in uniquely identifying the bank and branch participating in an
Electronic Clearing System (ECS). MICR Code like IFSC is a combination of 3
essential components:
- The first 3 digits represent
the city code.
- The middle 3 represent the
particular bank code.
- The last 3 digits
represent the specific branch code
Benefits
of MICR Code
Benefits
of MICR Codes are:
MICR
code enables efficient, quick and error-free processing of cheques. This is
possible with magnetic ink, reading machines and technology used in MICR.
Difference
between IFSC and MICR code
Magnetic
ink character recognition code (MICR) is a technology that enables faster
processing of cheques by recognizing unique characters printed on the cheque.
MICR consists of a 9 digit code. The
first three digits of the MICR code represent the city, the next three give the
bank code and the last three digits denote the branch of the bank. Similar to
an IFSC code, every branch of a bank has a specific MICR code. While IFSC is
used for online fund transactions, MICR is used for cheques.
Let’s
understand the difference between IFSC and MICR
|
