People in rural areas lack reliable avenues to save money. Though they need financial help, they prefer not to approach a bank because they do not understand it`s working and do not trust it. The concept of Thrift Cooperatives (TCs) is far easier for rural people to understand.

Thrift Cooperative (TC) is a voluntary association of individuals who come together to meet their savings, credit, and insurance needs. This organisation provides them savings credit and insurance services through various schemes on the basis of self-help and mutual-aid and on terms and conditions decided by members themselves.

TCs are open to all eligible members of the community. Today, with the rapid progress of the Thrift Movement, TCs are extending services to their members on an everyday basis. The savings of the members need to be used because the interest collected on loans has to be used to pay interest on savings and also to earn surplus.

Sahavikasa began helping rural people to form TCs in the Warangal, Hanumakonda, Siddipeta, Janagama and Karimnagar districts of Telangana, from the year 1990. Women`s Thrift Cooperatives (WTCs) were started in 1990 and Men`s Thrift Cooperatives (MTCs) were set up from the year 1992. 

Thrift cooperative Structure

In the first meeting of the thrift cooperative, all members meet and lay down bylaws and business rules. They also elect committee members, who run the cooperative according to bylaws. In the beginning, usually, the transactions take place one day in a month till the members and committee members become comfortable and gain confidence in the running of the cooperative.

Thrift cooperatives are managed democratically and work on the principles of cooperation, as enunciated by the International Cooperative Alliance (ICA).

Legal Status

TCs and ATCs are registered under the Andhra Pradesh Mutually Aided Cooperative Societies Act of 1995 (Macs Act of 1995)

Thrift Cooperative (TC)

ASSOCIATIONS – support for better services

Associations of Thrift Cooperatives (ATCs) have been formed with the aim of bringing together the best minds in the TCs to come up with solutions, that benefit each individual member. The ATC`s main function is to simplify the functioning of the TC so that the facilities offered are more accessible and effective in meeting the needs of the members.

In an ATC, members are not individuals but thrift cooperatives. An ATC functions more or less on similar lines as a thrift cooperative. Representatives of all member cooperatives form the general body of the ATC. They, in turn, elect a committee to manage the affairs of the association.

The committee of the ATC meets every month to review the progress of the member cooperatives, discuss, resolve problems, if any, review and approve the loans/assistance to member cooperatives.

Apart from the monthly committee meetings, once in six months, the advisory council meeting takes place. The board members of member cooperatives review the performance of each cooperative and also discuss new strategies and schemes for the development of member cooperatives. Once in a year the general body meets reviews and elects members for the positions that become vacant. A convention is conducted by the ATC in which all members of the member cooperatives meet. This is intended for the members to realize their own collective financial and social strength and also to establish their identity in the community.

The services generally provided by an ATC to its member cooperatives are:

• Regular review of the performance
• Provision of stationery
• Organize training to management and staff of member cooperatives
• Assist in submission of returns to the department of cooperation
• Organize Abhaya Nidhi, which ensures that cooperative, guarantors and the deceased member`s family do not suffer when a member with a loan dies.
• Organize optimum utilization of surplus funds through providing loans to its needy member cooperatives
• Provide a platform to share experiences, learn to form each other, develop strategies to overcome obstacles, develop internal control systems, provide audit services, etc

The 272 WTCs formed into 22 associations of women`s thrift cooperatives (AWTCs) and 171 MTCs formed into 15 associations of men`s thrift cooperatives (AMTCs), in all there were 37 associations of thrift cooperatives (ATCs). The membership in women`s thrift cooperatives is 93,464 and in men`s thrift cooperatives is 51,934, the overall total membership is 1,45,398. (The above figures are as of 31.12.2007)

Structure of Association of Thrift Cooperatives (ATC)

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