The main task of rural credit cooperatives is to raise idle funds in rural areas and provide financial services for agriculture, farmers and rural economic development. In accordance with the provisions of national laws and financial policies, organize and adjust rural funds, support agricultural production and comprehensive rural development, and support various forms of cooperative economy and family economy.
Institutional characteristics:
As a banking financial institution, rural credit cooperatives have their own characteristics, mainly manifested in:
1, farmers and other individuals in rural areas jointly form cooperative financial organizations whose main purpose is mutual assistance. Its business operation is managed and operated by the personnel designated by the members on the basis of democratic election and is responsible to the members. Its highest authority is the member congress, and the executive body responsible for managing specific affairs and business operations is the Council.
2. The main sources of funds are shares paid by cooperative members, retained provident fund and absorbed deposits; Loans are mainly used to solve the capital needs of its members. At first, it mainly issued short-term production and living loans and consumer loans. Later, with the economic development, it gradually broadened the channels of borrowing, which is no different from commercial bank loans.
3. Because the business object is a cooperative member, the business process is simple and flexible. The main task of rural credit cooperatives is to organize and adjust rural funds, support agricultural production and comprehensive rural development, and support various forms of cooperative economy and family economy in accordance with the provisions of national laws and financial policies.