Finance is the hub around which the whole economic system revolves and banking is an important as the arteries in the human body. Amongst the other sources of finance banking is highly emphasized today as the need of hour. Banking has a pivotal role to play in economic body. In developing country, like India, where the saving capacity of people is meagre and more than 58* percent population in our country depends on agriculture. Therefore agriculture has been taken as the backbone of Indian economy. That’s why Indian Government laid emphasis to increase the credit to this sector. After the passing of Co-operative Credit Society Act’1904, the tremendous efforts have been done by the govt. to eradicate the problems faced by the farmers and general public. Due the emergence of severe competition from commercial banks, undue intervention of political parties and failure of some cooperative banks the pace of cooperative credit institution has drastically changed and now it become able to fulfil the credit requirements of farmers by providing timely credit facilities to them.