The RCS’s Full Form in Law Registered Co-operative Society. In order to require states to assist in the establishment and operation of cooperative societies inside their borders, the Constitution (97th Amendment) Act came into force in 2011.
Different types of RCS:
- The Cooperative Society of Consumers: By cutting out the middleman and purchasing things in bulk from producers or manufacturers, this society helps its members obtain the commodities at a fair price.
- The Cooperative Society of Producers: They are typically established to safeguard the interests of small producers by providing goods such as machinery, tools, and raw materials that they require for manufacturing. This society assists in negotiating the price of the goods because they would be able to do so because they are placing large orders.
- The Society for Cooperative Marketing: Small manufacturers and producers who struggle to market their goods on their own make up this society. The society’s responsibility would be to gather all of the member’s items and sell them in the marketplace.
- Cooperative Finance Association: The purpose of the cooperative society’s formation is to offer its members support and financial aid. Members of society who are in desperate need of a loan are given one, and the interest rate is also comparatively low when compared to private banks and non-banking financial institutions.