Published Paper Details:

Money is the greatest invention of man and is the pivot around which the whole economic science rotates. It as acquired so much importance that the modern economy is described as money economy. At present we cannot think of an economy without money because an economy without money cannot function as effectively, efficiently and smoothly as a money economy. Money bas overcome all the difficulties of barter: it has made possible tremendous saving of time and trouble in marshalling of productive facilities and in the distribution of the output of industry to final consumers. It has brought about rapid economic progress by facilitating specialisation and division of labour, technological progress, large scale production of goods and extension of various forms of business and financial organisation Thus, money has been serving the various needs of man. With the passage of time, its forms and functions have changed to a great extent. Before we discuss the forms and functions of money, let us discuss the condition of exchange that were existing before the introduction of money and banking. Co-operative Banking sector plays very important role in economic development. Economic development is a process of upward change, whereby the real per capita income of a country increases over a long period of time through growth and development of business enterprises. In short economic development is a process to increase the real or per capital income of the country involves initiating and constituting change in the structure of business and society. This change is accompanied by growth and increased output, which allows more wealth to be divided by the various participants. So Co-operative Banking serve as catalysts (ie Agent) in the process of industrialization and economic growth and innovations plays a key role in economic development.