During the British rule, Nicholson a British Officer in India suggested to introduce Raiffersen model of German agricultural credit Cooperatives in India. As a follow-up of that recommendation, the first Cooperative Society Act of 1904 was enacted to enable formation of "agricultural credit cooperatives" in villages in India under Government sponsorship. With the enactment of 1904 Act, Cooperatives were to get a direct legal identity as every agricultural Cooperative was to be registered under that Act only. The 1904 Cooperative Societies Act, was repealed by 1912 Cooperative Societies Act which provided facility to form of Cooperative societies other than credit. Under 1919 Administrative Reforms act , Cooperatives was made a provincial subject making each province responsible for Cooperative development.

In 1942, the British Government enacted the Multi-Unit Cooperative Societies Act, 1942 with an object to cover societies whose operations are extended to more than one state. The impulses of the Indian freedom movement gave birth to many initiatives and institutions in the post independence era in India and armed with an experience of 42 years in the working of Multi Unit Cooperative Societies and the Multi-Unit Cooperative Societies Act, 1942, the Central Government enacted a comprehensive Act known as Multi State Cooperative Societies Act, 1984 and repealing the Act of 1942.

The administrative reforms act of 1919 gave powers to the provinces to enact their own cooperative laws. The provinces enacted their respective acts to ensure the growth of cooperative movement in their area. The Madras cooperative societies act of 1932 is the first piece of legislation in the state, later it was amended in the year 1961 and again in 1983 as Tamilnadu Cooperative societies Act 1983 which came in to force from 13/4/1988.

The model cooperative societies act of 1991 was enacted to with an objective of voluntary formation and democratic functioning of cooperatives as people institution based on self-help and mutual help to enable people to promote the people’s economic social betterment. As per the act the powers of the Registrar and the Government was greatly reduced. Many states enacted parallel cooperative societies acts.

First cooperative societies in India

 In India, the cooperative movement started in a small village viz. Tirur in the present Tiruvallur district in 1904 which is the first step in starting of rural credit society there. Now the society functioning on sound line.

First Urban Cooperative Bank In India

In the year 1904 itself The Registrar has taken steps to form the first Urban bank of India’ the Kanchipuram Urban Cooperative Bank” at kanchipuram

First Consumer cooperative society in India

The Triplicane Urban cooperative society Ltd popularly known as TUCS Ltd is the pioneer of consumer cooperative movement in India. The society was organized on 9/4/1904. The first president of the society was Rt. Honb’le V.S.Sreenivasa Sastri.

First State Cooperative bank In India

In the year 1905, the Government of erstwhile Madras presidency has accorded permission to establish the first central cooperative bank of India which has jurisdiction all over the presidency. Later it was converted in to Tamilnadu state cooperative bank. Now it is the apex cooperative bank of the state of Tamilnadu (TNSC bank)