Co-operative movement in India was started primarily for dealing with the problem of rural credit. The Co-operative movement in Jharkhand started like other states with registration/organization of Rural Agricultural Credit Co-operative Societies with the enactment of Co-operative Societies Act 1904. There is qualitative and quantitative progress in cooperative act after 1904 on time to time according to need of that time. In 1935, Bihar and Orissa Co-operative Societies Act 1935 was enacted and that was amended time to time. Also Bihar Cooperative Societies rules 1959 and Bihar Self supporting Cooperative Societies Act 1996 (Act II, 1997) was enacted in Bihar.

With the re-organization of Jharkhand State, Bihar Co-operative Societies Act 1935 and Bihar Self supporting Co-operative Societies Act 1996 and Bihar Co-operative Societies rules 1959 as amended 1997 have been adopted in Jharkhand state. Jharkhand Co-operative Societies Act 1935 amended in 2011 and 2015 while Jharkhand Self supporting Co-operative Societies Act 1996 was amended in 2015. Jharkhand Co-operative Societies rules have amended in 2012. At present there are one (01) State Co-operative Bank Ltd. and one(01) District Central Co-operative Bank, two(02) Urban Co-operative Banks, six (06) Co-operative federations, one regional handloom weavers Co-operative uUnion, 2028 LAMPS, 2384 PACS, one (01) farmers service society, 77 VMSS and 7100 special type cooperative societies in the state.

Co-operative department has helped in the development of agriculture, banking, credit, agro processing, storage, marketing, fishing & housing etc. It occupies a key position to promote and strengthen the marketing channels, storage facilities, distribution channels, value addition, market information and regular monitoring network system in far- flung areas of the State. It has also engaged in the economic activities like disbursement of credits, distribution of agriculture inputs (seeds, fertilizer & agro chemical) etc.

In Jharkhand, Co-operative movement aims at all round economic and social development of small and marginal farmers, artisans and other societies through its operations. For the upliftment of the people of this state in general and the tribal community in particular co-operatives have played a vital and significant role. Agriculture is the lifeline of the people living in this state. In this context the broad objective of the Co-operative department is to provide short and medium term production credit through a network of LAMPS and PACS through one State level- Jharkhand State Co-operative Bank Ltd. and one District level bank Dhanbad Central Co-Operative Banks. Jharkhand State Co-operative Bank Ltd.(JSCB) was established in 2002 vide it's registration no-4/HQR Dated 18.12.2002 and Bihar State Co-operative Bank Ltd. transferred assets and liabilities of 5 of its branches in Jharkhand to Jharkhand State Co-operative Bank(JSCB) on 31.08.2012. Government of Jharkhand has taken decision to have two tier co-operative credit structures. Under this eight District Central Co-operative bank and their branches merged and become branches of Jharkhand State Co-operative Bank (JSCB) finally from 1 Apr 2017.JSCB is functioning with 105 branches under one management. All affiliated LAMPS/PACS are as service provider.

Co-Operative movement signifies the abolition of the capitalist's monopoly it should pave the way for decentralization. Based on trust, self-help and mutual aid, the Co-Operative societies have been given the responsibility of being accountable, competitive and self-reliant. Formations of such societies are being encouraged for the weaker sections.

The State Government promotes for voluntary formation, autonomous functioning, democratic control and professional management in Co-operative societies for Socio-Economic enhancement as well as amelioration of living style of people of state. Co-operative department provides infrastructure to the LAMPS/PACS as well as working capital. The function of LAMPS and PACS is paddy procurement as well as forest produce on minimum support price and they also provides seeds, fertilizers and agricultural inputs to the beneficiaries.

A cumulative upward movement of capital supply increased productivity – higher real income, higher capital supply is necessary for the sustainable development where these LAMPS & PACS plays a major role in the revitalization of Co-operative credit structure of Jharkhand.