Summary: In the period from 1911-1936, the co-operative movement in Bengal saw a decline in the quality of its operations with deteriorating financial stability and loan repayments issues in the primary credit societies as well as in central banks. The growth of the movement was affected by the economic depression of 1929, leading to indebtedness and challenges in redeeming debts. The marginalization of weaker societies created an urgent need for liquidation and amalgamation. The central banks that served as key financial intermediaries faced challenges in maintaining fluid resources and following standard investment practices. Despite attempts to improve the movement through various Committees and Acts like the Co-operative Societies Act of 1912, the overall situation highlighted the need for comprehensive economic reconstruction for sustainable growth and stability.