Rural cooperative foundation is a mutual fund organization serving agriculture, countryside and farmers in the community, not a financial institution. The Ministry of Agriculture is responsible for formulating relevant policies and regulations to guide the management and development of rural cooperative foundations. The local agricultural administrative department is the competent department of the rural cooperative foundation. The People's Bank of China shall supervise the business activities of rural cooperative foundations according to law, and deal with the acts of handling deposit and loan business in violation of regulations in conjunction with the administrative department of agriculture. Rural cooperative foundations should safeguard their legitimate rights and interests, standardize their behavior, and relevant departments should, as always, guide and support the healthy development of rural cooperative foundations.

1983, the first rural cooperative fund organization was born in rural areas of Heilongjiang province, which was later called "rural cooperative fund". Under the government's policy of acquiescence before recognition, rural cooperative funds spontaneously organized by such farmers have mushroomed and developed in rural areas throughout the country. By 1992, rural cooperative funds have been established at the township level throughout the country. Village-level cooperative foundations112,500, accounting for 36.7% of the total number of townships (towns) and15.4% of the total number of villages; Farmers are happy to think that their "banks" can always serve agricultural production more directly and conveniently. That's true. From 1990 to 1996, the National Rural Cooperative Foundation invested a total of151500 million yuan for planting and aquaculture production. Among them, 1996 invested 43.3% in agricultural production and 19.9% in rural life services. These two funds for supporting agriculture together account for 63.2% of its total investment, which is much higher than that of Agricultural Bank and credit cooperatives. However, the good times did not last long. 1, 999,1June, under the banner of "standardizing the financial market and rectifying the financial order", a No.3 document in the State Council denied farmers' "second venture" in the field of rural cooperative finance-closing the "Rural Cooperative Foundation".