| He said the taskforce on reviving rural cooperative banks, which was expected to submit its report shortly, would suggest ways to evolve an appropriate regulatory framework and also look at other measures to improve their efficiency and viability. |
| "We are seriously engaged in considering possible constitutional amendments to ensure the democratic, autonomous and professional functioning of our cooperatives," Singh said in his address at a conference to mark the centenary celebrations of cooperatives in the country. |
| He added that the amendments would ensure the empowerment of cooperatives and see to it that their rights were incorporated in the Constitution so that no state law could abrogate them. |
| Singh said corporate governance and accountability also needed to be improved. |
| "In this respect, the recent failures of high-profile urban cooperative banks is not exactly a shining example of governance. Never before has the need for restoring customer confidence in the cooperative sector been felt more acutely than at present," he added. |
| The Prime Minister also said the cooperative pyramid in the country was weak mainly due to mounting transaction costs without any real value addition. |
| "This high cost structure is not only affecting resource availability for growth but also leading to the problem of viability and solvency of the entire cooperative system. We would, therefore, need to have a serious look at the multi-tier structure of the cooperative sector," Singh said. |
| Asking cooperatives to reorient themselves, he asked them to improve their efficiency, effectiveness and adaptability to fast-changing economic and social conditions. He also said cooperatives had suffered due to a lack of autonomy and asked them to put in place democratic management set-ups. |
| "The story of Amul is well known and our challenge is to have many more Amuls all over the country," Singh said. |
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