Coop banking reform Bill on the anvil

The Centre is planning to introduce a Bill to amend co-operative legislation to remove dual control of state governments and the Reserve Bank of India (RBI) on co-operative banks.

Minister of State in the Prime Minister's Office (PMO) Prithviraj Chavan said last Saturday that the Bill, which could be tabled in the next session of Parliament, would provide wider powers to the general bodies of the co-operatives and rid the sector from the control of the state governments, Bringing them under the purview of the RBI.

Chavan was addressing the first National Convention Of Co-operative Credit Societies. Maharashtra Chief Minister Vilasrao Deshmukh appealed to the co-operative credit societies to support to the farming community and liberate them from the clutches of the money lenders.

Deshmukh assured that the state government will allot 10 acres of land to the National Federation of Co-operative Credit Societies (NFCCS) to establish a training institute for the activists in the co-operative sector. The state will also consider the demand for a grant of Rs 5 crore for the institute, he said.

Lalit Gandhi, president, NFCCS, and convener of the meet stressed the need for inclusion of credit societies in the revival package for the co-operative bank sector. He also stressed that the application of norms about non-performing assets (NPAs) to credit societies be deferred to the next financial year.

Gandhi also highlighted the need for greater freedom for settlement of dues and called for non-interference in the recovery efforts of the credit societies. Gandhi assured that the state's credit societies will release Rs 100 crore for the farm sector in the next month.