'RBI not supporting growth of co-ops'

In spite of challenges, co-op sector is moving ahead in DK district, says SCDCC Bank president

SCDCC Bank President M N Rajendra Kumar has said that Reserve Bank of India (RBI) is not allowing co-operative societies to progress. By issuing several circulars, it is trying to weaken the activities of the co-operative sector.

Delivering a lecture on ‘Challenges in cooperative sectors,’ ‘swachha sahakaar—Swasta sahakar’ organised as a part of  ‘co-operatives and enabling legislation day’ held as a part of 61st All India Cooperative Week, in Mangaluru on Tuesday, he said “owing to lobbying by the commercial banks, the RBI is trying to push down co-operative sectors. In spite of challenges, we have weathered all the storms and moving ahead in Dakshina Kannada district.”

“The State and Central governments depend on Primary Agriculture Co-operative Societies (PACS) to implement its various schemes including zero per cent interest loan and loan waiver scheme for farmers. However, when it comes to support, it helps comemrcialised banks,” he opined.

The Primary Agriculture Co-operative Societies had played an important role in providing access to credit facilities to the farmers in rural areas.  

The Vaidyanathan Committee on reformation of cooperative sector made a recommendation to grant autonomy to co-operative organisations. It was unfortunate that instead of taking initiatives to strengthen the co-operative sector, the RBI was imposing restrictions on co-operative sector, he added. 

“The Education department has issued a circular to all the schools not to open accounts in co-operative societies. In case, if they had opened, then the account should be closed down. However, the schools seek help from the cooperative societies when it comes to raising funds to conduct programmes in their schools. The account of disbursing of loans to agriculture sector by commercial banks is fake. While issuing gold loan, many commercialised banks take RTC of the loan applicant and writes it as agriculture loan. Even while disbursing loan for vehicle, in record, they show it as loan for purchase of vehicle to transport agriculture produce.”

“The government has announced zero per cent interest loan for farmers. However, for the co-operatives, it is a tedious job to get back the interest amount from the government after two and half years of struggle. After sanctioning loan to the applicants, the co-operative societies should prepare an interest bill. The bill will be certified by government official, auditor and an officer from outside the district.”

Minister for Health and Family Welfare U T Khader said that by their very nature, co-operatives are institutions of grassroots democracy. There is a need to promote the concept of cooperation in every sphere of life.  

Karnataka State Sauharda Samyukta Sahakari Director S R Sathishchandra delivered a talk on ‘Opportunities in co-operative sector.’

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