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TASK FORCE RECOMMENDS RS.14,839 CRORE PACKAGE TO STRENGTHEN COOPERATIVES
New Delhi, Vaisakha 9, 1926 April 29, 2005
A Task Force, set up under the Chairmanship of Prof. A. Vidyanathan, recommended Financial package of Rs.14, 839 crore for strengthening of the cooperative credit institutions. The package covers accumulated losses, unpaid invoked guarantees, receivables from State Governments, return of share capital to State Governments, Human Resources Developments, return of share capital to State Governments, Human Resources Development, conduct of special audits, computerization, implementation costs etc. The likely share of the Centre, State Government and the cooperatives in the assistance has been estimated at 53 per cent, 31 per cent and 16 per cent respectively.
Some other recommendations made by the Task Force are:
· Provision of financial assistance is linked to reforms in cooperative sector.
· Institutional restructuring to make way for democratic, member driven, autonomous and self-reliant institutions.
· Radical changes in the legal framework to empower Reserve Bank of India (RBI) to regular Cooperative Credit Structures.
· Qualitative improvement in personnel in all tiers and at all levels.
· State Governments need to make legislative amendments to enable RBI to exercise its regulatory powers under the Banking Regulation Act. The Task Force has suggested the working draft of a Model Cooperative Law.
· The State Government should formally agree to participate in the revival package. The scheme be kept open for a period of two years for the State Governments to decide on the participation and may be closed for such purpose on 31st March, 2008. Release of funds should be linked to the progress by the State Government in actually implementing the revival package.
· Since cooperative banks should be brought on par with the commercial banks as far as regulatory norms are concerned.
In August 2004, the Government of India constituted a Task Force under the Chairmanship of Prof. A. Vidyanathan to suggest measures for revival of rural cooperative credit institutions. The Task Force has submitted its Report on 15th February, 2005. The Government in principle has accepted the recommendations of the Task Force.
This information was given by Shri Kanti Lal Bhuria, Minister of State for Agriculture, in a written reply to a question in the Rajya Sabha, today.
UM/RC/Hb
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