The Hindu Business Line : Cooperative banks union to attend Vaidyanathan panel sitting under protest

THE National Cooperative Agriculture and Rural Development Banks Federation (NCARDBF) will not press the move to dissociate itself from the Vaidyanathan task force on the revival of cooperative credit structure.

The federation will now be represented in a sitting notified by the task force in New Delhi on April 2, but `under protest', sources in the NCARDBF told Business Line.

Protest, because there is no word yet from official quarters on whether concerns aired over the terms of reference will be addressed.

The federation agreed to a review of its decision on the basis of a "personal assurance" conveyed by Prof A. Vaidyanathan that committed the task force to revisiting the issues of revitalisation and functional restructuring of long-term cooperative credit structure. These had not, and still don't find a mention in the official terms of reference, sources said.

"Revitalisation and functional restructuring of the long-term cooperative credit structure with Government support is subsumed in the terms of reference. I assure you that the task force will address them in all seriousness," Prof Vaidyanathan wrote in a letter to Mr K. Sivadasan Nair, Chairman, NCARDBF.

The mandate given to the task force is broader than what was envisaged for the short-term cooperative credit structure.

It requires it to take a broader view of all institutions purveying long-term credit for agriculture and rural development by all agencies including the long-term cooperative credit structure.

At this stage, the task force is primarily concerned with collecting information on various aspects of the operation of the long-term credit structure.

Cooperation of NCARDBF in this regard will go a long way in helping the task force get a true and fair assessment of the position and recommend appropriate strategies for revitalisation of the long-term credit structure.

Earlier, Mr S.S. Palanimanickam, Union Minister of State for Finance, had informed the federation that the task force had submitted its first report recommending an implementable action plan for reviving the cooperative credit structure. In doing so, it had addressed the problems of the short-term credit structure only.

However, the Government had felt that there was an urgent need for strengthening the long-term credit structure for agricultural and rural development.

It had vide order dated January 31 decided to entrust this work to the same task force, which would submit its report by June 30 this year.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex surge continues; reserves top $ 140 b

Bank credit up Rs 13,464 cr

Cooperative banks union to attend Vaidyanathan panel sitting under protest