• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kochi , June 28

THE National Federation of State Co-operative Banks (NAFSCOB) has objected to some of the recommendations of the Vaidyanathan Committee, set up to study the problems of the co-operative banks, saying that it will have some adverse impact on the functioning of co-operative banks in the country.

Some of the proposals will give sweeping powers to the Reserve Bank of India and take away the freedom of autonomy of the co-operative banks. It fails to recognise the democratic character of co-operative banks, Mr V. Subramaniam, Managing Director, NAFSCOB, said at a press meet here on Tuesday.

Mr Subramaniam, who was here in connection with the meeting of the Board of Directors and Annual General meeting of the NAFSCOB, pointed out that the Vaidyanathan Committee had put several conditions for re-capitalising weak co-operative banksfor revival.

The Board had taken a decision not to accept any of the recommendations affecting the smooth operations of the co-operative banks, he said.

He cited examples of nationalised banks which were given financial support to the tune of Rs 29,000 crore even after 36 years after nationalisation of banks. But for co-operative banks, which have been in existence for 100 years, the Government has set conditions for re-capitalisation of Rs 15,000 crore.

At present there are 30 State co-operative banks with 900 branches, 368 district Central co-operative banks with 13,000 branches and over a lakh of societies at village levels in the country.

The need of the hour is to make these co-operative banks financially sound. He said that the accumulated loss in co-operative banks is due to the day-to-day interference of State Governments as well as the policies of the Central Government.

Speaking on the occasion, Mr K.R. Aravindakshan, who has been elected as the Chairman, said that the Federation is planning to take up the issue in the Parliament. There was also a move to get approval for the recommendations of the Vaidyanathan Committee directly from Chief Ministers conclave in the ongoing National Development Council meeting without going to Parliament.

NAFSCOB also urged the Government to correct the anomalies in the implementation of transaction tax for non- scheduled district central co-operative banks. These banks are exempted from collecting tax, but when they withdraw money from public sector banks, they have to pay transaction tax, he said.

He pointed out that NAFSCOB, which was established in 1964, has been rendering yeomen service for the cause of co-operative credit movement in India.

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

Stories in this Section
Banks to assist coconut scheme in Kerala

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line