The Hindu Business Line : `Bring rural banks under BR Act'

The All India Co-operative Bank Employees Federation (AICBEF) has lauded the task force's final recommendation on revitalising the agricultural and rural development banks (ADRBs) and has also sought some changes in the report.

Speaking to Business Line, the AICBEF General Secretary, Mr P. Balakrishnan, said `We are generally agreeable to the conditionalities prescribed by the task force except on certain issues such as bringing the ARDBs under the Banking Regulations Act, unitary structure so that all primary cooperative ARDBs (PCARDBs) be treated as branches of State cooperative ARDBs (SCARDBs) among others.'

`The Task Force Chairman, Prof. A. Vaidyanathan, refused to recognise our demand for bringing the ARDBs as banks under the BR Act in the draft report. In the final report, he has left this to the discretion of the regulator. Similarly, he was emphatic on applying non-banking finance companies' prescription for the ARDBs on acceptance of term deposits then, but has suggested evolving of new norms after taking into account the prescriptions for acceptance of deposits by the NBFCs in the final report.'

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