Money & Banking

District co-op bank opposes Nabard fiat

Our Bureau Mangalore | Updated on August 12, 2013 Published on August 12, 2013

The South Canara District Central Cooperative (SCDCC) Bank has opposed the recent circular by Nabard (National Bank for Agriculture and Rural Development) on primary agriculture credit societies (PACS).

Addressing presspersons here on Monday, M.N. Rajendra Kumar, president of SCDCC Bank, said that in a circular dated July 22, Nabard has asked the PACS to become the business correspondents of district central cooperative banks. They can neither take the deposits nor disburse loans.

Though such a move may strengthen the district central cooperative banks as they will get hold of the asset and liabilities of PACS, it will weaken the cooperative movement at the grassroots level, he said. The PACS play a major role in credit disbursement and recovery at rural level, he said.

These societies are the direct link to the people in rural areas, and they help in the rural development. Any move to make them business correspondents would affect the cooperative movement. Karnataka has around 4,800 PACS.

Kumar said that the chiefs of all the district central cooperative banks in the state would meet in Bangalore on August 16. They would discuss this issue, and convey their opposition to the State Government on this move.

He said that SCDCC Bank would also convene a meeting of the chiefs of all the PACS in Dakshina Kannada and Udupi districts very soon.


Published on August 12, 2013
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