The move to amalgamate DCCBs in Uttar Pradesh into one single entity is taking a positive shape. The merger proposal of 50 District Central Cooperative Banks and a State Cooperative Bank is ready and will soon be sent to the government for approval.
It was recently reported that the merger points were agreed between the members of the Academic Technical Committee.
The Academic Technical Committee formed under the Chairmanship of IIM Prof Vikas Srivastava was attended by Principal Secretary Cooperation MVS Ramireddy, Commissioner and Registrar of Cooperatives SBS Rangarao, Additional Commissioner and Additional Registrar (Banking) Andra Vamsi and others. The meeting was held on 2nd September.
The committee thoroughly considered the balance seats of all the co-operative banks which are to be merged. The form of the new bank has also been decided.
According to an estimate, Cooperative Banks in the state are in the loss of Rs 3000 crore which is becoming a biggest obstacle in the merging process.
Although sources said, the state government has assured that it will bear the loss of these banks. The draft merger is being studied by the principal secretary of the cooperative department at the government level. After their recommendations, the draft will be sent to the government for consideration.
The consent of NABARD and the Reserve Bank of India will be taken if the government has agreed. This entire process may take about a year.
The new bank will have 1200 branches.
With the merger the 1200 branches will come under one umbrella. The UP State Cooperative Bank is having over 27 branches in the state. About 7500 active PACCS (PACS) operating in rural areas of the state will work as extension counters of the new bank.
It bears recall that the previous BJP govt in Chhatisgarh was about to merge all district cooperative central banks (DCCBs) into a single state Cooperative Bank called Apex bank in the state but the idea was later jettisoned when a Congress govt came into power.