The State Administrative Council (SAC) has approved amendments to the Jammu and Kashmir Cooperative Societies Act, 1989. The Bill seeks to replace the J&K Cooperative Societies (Amendment) Ordinance, 2018, promulgated by the Governor on June 14 this year, reports Tribune.
The bill seeks to regulate the activities of the self-reliant cooperatives and protect the interests of the members and depositors. Also, it has been noticed that some societies indulge in banking activities without the permission of regulatory authority and have duped the depositors and members of their hard-earned money worth crores, reports PTI.
New sections are being inserted to not only simplify the procedures but also provide aid to attain the objectives of self-reliant cooperatives without any encumbrances, spokesman said.
The amendments will enable the government to constitute a board of management or administrator for a period of two years to manage the affairs of Cooperative Banks instead of six months as contained in the earlier legislation.
The amendment will also help to implement the various revival packages of Central and the state governments for these banks.
It will also enable the government to constitute professional boards for three District Central Cooperative Banks (DCCBs) at Jammu, Baramulla and Anantnag for management of their affairs.
The amendment will also allow them to judiciously use recapitalisation amount of Rs 366.71 crore for attaining and maintaining a capital to risk assets ratio of 9 per cent.
Presently, there is no provision in the Jammu and Kashmir Cooperative Societies Act, 1989, for the appointment of board of management or administrator to manage the affairs of any society beyond the period of six months and also to appoint the members of professional boards as may be necessary to manage the affairs of the DCCBs, the spokesman said.