The NABARD directives came for special attack in the meeting of the Board of Directors of NAFSCOB in held at Hyderabad on 4th August, 2013. It asked SCBs and DCCBs to protest against the draconian circular of NABARD.
The Board of Directors of NAFSCOB also noted with concern the views expressed by one of the members of the Expert Committee on the above directives and the gay abandonment with which the RBI and NABARD have initiated steps to systematically destroy one of the time tested mechanism for delivery of rural credit and mobilisation of rural deposits.
The Board of Directors of NAFSCOB resolved to advise the SCBs and DCCBs to convene the state level convention of all PACS in their jurisdiction to discuss the implications of the NABARD directives and to protest against the proposed measures for implementation.
It reiterated and re-endorsed its view that PACS can be ‘Business Correspondents’ only for the purpose of ‘Financial Inclusion’, and certainly not as mere ‘Commission Agents’ as visualised by RBI/NABARD. The PACS will remain non-entities in the system, once their assets and liabilities are transferred to DCCBs.
The Board felt that the Department of Cooperation, the SCB and the DCCBs in each state need to take urgent and concrete concerted measures to convene state level convention of PACS on or before 15th September, 2013. NAFSCOB will also take up the issue with RBI, NABARD, State Governments, Govt. of India, separately.
The Board resolved to request the Department of Cooperation and the Registrar of Cooperative Societies in each state to ensure all measures to protect the functioning of PACS in their present form. They are also requested to note that the contents of the ‘Press Release ‘by NABARD which are no doubt misleading.
