The present electioneering in states is marked by a torrent of promises being made by politicians and one of the promises being made is to waive loans of farmers in a bid to win their votes.
This mistaken promise could harm the future of the cooperative banks and the country’s economy, said Pawan Kumar Jain, Chairman Jain Cooperative Bank while talking to the Indian Cooperative correspondent here today in the capital.
Waiving of loans could not be a level-headed policy, it could only be counter-productive. Instead of waiving loans, the government should formulate a separate compensation policy for farmers, Mr Jain added.
The policy of loan waiving has invariably backfired and politicians should appreciate this simple fact, Mr Jain added.
According to the Chairman Mr Jain, his bank the Jain Cooperative bank strictly follows the RBI directives and has no problem with the tax imposed by it. The bank has never been punished by the RBI, he claimed.
Established in 1933, the bank has 5 branches, 36 thousand members and an annual turnover of 125 crore. The bank is democratically managed by a board of directors elected every three years.
