One of the most important takeaways from the cooperative conclave held recently in Patna was Union Minister Radha Mohan Singh’s assertion that he has rejected the Gandhi panel recommendations on conversion of urban cooperative banks.
The matter was raised by NCUI President Chandra Pal Singh Yadav while he was speaking in S K Memorial Hall in Patna. Replying to this the Union Minister said from dais “Chandra Palji has dated information; he is correct as far as the existence of such recommendations made by the RBI panel is concerned but he is not posted with the latest development.
“I rejected the file as soon as it landed at my desk. Such efforts to weaken cooperative could never succeed till I and Narendra Modiji are there”, he said emphatically.
It may be noted that the Reserve Bank of India (RBI) has submitted recommendations calling for conversion of banks doing the Rs 20,000 crore business into commercial ones.
Cooperators cutting party lines have argued that cooperative and especially the Urban Coop Banks should be allowed to grow to their full potential and restrictions not be imposed on their aspirations.
The limiting factor for UCBs has been that they cannot participate in the 12 core business activities owing to the tag ‘cooperative’ such as road constructions, offering bank guarantees and other things.
Union Minister, however, chose to remain silent on other concerns of cooperative such as IT exemption which was withdrawn by the UPA govt under P Chidambaram.
Sahakar Bharati leaders have also made all-out efforts to do away with the provision and apprised the NDA leaders of their opinion. NAFCUB, NCUI and all other cooperative organizations have also been demanding its withdrawal.