Under fire from all sides on the issue of controversial Nabard Circular the RBI clarified that its guidelines are not binding. They just amount to a suggestion-should they desire they could use PACS as Business Correspondent. It said the PACS will continue to work under the cooperative societies Act.
There would only be a slight change in business orientation. In this context, Nabard’s clarification has been sent to those PACS that want to shift into BC mode.
Nabard had announced guidelines declaring PACS as business correspondents for district central cooperative banks and state cooperative banks.
In some states cooperative banks have made it into an issue. In this context, it is being stated that directives as announced in July were a clarification of the RBI guidelines.
The RBI had set up an expert committee to examine the short term three tier cooperative structure in July 2012. As per the recommendations of the committee the Pacs would now work as DCCB.
Talking to Indian Cooperative NAFSCOB Managing Director said “we do not trust such verbal assurance; we want Nabard to withdraw the Circular. They (Nabard) may demand implementation report soon, one never knows”.