In a significant move that could reignite the debate over autonomy in Andhra Pradesh’s cooperative banking sector, Innespeta Cooperative Urban Bank (UCB), Rajahmundry, is set to place a proposal before its members for conversion from the Andhra Pradesh Cooperative Societies (APCS) Act, 1964, to the Andhra Pradesh Mutually Aided Cooperative Societies (AP MACS) Act, 1995.
The proposal is expected to be taken up for approval at the Annual General Meeting (AGM) scheduled for June 28, following deliberations by the bank’s Board of Directors.
Supporters of the move argue that the AP MACS framework offers greater self-governance, reduced government intervention, and enhanced operational flexibility for cooperative institutions.
Of Andhra Pradesh’s 44 urban cooperative banks, only a handful have migrated to the MACS framework, while several continue to function under the APCS Act.
Sector insiders point out that eight UCBs are currently under administrative control, including Yemmiganur Cooperative Urban Bank, which has been under administration for nearly 30 years, Machilipatnam Cooperative Urban Bank for over 15 years, and Chittoor Cooperative Town Bank for around 15 years.
Supporters of the proposed conversion contend that shifting to the AP MACS Act could help cooperative banks achieve greater autonomy and reduce prolonged administrative intervention.
However, the proposal is expected to face resistance from a section of shareholders and members during the AGM, setting the stage for a closely watched debate on the future governance structure of the bank.
