The Telangana government is likely to bring in a new cooperative Act to streamline the cooperative banking system in the state and therefore may postpone the elections to DCCBs by half a year to ensure the passage of the new Act Telangana Today.
The terms of the governing bodies of DCCBs will end by January 2018.
Sources say following the implementation of recommendations made by the Vaidyanathan Committee in undivided Andhra Pradesh, most of DCCBs were found breaching the banking norms and indulging in large-scale illegal activities.
District Cooperative Central Banks were noticed having no proper control over primary agriculture cooperative societies.
This explains why the state govt is resolved to bring about changes in the existing system prompting banks and PACS to be accountable.
The new cooperative Act is likely to be passed in the state Assembly soon.
