In a major development, the Rajasthan government led by Bhajan Lal Sharma issued a circular for empanelment of district central cooperative banks for various government businesses.
The finance department of the state has issued a letter in this connection on Tuesday, which was signed by Naresh Kumar Thakral, Secretary, Finance (Budget).
There are 29 district central cooperative banks in Rajasthan out of which 23 DCCBs are allowed to do various government business including acceptance of deposits, opening of saving accounts of state government bodies, local bodies and others. It is said that the six DCCBs have been excluded because of their negative financial parameters.
Reacting to this development, Rajasthan’s newly appointed Cooperative Secretary Suchi Tyagi hailed the decision and called it ‘historic’.
“It is a positive development as far as the cooperative banking sector is concerned. The decision will strengthen the central cooperative banks and will open new business avenues for them. We will also make efforts for the inclusion of remaining DCCBs”, said Tyagi who is the administrator in Rajasthan State Cooperative Bank.
In his comment, Kota District Central Cooperative Bank Managing Director Balvinder Gill said, “It is for the first time in the history that CCBs are allowed to do government business. The government departments, local bodies, autonomous institutions and state companies can park their deposits and do investments with the CCBs”.
Rajasthan Cooperative Bank Employees Union Secretary Surajbhan Singh expressed concern about the exclusion of six district central cooperative banks. The exclusion sends the wrong message to customers who are associated with these banks and raises questions about their banking license.
He further urged the cooperative minister, principal secretary cooperation and others for their interference on the matter and made an effort in allowing all the DCCBs to do business with the government.
The finance department has issued a order to all the government bodies for doing general banking with the Ajmer, Banswara, Barmer, Baran, Bhilwara, Bikaner, Bundi, Chittorgarh, Churu, Dausa, Dungarpur, Hanumangarh, Jaipur, Jhalawar, Jhunjhunu, Jodhpur, Kota, Sawai Madhopur, Sikar, Sirohi, Sriganganagar, Tonk and Udaipur DCCB”.
“By aligning with the Central Government’s efforts to strengthen the cooperative movement, the state government aims to enhance the efficiency of government transactions and contribute to the overall economic development of Rajasthan. This initiative has the potential to foster financial inclusion and support the growth of the cooperative banking sector in the state”, one of the cooperators quipped.