In an hour-long discussion with the union Finance Minister, Sahakar Bharti raised several issues confronting the cooperative sector. Later it submitted a memorandum which touches upon almost all the sectors of cooperative business. While the Minister assured of quick action on some, she sought a month’s time for others.
The Wish List is reproduced verbatim
1. Rural Credit Delivery System – Primary Agricultural CoOpSocs (PACs), Dist Central CoOp Banks (DCCBs) and State CoOp Banks (StCBs) and Agriculture and Rural Development Banks (ARDBs) –
a. In the last few years, income in rural areas come from diversified sources. The quantum of agricultural income now stands reduced to 35%. The balance 65% income comes from a variety of non-farm activities like Transport, Warehousing, Retail Trade, etc. (Source : NITI Aayog).
b. Keeping in view this change and also of opening up of market for Agriculture Produce, new Business Models need to be evolved for DCCBs and StCBs to make them relevant and profitable.
Untapped huge Financial Resources in the Rural Sector need to be channelized by providing Deposit Insurance Cover upto Rs 50,000/- for Deposits mobilised by PACs as recommended by Khusro Committee.
c. Allow PACs also to set up Agro Processing Units and extend Financial Assistance as is being provided to (Farmer Producer Organization(FPOs) and Farmer Producer CoOps (FPCs)
d. Release Rehab Package for SCARDBs and PCARDBs
e. Initiate process to confer Scheduled Status to all eligible DCCBs & StCBs
2. Dairy CoOp Societies
a. Liquid Milk/Milk Powder be made a component of National Food Security Programme
b. To make available Cattlefeed at affordable rates, encourage District/State Level Milk Unions/Federations to set up Cattlefeed Mfg Units
3. Fisheries CoOps
a. Encourage Fisheries’ CoOps along the vast Indian Coastline
b. Encourage Fish Processing Units to meet demands of Domestic and Foreign Markets
c. Provide Insurance Cover for Fishing Nets
4. Weavers’ CoOp Societies and CoOp Mills
a. Provide Liberal Financing Schemes for Upgradation of Machineries and Equipments of Weavers’ CoOps
b. Announce Financial Package, including Tax Holiday for 3 years, for Spinning/WeavingCoOp Mills
5. Urban CoOp Banks
a. Initiate process to Licence new Urban CoOp Banks and start release of Licenses for opening new branches, installing Offsite ATMs, Net Banking, extending Area of Operation to CoOp Banks, particularly to all UCBs
b. Empower Financial Sound and Well Managed (FSWM) Banks to open Sukanya Deposit Accounts, Tax Saving Five Years Term Deposit Accounts, etc.
c. Cover all CoOp Institutions (UCBs, DCCBs and StCBs) under Credit Guarantee Schemes
d. To recognize all UCBs as Money Lending Institutions (MLI) for disbursement of Mudra Loans
e. Initiate process to confer Scheduled Status to all eligible Urban CoOp Banks
f. After the recent amendments to Banking Regulation Act, 1949, RBI has now been vested with full powers to regulate Urban CoOp Banks. Hence, it is now not necessary for RBI to insist on formation of Board of Management by Urban CoOp Banks. GOI may advise RBI to review its guidelines in this regard.
6. Credit CoOp Socs
a. Limit prescribed for Cash Transactions for individuals should not be applied to Credit CoOps
b. Encourage large Credit CoOps to convert themselves into UCBs
c. Interest earned on Investments from any Bank should be exempt under Section 80P
d. The Cash Transaction Limits stipulated needs to be relaxed and necessary modifications be effected to Sec 269SS and Sec 269ST
7. Housing Co-ops
a. Interest Subsidy be allowed to borrowers availing Housing Loan from all CoOp Financial Institutions (UCBs, DCCBs, StCBs)
b. For registration under GST, increase Annual Turnover Limit from Rs 20 Lakhs to Rs 75 Lakhs
8. Consumer CoOps
a. Income Tax to be levied on Primary Consumer CoOps whose Annual Turnover exceeds Rs 2 Crores
9. Training
a. Income Tax should not be levied on CoOp Training Socs
b. Grants for Capital Expenditure be provided to CoOp Training Socs
10. Raising of Capital by CoOps
a. To obviate the need for Central and State Govts to contribute Capital to the CoOps, a new platform be created for all CoOps on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) to raise Funds by issue of Bonds and Equity by Public Issue/Private Placement Basis.
This platform should also be enabled for trading of these Instruments on BSE/NSE.
b. CoOps need to raise Long Term Funds including Capital for their Expansion, Modernisation, and Diversification and for Augmenting their Working Capital requirements.
c. Needless to say, CoOps should follow all guidelines that SEBI may stipulate before raising the Capital.
11. Inclusion of CoOps in Payment Gateway through National Payment Corporation of India (NPCI)
a. To deepen Digitalisation in Rural areas and amongst Lower Income Strata of the Society, formulate norms for providing payment gateway to Credit CoOps, Dairy CoOps and PACs which are engaged in Thrift and Credit activities.
b. This facility may be provided through NPCI or any such Organization.
12. Extending Ease of Doing Business Norms to CoOps
a. As CoOps are Economic Institutions, apply Ease of Doing Business Norms to CoOps.