Satish Marathe, the patron of Sahakar Bharati and a senior cooperator of the country has written to the Finance Ministry seeking more time for formulating a response to the proposed bill for banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill (Banning Bill).
An Inter-Ministerial Group (IMG) has finalized a report according to which multi state co-operative and credit societies cannot accept deposits. It is being hailed as the final nail in the coffin of credit cooperatives.
In his letter Marathe writes “It has come to our notice only a few days back that an Inter-Ministerial Group (IMG) has finalised its Report and recommended a number of Legislative and Non Legislative Measures including legislation of a comprehensive Central law called the “Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill” (Banning Bill). The comments on the above are to be submitted on or before 30th April, 2016.”
In this regard, we have immediately constituted a team of cooperators to study the recommendations and their likely impact on the Credit cooperative societies. As the changes proposed are of far reaching nature, we would need at least minimum 15 days to prepare our detailed response and submit the same to you. Hence, we request you to give us time, Marathe says.
“While we appreciate the steps being considered to protect public money, some of the steps proposed are draconian and perhaps even impractical, particularly, from the standpoint of credit coops. Moreover, there is also an urgent need for public debate on the subject” he underlines.