In a significant push to strengthen the social impact of the cooperative sector, Vidyadhar Anaskar, Chairman of the Administrative Board of the Maharashtra State Cooperative Bank, has written to Union Minister of State for Cooperation, Murlidhar Mohol, urging the government to introduce a formal framework for Co-operative Social Responsibility (CSR).
In his letter, Anaskar highlighted the longstanding contribution of cooperative institutions and cooperative banks in supporting rural and semi-urban economies. He emphasized that these institutions have played a crucial role in providing financial services to farmers, small entrepreneurs, self-help groups, and economically weaker sections.
Drawing parallels with Corporate Social Responsibility (CSR) followed by large companies, Anaskar pointed out that while corporates are mandated to allocate a portion of their profits for social development, cooperative institutions remain outside such a structured framework. He argued that introducing a similar CSR mechanism for cooperatives could significantly enhance their role in nation-building.
Anaskar also referred to provisions under the Maharashtra Cooperative Societies Act, which allow cooperative institutions to allocate up to 20% of their net profits for public welfare.
However, he noted a key limitation: as per current Reserve Bank of India (RBI) guidelines, cooperative banks are restricted to donating only up to 1% of their previous year’s net profit. This, he said, creates a mismatch between the intent of cooperative laws and regulatory restrictions, limiting the sector’s ability to contribute meaningfully to social causes.
The letter stressed that with a structured CSR framework, cooperative institutions could undertake impactful initiatives in areas such as financial literacy, rural infrastructure, education, healthcare, women empowerment, and environmental sustainability. Such efforts would not only benefit communities but also enhance the credibility and public image of the cooperative sector.
Anaskar has urged the Ministry of Cooperation to take a policy decision on this matter and requested that the RBI be advised to formulate suitable guidelines enabling cooperative banks to actively participate in CSR activities.
The proposal comes at a time when the government is focusing on revitalizing the cooperative movement, and it is believed that integrating CSR into the sector could unlock a new avenue for inclusive and grassroots-driven development