As earlier disclosed in these columns, Sahakar Bharati top leaders deliberated on a host of issues concerning the cooperative sector with Union Finance Minister Nirmala Sitharaman on virtual platform on Thursday.
Sitharaman was connected virtually from her residence in Delhi. The meeting was held in the second half which lasted 45 minutes.
Sahakar Bharati President Ramesh Vaidya, National General Secretary Uday Joshi, Patron Jyotindra Mehta, National Organizing Secretary Sanjay Pachpor and one of the founder members Satish Marathe were present during the virtual meeting.
As soon as the meeting was over, talking to Indian Cooperative Joshi said, “We raised several issues pertaining to the cooperative sector before the minister and especially allowing Cooperative Banks to lend under Emergency Credit Line Guarantee Scheme (ELCGS). She showed a very positive attitude towards our list of demands and was eager to resolve them”.
“Though she has not given any deadline for resolving the issues, we hope that the finance Minister will take our concerns very seriously. Besides, she listened to our concerns very patiently”, Joshi informed this correspondent on the phone.
Sharing the list of demands tabled before the minister Joshi said, “The Stimulus Package provides financial assistance of Rs 3 lakh crore for the MSME Sector. However, the entire Co-operative Financial Sector has been kept outside the purview of CGTMSE and GECL Schemes. We requested that all UCBs, DCCBs and SCBs be included under the above Schemes”.
On the occasion, we apprised the minister that the co-ops do not find support and are not included whenever Financial Schemes/Packages are announced by the Finance Ministry. This has been happening mainly because necessary inputs are not being provided by the Dept of Financial Services in the Ministry of Finance. We, therefore, once again urge the minister to create a Section, in the Dept of Financial Services to look after Co-operative Financial Institutions”, he added.
Another point raised before the minister includes the Credit co-op continues to be exploited by Income Tax Officers, particularly on account of Section 80P(4). Sahakar Bharati urged the CBDT to intervene and issue fresh guidelines. Besides, with a view to promoting digital financial transactions, particularly, in Rural areas NPCI should formulate norms and give membership to different primary level co-ops.
The Sahakar Bharati delegation has also informed the minister that, RBI has directed to set up BOM for UCBs with deposits of over Rs 100 Crore. After the Ordinance dated 27th June 2020 amending of BR Act 1949, UCBs now come under full regulation of RBI. Hence, RBI should reconsider the introduction of BOM as it will disturb harmony in the Management of UCBs.
“Bullet payment for Gold Loan by UCBs is restricted upto Rs 2 lakhs. However, all Banks have got freedom to decide their own limits. As the gold prices have increased, it is now necessary to increase this limit to at least Rs 25 Lakhs”, they demanded.