NCUI President Chandra Pal Singh Yadav has written to the Union Agriculture Minister Radha Mohan Singh objecting to a proposed bill that stipulates banning of unregulated deposit schemes in the country.
Readers would recall that the proposed bill calls 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 a brief missive sent to the union minister, Yadav reminds Singh that being the apex body of the cooperative movement in the country it is the duty of NCUI to bring to his notice the pernicious effects of the proposed bill.
“People come forward as a group, pool their resources, utilize them in the best possible manner and derive some common economic benefits out of it. If deposits are not allowed the work of cooperatives would come to a standstill. Banning these societies would put the very concept of formation of thrift and credit societies in jeopardy”, he writes.
Chandra Pal also reminds the Minister of the spirit of the 97th amendment. In India forming cooperative is a fundamental right. Cooperatives are member owned organizations where members are pooling their resources and satisfying the credit needs of their fellow members of the society. Therefore banning deposits is against the spirit of 97th CAA, Yadav adds.
Diagnosing the issue Yadav said instead of a blanket ban on deposits there is a need to find out defaulters and punish them.
Chandra Pal also exposes the contradictory bill where the state may allow deposits by cooperatives but those registered under the Multi State Co-op Act cannot accept deposits.
The NCUI Governing Council meeting in April has resolved to take a delegation of cooperators to the Finance Minister objecting to several provisions of the proposed Bill. But the delegation could not go as members had other preoccupations.