NCUI, the apex body of cooperatives in the country is organizing a workshop in collaboration with NAFSCOB to deliberate on the pernicious effect of NABARD Circular which talks of reducing PACs to the status of business agents.
The National Workshop on “Expert Committee on STCCS – Its reports and implications/impacts on PACS” would take place on Friday in the NCUI Committee Room.
National Federation of State Cooperative Banks (NAFSCOB) is the spokesman of short-term cooperative credit institutions in the country. NCUI and NAFSCOB have actively lobbied on various issues of cooperative credit time and again, which has led to definite impact on government policies.
The workshop will be attended by the key representatives of NABARD, Government of India, RBI and the national level cooperative federations, DCBS and PACS.
In the recent years, the importance of Short-Term Cooperative Credit has assumed huge significance for strengthening of the Indian Cooperative sector. An Expert Committee under the Chairmanship of Dr. Prakash Bakshi, Chairman, NABARD was constituted by RBI to examine the three tier short-term cooperative credit structure (STCCS).
The Committee came up with far-reaching recommendations, in order to professionalize the working of this sector. As a result NABARD has recently issued directive to SCBs and DCCBs, which has led to serious concern in the cooperative sector.
Transfer of assets and liabilities of PACS to DCCBS/SCBs, PACS not accepting deposits on its account, PACS to function as Business Correspondent of Central Cooperative Banks/State Cooperative Banks, etc. are the key features of this directive.
It is widely felt that this will result in loss of business of PACS, but will also have serious implications on their autonomy and independent character.
PACS are the primary unit of the cooperative sector. It has been generally believed that being the weakest link in the cooperative sector, they need to be strengthened so that the cooperatives succeed in India.