BR Act: NAFSCOB constitutes Standing Advisory Committee on STCCS

STCCS will work as a ‘think-tank’ to deliberate on the issues which are likely to affect the functioning and performance of STCCS and will advise suitable interventions accordingly

Karimnagar: In the wake of Reserve Bank of India (RBI) announcing the implementation of Banking Regulation Act-2020 from April 1, the National Federation of State Cooperative Banks (NAFSCOB) has constituted a Standing Advisory Committee on Short Term Cooperative Credit Structure (STCCS). STCCS will work as a ‘think-tank’ to deliberate on the issues which are likely to affect the functioning and performance of STCCS and will advise suitable interventions accordingly.

The Standing Advisory Committee is headed by NAFSCOB president Konduru Ravinder Rao as its chairman, Belli Prakash, MLA, President Karnataka State Cooperative Apex Bank Limited as member, Bhima Subrahmanyam, managing director, NAFSCOB, member, Dr R Bhaskaran, CEO (retired) IIBF, member, Sudhir Mahajan, Chief Executive, National Cooperative Union of India (NCUI), member, Rajiv C Padia CEO (retired), Gujarat SCB, member, WK Kyndiah, Chairman, Meghalaya Cooperative Apex Bank Limited, member.

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The permanent members include; Dileep Singhani, former MP and former president of NAFSCOB and NCUI, Chandrapal Singh, ex-MP and president KRIBHCO, Sunil Kumar Singh, MLC and vice president of NAFED and N Muralidhar, TSCAB managing director as special invitee and P Mohanaiah, CGM (retired) NABARD as member secretary. The committee will meet at least once in a quarter.

Accordingly, the first such virtual meeting of the Standing Advisory committee was conducted under the chairmanship of NAFSCOB chairman Konduru Ravinder Rao from TSCAB office in Hyderabad on Saturday. Speaking on the occasion, Ravinder Rao said that though the BR (amended) Act came into force from April 1, 2021, the Regional Cooperative Banks (RCBs) have not received any directions or guidelines either from the RBI or NABARD.

“There is a lot of confusion, lack of clarity and understanding on the provisions pertaining to the amendments in the State Cooperative Banks (SCBs) and District Cooperative Central Banks (DCCBs) across the country”, he stated. In certain cases, there is also conflict between the provisions of the State cooperative societies Act and the BR Act, he complained.

He said that the clarifications were required from the RBI in the issues pertaining to the Issue and Regulation of Paid up share capital and securities by cooperatives (section 12), professional qualifications of directors (section 10A), concept of full time chairman and part-time chairman (section 10B) and opening of branches by the DCCBs (section 23).

He informed the members of SAC to give concrete suggestions for effective functioning of Regional Cooperative banks (RCB) in the wake of implementation of BR Act. He said that they would request the RBI through NABARD for clarifications for the operational problems and request the RBI for exemption of certain provisions as per section 53A of the BR Act.

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