NABARD chief asks coop banks to follow TS model

National Federation of State Cooperative Banks (NAFSCOB) chairman Konduru Ravinder Rao, addressing the gathering, said the PACS were pillars of the cooperative movement in the country

Karimnagar: NABARD chairman G R Chintala called upon all the State cooperative banks in the country to emulate the Telangana model in general and the Karimnagar model in particular for the successful functioning and strengthening of Primary Agriculture Cooperative Societies (PACS) in the country.

Chintala was addressing the inaugural session of the two-day national review meeting and national conclave of rural cooperative banks at the Bankers Institute of Rural Development (BIRD) in Lucknow in Uttar Pradesh on Thursday.

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National Federation of State Cooperative Banks (NAFSCOB) chairman Konduru Ravinder Rao, addressing the gathering, said the PACS were pillars of the cooperative movement in the country. NAFSCOB with the support of NABARD was playing a major role in strengthening the PACS and making them more vibrant to improve rural economy, he said.

Citing the successful functioning of PACS in Telangana State, Ravinder Rao said the State government utilised the PACS in procurement of farm produce from the doorsteps of farmers during the pandemic situation. The PACS also helped in payment at their doorsteps, he added.

He also welcomed the Banking Regulation (Amendment) Act, which will come into force on April 1 in the country, since it was aimed at good governance and to check leakages and misappropriation of funds.

Ravinder Rao, however, urged the Union government through the Reserve Bank of India (RBI) not to sacrifice the spirit and principles of the cooperative movement which was serving the rural economy for over a century in the country.

The NAFSCOB chairman said the Banking Regulation Act bought cooperative banks under the regulatory framework of the RBI to protect depositors. The union government, he said, should protect the principles of cooperative banks and urged it to relook and set up a committee to recommend adequate measures to preserve the cooperative movement.

Explaining the strong cooperative movement in Germany, he stressed on the need to adopt some of the good practices being followed in that country and incorporate them along with provisions into the banking amendment bill.

All the State cooperative bank chairpersons and managing directors and others participated in the meeting.

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