English_Master March 20, 2016 No Comments
COOPERATIVE BANKS — RESTORING THEIR PAST GLORY CO-OPERATIVE BANKS, the banks for people of small means in India, which had a glorious past, are today at the cross-roads to reassess their own strengths and weaknesses and decide on their future role in the reforms era. The agri­cultural economy largely depends on the financial strength of co-operative banks. The flow of credit to the masses, the measures needed to reduce urban and rural poverty, the issue of Kisan credit cards and finance for self help groups, will decide the emergence of co-operative banks as “peoples’ organizations”. Free flow of credit to the disadvantaged sections such as small farmers, marginal farmers, sub-marginal farmers, ten­ant farmers, lessees and landless workers must be ensured by the rural co-operative credit system. Resource constraint is the biggest challenge here. The stranglehold of powerful boards of directors on the urban co-operative banks and mal­practices in sanctioning loans and advances are major prob­lems for these institutions. Over 100 years old Co-operative banks in India, which include co-operative credit institutions, are more than 100 years old. Even prior to the Banking Regulation Act 1949, a Central legislation to control and monitor besides regulating the co-operative credit societies came about in 1904, in as much as co-operative banks were...
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