RBI disparity issue with cooperative banks being addressed: cooperation with MoS

The issue of the Reserve Bank of India which does not treat cooperative banks the same as private lenders in certain cases, such as granting interest subsidies on education loans, is being discussed. resolution, Union Minister of State for Cooperation BL Verma said on Monday. Addressing an event organized by the National Union of Cooperatives of India (NCUI), Verma stressed the need to address the issues faced by cooperatives to further stimulate this sector.

“The president of the NCUI brought up the problem encountered due to the RBI’s different approach to cooperative banks… these issues were discussed occasionally with the head of the RBI and the Minister of Finance. a positive discussion and the decision is underway. This decision will be in our favor, “said Verma.

Union Cooperation Minister Amit Shah met with the head of the RBI and the Minister of Finance. “Not only related to the education loan, but other issues such as income tax which were obstacles for cooperatives were discussed positively,” he explained, addressing PTI after the event.

“Why are cooperatives treated differently from the private sector? This question was reserved for them,” he added.

Verma said a new cooperation ministry has been created, realizing its role in nation building. Cooperatives can manage not only small businesses, but also large ones.

There is a need to upgrade cooperative banks with technology to provide 365 days banking services. There is also a need to speed up the computer training of the workforce in the cooperatives to make it work professionally, he said.

A ministry of cooperatives has been established with the aim of expanding the cooperative movement in the country from the current level of around 8.60 lakh cooperatives with more than 30 crore of members, he added.

Verma also unveiled NCUI’s monthly “Cooperator” magazine at the launch of the 68th Indian Cooperative Week.

The issue of the RBI’s disparity towards cooperative banks was raised by NCUI President Dileep Singhani in his speech at the event, while listing the obstacles faced by the industry.

“RBI takes a different approach towards cooperative banks compared to private banks. A student will not get a grant on the study loan for study abroad from a cooperative bank unlike the private sector. Is it right ? ” he said.

Singhani said there is a “disparity” towards cooperatives and hoped this will change with the establishment of a new ministry.

He said that there is not a single village in India where the cooperatives do not work. The country’s growth is possible thanks to the cooperatives, but obstacles like the question of income tax are on the way.

Cooperation began in India during British times in 1904. It developed after the country’s independence with IFFCO, Anand Milk Union Ltd (AMUL) among others, he added.

Singhani hoped that a new cooperation policy that is on the anvil will inspire confidence among the population about the role of the cooperative in the country’s growth and open new avenues for young people.

NCUI chief executive Sudhir Mahajan said the cooperation union has taken steps to strengthen the cooperatives affected during the COVID-19 pandemic.

About 41 field projects have been implemented to empower small aid groups, a skills development center is being built in Noida to train young people and even NCUI Haat at NCUI Delhi campus has received a welcome over the past three months, he said.

That aside, the NCUI has signed four memoranda of understanding for skills development and motivation training, among others, in addition to partnering with Zeroda’s Rainmatter Foundation.

The NCUI has set a goal of creating 50 model villages over the next five years and aims to create the NCUI Haat in 20 states in the future, he added.


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