The Hindu : Andhra Pradesh News : Urgent State aid sought for cooperative banks

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Sunday, Jul 08, 2007
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Andhra Pradesh

Andhra Pradesh

Urgent State aid sought for cooperative banks

‘Co-ops not taking care of poor’

Proposed bank should help SHGs too
Nabard should liberalise norms

HYDERABAD: The AP Cooperative Banks’ Association has demanded urgent Government financial assistance to 11 of the 22 district cooperative central banks (DCCB) facing disqualification under section 11 of the Banking Regulation Act.

It should be extended as recommended by the Vaidyanathan Committee, P.V. Brahmam, Director, told a press conference on the sidelines of the 85th International Cooperative Day organised by the association here on Saturday.

He said since most DCCBs were facing dearth of funds, Government should encourage them by investing its surplus funds.

They should be permitted to recruit qualified staff immediately, as there were a number of vacancies. Or they should be allowed to recruit on contract basis.

Free flow

Mr. Brahmam suggested that National Bank for Agriculture and Rural Development (NABARD) liberalise norms for free flow of funds to meet farmers’ needs. It should provide 100 per cent concessional finance to get reimbursement from DCCBs/APCOB.

Earlier, speakers at a seminar organised on ‘Micro finance and the role played by the village cooperative societies’, suggested setting of a State-level bank for weaker sections, with mandal-level branches, for providing assistance to them.

The bank was necessary as the primary agricultural cooperative societies were not taking care of their financial needs and the poor were forced to borrow from private lenders.

Speakers said the proposed bank should finance all self-help/Dwacra groups.

They included V. Prabhakar, Joint Registrar, Cooperative Societies, B.K. Swamy, general manager, APCOB, M. Anjaneyulu, president, AP Urban Banks’ Federation, T.S. Prasad, president, Khammam DCCB, V. Hanumanth Rao, Citizens Cooperative Society and others. Ramachandra Reddy, veteran cooperator, S. Prasada Rao, former Joint Commissioner, Labour.

Pothukuchi Sambasiva Rao, veteran writer, chaired a ‘kavi sammelan’ on the occasion. Participants were given cash prizes.

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