The Hindu : Karnataka News : ‘Vaidyanathan panel report not useful to Dakshina Kannada, Udupi districts’

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Karnataka

Karnataka

‘Vaidyanathan panel report not useful to Dakshina Kannada, Udupi districts’

Staff Correspondent

PACCS oppose recommendation to drop ‘bank’ tag
Only eight societies are under losses

MANGALORE: A meeting of co-operative institutions from the erstwhile undivided Dakshina Kannada district here on Thursday approved the implementation of Vaidyanathan Committee report subject to certain conditions here on Thursday.

The committee in its report has dealt with cooperative credit system and ways and means to rejuvenate cooperative societies in India. This followed more than two hours of deliberations at a meeting organised by the South Canara Central District Cooperative Bank on implications of the report on the cooperative sector. Announcing the consensus decision at the end of the meet, president of Karnataka State Apex Cooperative Bank M.N. Rajendra Kumar said the report was not useful to Dakshina Kannada and Udupi districts as cooperative sector was already stable and vibrant here. They did not need the financial bail out package suggested in the report. Only eight of 175 primary agriculture credit cooperative societies (PACCS) in the district were under loss and the SCDCC Bank and other cooperative institutions were in a position to bail them out.

The meeting opposed committee’s recommendations that PACCS should drop the “bank” nomenclature from their title. Such a move, speakers said, would affect their business credibility. General Manager of Bajpe Vyavasaya Seva Sahakari Bank Rathnakar Shetty said his institution’s deposits had grown because of the bank tag attached to it.

Director of SCDCC Bank T. Rajaram Bhat said the committee in its preamble wanted the societies to compete on par with nationalised banks and adopt non-performing assets norms applicable to them. The then Cooperation Minister S.S. Patil had given these societies the status of banks, broad basing their activities.

Chandrahas of Korangarapady Cooperative Agriculture Bank, presidents of Dakshina Kannada and Udupi District Cooperative Unions P. B. Diwakar Rai and P. Kishan Hegde and others who spoke were critical of a recommendation prescribing qualifications for the members of the boards of these societies and termed it undemocratic.

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