Bihar Dy CM attempts reviving Cooperative Banks

Bihar Dy CM attempts reviving Cooperative Banks

Posted on 12 July 2011 by Akshay Kumar

Of the total of 22 cooperative banks in the state of Bihar only two are functioning. Taking note of the matter seriously Deputy CM Sushil Modi called a meeting of Chairman of defunct banks as well as RBI officials to thrash out a solution.

RBI has given license to conduct banking activities to just two of the 22 cooperative banks operating in the state and, therefore, the banking activities of the remaining 20 cooperative banks are nil.

Applications of 12 other cooperative banks seeking to do banking activities were under review at RBI. If the 12 cooperative banks fulfilled the criteria required, then they would be issued license.

Performance of seven of the 20 remaining cooperative banks was unsatisfactory and, therefore, they may not be issued license to conduct banking activities in the state. According to the RBI representative, the demand for license by the cooperative bank operating at Siwan was under process. Modi also expressed unhappiness over the failure of the cooperative banks to provide enough number of Kisan Credit Cards (KCCs) to farmers.

Banks have provided KCCs to only 42,571 farmers during the 2010-11 financial year against a revised target of 1.60 lakh.

Modi, in the situation, told the chairmen of the 22 cooperative banks present at the review meeting to activate their respective cooperative banks to extend agriculture loan to farmers. He also told them to meet the target fixed regarding the issuance of KCCs to them in the current financial year for the benefit of farmers.

Modi told them to appoint chief executive officers to streamline the activities of the cooperative banks in tune with the recommendations of the Baidyanathan Commission.

Source: indiancooperative.com

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