Farmers Movement Archive

Reconsider amendment in Banking Regulation Act: Gehlot to PM Modi

Jaipur: Chief minister Ashok Gehlot has strongly objected to the amendment made in the Banking Regulation Act on September 16, 2020, giving the control of cooperative societies to the Reserve Bank of India (RBI). In a letter to Prime Minister Narendra Modi, Gehlot stated that the move has made Rajasthan Co-operative Societies Act 2001 which is responsible for managing and monitoring co-operatives irrelevant. “The amendment will cease to have control of the state on co-operatives. It will adversely affect the basic spirit of the cooperative banks and the cooperative movement in the states. I requested the PM to reconsider the said amendment and restore the earlier system,” reads the letter, which is in possession of the TOI, sent to the PM on October 19. The state has close to 35,000 cooperative societies in the field of agriculture, milk, consumer wholesale, land etc. The move, however, is only applicable for the 30 cooperative societies, including Urban Cooperative Bank (35), Kendriya Sahkari Bank (29) and Apex Bank (1) which are dealing in the banking services. The amendment was passed in the Parliament on September 16 in the midst of the farm bills controversy. A government official said these 29 Kendriya Sahkari Banks have over 4,000 Gram Sewa Sehkari Samiti (GSS) which are known as ‘Mini Banks’ in the rural areas are affiliated with it. In turn, every GSS has 300-400 farmers as its members or stakeholders. “In the earlier system, the administration and management of these cooperative societies is running as per the Rajasthan Co-operative Societies Act 2001 and following RBI rules. The change is the amendment has made both the functions—administration and rules rest with the overburdened RBI,” said the officer. Raising another concern, Gehlot in his statement said it has been made compulsory for 51% members of the board of directors of cooperative banks to have professional experience. This condition is not practical, he wrote.

The Times of India

2020-10-21

Jaipur