Cooperative Sector Strength: A Call for Efficiency and Unity

Home Minister Amit Shah emphasized the importance of cooperation, welfare, and profit equity for the cooperative sector during NAFSCOB's jubilee celebration. He advocated for computerizing PACS for administrative efficiency, linking them with cooperative banks and NABARD to fortify grassroots financial structures, ensuring robust agricultural lending and development.

During the diamond jubilee celebration of the National Federation of State Co-operative Banks Ltd (NAFSCOB), Home Minister Amit Shah highlighted the necessity of cooperation, welfare, and equitable profit distribution as foundational principles for the cooperative sector. He warned that without these elements, achieving the sector's goals would be challenging.

Shah underscored the critical role of Primary Agricultural Credit Societies (PACS) in the cooperative banking system. He insisted on the importance of computerizing PACS for them to function effectively, stating that state and district cooperative banks rely on PACS as their backbone. The government has facilitated this transition by enabling software in multiple languages to aid efficiency.

He pointed out that PACS now operate in conjunction with district and state cooperative banks, as well as the National Bank for Agriculture and Rural Development (NABARD). Acting as grassroots agents, PACS directly engage with rural borrowers, manage loans, repayments, and provide crucial support in marketing and distribution, thus forming an integral part of the cooperative credit loop.

The cooperative credit structure relies on PACS as a pivotal anchor, connecting borrowers to larger financial entities like Scheduled Commercial Banks and the Reserve Bank of India (RBI). Shah expressed concern over the dilution of cooperative values in some PACS and cooperative banks and called for a rejuvenation of the cooperative spirit to address local and state-level issues effectively.

NAFSCOB, founded in 1964 to support state and central cooperative banks, plays a crucial role in facilitating cooperative credit development. Shah reiterated the importance of transparency within the cooperative sector, identifying it as an essential aspect of maintaining trust and efficiency in operations. (ANI)

(With inputs from agencies.)