National cooperative agriculture banks federation (Ncardbf)  has  come out in support of  FDI in the multi-brand retail sector arguing the move would  help farmers get better returns as well as enable them to pay bank loans.

As  the  foreign retailers  would   be in direct contact with farmers  getting  agricultural products from them , there would  be  more money coming  to farmers  and  the role of  the middlemen  would  stand automatically reduced,  said  Ncardbf MD Mr  Ravindran  while talking to the  press  in Chandigarh.

According to Ncardf , when  farmers get  better income  that means  their capacity to pay loans would rise.

Sources say state cooperative agriculture and rural development banks are active in 19 states altogether. The banks have put more than 15 thousand crore rupees in various forms and their NPA counts twenty percent, sources claim.

The meet in Chandigarh called upon the central govt to allow the banks to act as commercial banks. It also asserted that if the RBI permitted the banks to work as such it would go a long way in supplying the deficiency in banking services in the country.

Confusion of election symbols has led to postponement of the elections to the Maharashtar State Cooperative BanK (MSCB) employees union. Shrikant Bhuyarkar who was a candidate from the ruling Sahkar panel and contesting for the post of treasurer had his rival’s election symbol torch against his name.

This angered the opposing Parivartan panel.

The parivartan panel charged that the confusion was deliberate and the opposite panel was not willing to abide by democratic norms. The election should be held every three years as per rules of the union but sahkar panel had been in power for the last several years, parivartan panel complained.

Sources say fresh elections would be held on the 16th September now.

India govt may soon consider giving farmers crop loans at a very low interest through cooperative and other banks. In a scheme that may greatly boost the rural economy, India govt is likely to pay two percent interest subsidy to the banks.

Sources say the govt had earlier announced in the budget that the interest subvention scheme giving short term crop loans to farmers at 7 percent annual interest would cover 2012-13.

Besides, schemes such as additional help of three percent for immediate payment by farmers and post-harvest loans against warehouse receipts would be available.

The exercise is intended to reward farmers for paying their loans in time and for keeping their produce in warehouses.

There is general agreement about the fact that farmers need to be provided with easy and affordable credit so that there is spike in the agriculture credit targeted for the current year.

During more than a decade long stay as Managing Director of U P Coop Bank Ltd.  Sri L.M. Chaube has misused his power at every step, in recruitment, in promotions and looted the institution shamelessly.

By manipulating the legal and original seniority list of A.G.M.s, a forged seniority list was published on 30.11.2011, which denied promotion to the legally right senior A.G.Ms.

He got juniors and his favourites promoted. Ritu Gupta was A.G.M. from 12.08.2007 and many officers were senior to her.

We all affected were very surprised and decided to protest in writing. As this news was whispered by some caucus members to L.M.Chaube, our transfer orders were issued.

Tasaddque Hussain A.G.M. is most important caucus member. Raja Ram Sing is another prime caucus member.

All kind of purchases for bank and for the use of L.M. Chaube’s residence was done by Raja Ram Singh at bank’s expenses.

ATM machines purchased several years back are lying in damaged, corroded and are now defunct. When bank had not to intall ATMs at that time what was the hurry to purchase these costly machines. Now there are many improved models available in the market, at half the cost. In general, to steal a penny L.M. Chaube gave a dent of pund to the bank.

Sub-standard computers and accessories were purchased at a higher cost ignoring the presence of branded items in the market. And at a cost higher than that of branded ones!

District Cooperative Banks of Uttar Pradesh are in very bad shape. Government  released assistance of several crores of rupee through Uttar Pradesh Coop. Bank Ltd. Funds received for the purpose were never utilized for the said purpose, a major portion was siphoned off by L.M. Chaube.

Reserve Bank of India has instructed not to accept funds in the 25 DCBs which were on the verge of closure. Deposit from the public was risky in these cases.

Thousands of employees of these banks have not received their monthly dues from their banks. They are in fear of losing their jobs and L.M. Chaube as Managing Director of Apex Coop. Bank Ltd. is equally responsible.

To appont his son and daughters in the U.P.Coop. Bank ,  L.M.Chaube twisted the selection process and rules in such a manner that only his son and daughters were selected.

To bring his son to the bank he created a post of Public Relation Officer in the cadre of AGM. No bank has any requirement of such post anywhere in this world .Yet Saurab Chaube, his son was appointed as P.R.O.

L.M Chaube retiring in the year 2013,had game plan of amassing as much as wealth as possible and was very successful in his mission also because when he took over as Managing Director a decade back he was simply a millionaire and when recently he was removed from the bank he was a billionaire.

His earnest will was to see Ritu Gupta as General Manager for which he tried tooth and nail to stay back here but this time his luck ditched him.

-One of the victim AGMs

Police has registered a case of forgery in connection with a fraudulent withdrawal of several lakhs of rupees from a cooperative bank in Ballia district of UP.

The cooperative division of UP police is likely to arrest several people accused in the case including a BSP MLA, a former minister’s son and 12 others.

Sources add investigations have revealed that a BSP MLA had been a partner in a tainted construction agency.

Buzz  is  the arrest warrants  issued  by  a Varanasi court  that  handles  the  cooperative   cases  would soon be handed over to the local police and all those involved in the fraudulent transactions would be arrested without delay.

The RBI insists on all the state and central cooperative banks making certain that there is minimal variation in interest rates on single term deposits of Rs 15 lakh and above and other deposits for corresponding maturities as there are presently wide variations noticeable in interest rates on them.

In a notification issued to the banks, the RBI has asked them to have a board approved transparent policy on pricing of liabilities.

The apex bank says the cooperative banks offer vastly different rates on deposits with almost no difference in maturities. Doing things in such a way shows that they lack adequate liquidity management system and pricing methodologies, the RBI indicated.

Banks are permitted to give different rates of interest on fixed deposits according to their own    judgment but they have to give information to the depositors about the plan of interest rates payable  on  deposits.

Rajkot cooperative bank has displayed the true spirit of a cooperative bank by becoming farmer-friendly in real sense of the word.It is trying to check farmers’s suicide in its own way.

Saurashtra region of Gujarat is badly affected by drought and this has prompted the Rajkot district cooperative bank to waive interest on loans given to about two hundred thousand farmers.

The total amount of agricultural loans involved is Rs 1225 crore.

There have been reports of farmers committing suicides in the region.

Sources say farmers who have suffered serious financial losses would be provided with additional loan of Rs 20,000 per acre.

Andhra Pradesh Cooperative Bank would soon emerge as a major source of credit and other facilities to several millions of farmers in the state.

The bank with its wide network of district cooperative central banks and primary agricultural cooperative credit societies would work together with IFC the World Bank’s financial arm to help the local farmers.

In a statement issued recently the bank said it would receive support from the IFC especially in the field of staff training and product designing. The IFC would also   help the bank deliver financial products to the female entrepreneurs, the statement added.

Y V Reddy President of the bank claims the A.P state cooperative bank would play a significant role in the agricultural development of the state with its expanding product and client base.

Working together with the IFC would also enable us to have a better portfolio quality and risk management, he remarked.

President said the bank would develop all kinds of financial products and try to meet the agri-finance needs of farmers. The bank would build its capacity to help the farmers having no access to credit and financial services, he noted.

There are accusations that the nationalized banks are charging interest from farmers on crop loans in Bhandara district in Mahararshtra even if there is an express order from the govt they should not do so.

As opposed to it, the district central cooperative bank is strictly observing the official order and not charging a farthing from the farmers.

Sources say while the cooperative bank is abiding by the govt order the nationalized banks are betraying avarice and ignoring directives from the government.

The nationalized banks are not only charging a big interest on crop loans but also   not easily returning farmers the mortgaged things. This is a flagrant violation of the govt instruction, they add.

Bhandara District Central Cooperative Bank has not charged or recovered a single rupee from farmers. It has yet to get its Rs 6 crore from the government for previous year. Consequently, it is suffering huge losses, sources claim.

Police have arrested three persons including a Western Rly worker on charge of forging papers to take a loan of Rs. 5 lakh from a cooperative bank in Sabarmati.

According to the local police, all the three have confessed to duping the  Ramgarh Branch of Sarvoday Commercial Cooperative Bank into giving them the loan.

The bank got suspicious when it found the papers submitted forged. The bank lost no time in lodging a complaint with the police.

 All the three criminals were taken into custody when they came to the bank to collect their cheque for the car loan.