A piece on Indian Cooperative on the pettiness of Nabard in celebrating its foundation day has invited criticism in the true spirit of democracy. Many people believe that Nabard has done well for the cooperative banks and it does not deserve the uncharitable comments.
The editorial of Indian Cooperative would, however like to clarify that the scope of the piece was not an attempt to analyze Nabard in totality. It pertained to the issue of non-invitation to cooperative banks on the occasion.
However, Managing Director of NAFSCOB contests the view-points that Nabard has done enough for the cooperative banks. The views are his and not that of Indian Cooperative.
It is essential that each one of us has to be very attentive towards the concluding remarks of Governor, RBI on the 30th Foundation of NABARD on 12 July 2012 in Mumbai.
“What NABARD does and how well it does will be a very crucial factor in our agricultural sector’s performance.”
Let me add that ……..will be a crucial factor in the survival of rural cooperative credit & banking institutions which have great potential to ensure smooth flow of agricultural credit .But we should also analyze what NABARD did for them during last 30 years.
All of us believe what NABARD did for cooperatives during last 30 years. (Mostly good as per the few CCIs)
1.Allowed cooperatives to accumulate losses and then recapitalize from the amount received from GOI. 2.Allowed them to be unhealthy for a very long time
3. Made them to continue to lay heavy reliance on refinance and heavy dependence on NABARD
It performed the roles of 1.Promotional 2.Developmental 3.Refinance 4.Supervisory 5.Regulatory 6.Monitoring etc of which roles with S No 4 & 5 -very effectively.
How far is it true! Let us soul-search.
NABARD in all fairness, we should acknowledge, attempted to do during last 30 years, as follows:
Towards HRD,C-PEC, Computerisation in CCIs, Common Accounting System for DCCBs & PACs, ODI for cooperative Banks, Formulation of DAPs, Preparation of standard Audit Manual for PACs, Utilization of CDF etc.
The share of cooperatives in agriculture credit because of these efforts of NABARD for last 30 years is what it was prior to 1982.
Ideally it should help cooperatives become Self Reliant without forcing them to continue to heavily depend on NABARD for everything.
We on our part should hold consultations among ourselves and other relevant organizations to identify the areas that are critical and help NABARD to perform, with a view to ensure agricultural credit’s performance by taking cooperatives into confidence.
Dr.D.Subba Rao,Governor, Reserve Bank of India said “I am delighted to be a part of NABARD’s celebrations of its completion of thirty years. This is a special occasion for NABARD, of course; but also a special occasion for the Reserve Bank, for NABARD was incubated in the Reserve Bank before it rolled out as an independent development financial institution in 1982.The bondage between our two institutions has not only remained strong but is getting stronger. We share a common goal – of furthering……………………”
What about bondage between them and rural cooperatives? Let us initiate appropriate preventive steps so as to ensure that the above stronger bondage between RBI and NABARD does not drastically and adversely affect the functioning of Rural cooperative credit delivery system.
Further, please continue to work to impress upon both of them to build stronger bondage with Rural cooperatives, so as to ensure smooth flow of agricultural credit. Otherwise it is impossible for both of them to fulfill their joint responsibility, without strong cooperatives, for the flow of agricultural credit.
CBS has been launched on the Foundation Da but there was no cooperatives around.
We should reinforce message to all that “Cooperative Enterprises Build A Better world” and a force to reckon with. Otherwise ,it will be miserable for rural cooperatives in the days to come.