The cooperative banks play a big role in the Indian economy as they are based on the small amount of money collected from the ordinary people. They tend to cater to the poor.
Moreover, the cooperative banks help those who cannot avail themselves of the services provided by the nationalized banks, said Manmohan Goyal Chairman of the Vaish Cooperative Commercial Bank while talking to the Indiancooperative.com correspondent here today in Delhi.
The govt of India should give tax concessions to the cooperative banks as the excessive tax burdens imposed on them reduce their deposits as well as profits. Besides, the cooperative banks could not issue Demand Draft and multi-state cheques. All this detracts from their ability to increase their customers and deposits, Mr Goyal added.
Mr Goyal urged the RBI to bring in such policies as may enable the cooperative banks to provide even the poor people with necessary funds.
Chairman of Vaish Bank Mr Goyal claimed that his bank offers unsecured loan to the tune of 50 thousand and secured loan to the tune of 35 lakh. The Vaish Cooperative bank gives loan only to those of the members who have invested some share money.
Established in 1939, the bank was trifurcated. Presently, the bank is known as the Vaish Cooperative bank. The bank has only one branch but it is planning to open new branches. It has 6 thousand members and share-holders. Its annual turnover works out to Rs 22 crore and it notches up a little less than 3 lakh in profits.
According to Mr Goyal, the RBI has never imposed any penalty on the bank. The bank enjoys good ties with NAFCUB and other cooperative organizations.