RBI excludes Co-op from committee

RBI has formed the Nachiket Mor Committee on comprehensive financial services for small businesses and low income households but the cooperative sector has not been taken on board.

As the cooperative sector has always been in the forefront disseminating banking services across the country, its exclusion from the committee amounts to showing no respect and appreciation for the good work the cooperative sector has done, aver analysts.

Cooperative sources charge the committee bulges with representatives from corporate and private banks. The short term credit system in the country is substantially handled by the cooperative sector and therefore it richly deserved representation on the committee, said the sources acerbically.

It is worth mentioning that the Rangarajan committee on financial inclusion had suggested the cooperative sector could play a pivotal role in financial inclusion in the country.

The latest snub only compounds the discomfiture Nabard’s recent diktat on PACS had already caused the cooperative sector.

Some prominent cooperators in return for their names not being mentioned said Mr Bakshi an important member of the Nichiket Mor committee bears a disposition to harm the cooperative sector. He would contribute in formulating recommendations that are premised on marginalizing the cooperative sector in financial inclusion, they asserted.

 

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