Credit co-ops be allowed to construct godowns: Chandak

While giving the welcome speech on the occasion of National Conference on Credit Cooperatives at New Delhi, the largest multi-state credit co-op- Buldana Urban Chairman Radheshyam Chandak raised several issues pertaining to credit co-ops. But most of all he wanted the govt to allow credit co-ops to construct godowns.

“The food grains, mainly rice and wheat, get damaged worth of Rs 1.12 lakh crore on yearly basis due to shortage of godowns and if permission for constructing warehouses is given to credit co-ops, not only half the money could be saved but also spoilage”, said Chandak whose cooperative played an important role in making the event a grand success.

On this occasion, Chandak also raised many issues plaguing credit cooperatives. “The credit co-operative sector is facing many problems in running their business. There are issues related to Income Tax, expansion of branch network, allowing credit co-op to recover loans under the SARFAESI Act, Platform to know CIBIL score of borrowers and others”, the Buldana Urban Chairman added.

He further said, as we keep on receiving the news of the falling down of credit cooperatives, it is necessary to create a body for protecting the money of depositors on the lines of DICGC. Mainly poor and downtrodden people park their money in Patsansthas and in their interest the step should be taken.