Delivering the 21st Vaikunthbhai Mehta Memorial Lecture virtually, Nabard Chairman Givind Rajulu Chintala said a fully technology enabled cooperative banking eco-system and transition of half of India’s PACs into multi-service societies would act as a game changer that would revitalize cooperative credit institutions in a big way in the country.
Chintala said cooperatives in rural areas need to be revitalized at the earliest as the collapse of the cooperative credit system will affect credit availability in rural areas. Chintala said technology will be the biggest single disruptor and connector, and this will make cooperative banks more competitive, transparent, accountable and performance driven.
He said NABARD has initiated to have 100% CBS adoption by cooperative banks with 90% branches on CBS. NCUI organizes the VaikunthBhai Mehta Memorial Lecture every year in memory of Late Vaikunth Bhai Mehta, a well-known leader of the cooperative movement whose contributions in strengthening cooperative education and training are well known.
Pointing out that adoption of technology is vital, he said it is important for cooperative banks to unleash Core Banking Solutions (CBS), services for their customers. He said that NABARD has disbursed 211 crores from Cooperative Development Fund to enable the cooperative banks to adopt technology.
He added that cooperative banks can play a more proactive role than scheduled commercial banks in achieving financial inclusion. Regarding transition of PACs to multi-service centres, he said that the recent decision by NABARD to develop 35,000 PACs in mission mode planning over three years is a step in this direction.
As PACs establish consumer stores, sell cement, cattle feed, RO, water plants, construct godowns, the commercial banks cannot come close to providing any of these services. However, PACs need increasing member participation, and proactive leadership. Calling upon cooperative banks to improve their governance, he said that cooperative banks should follow a Governance index formulated by NABARD.
Dr Chandra Pal Singh Yadav, President, NCUI said that cooperatives are vital for building up Atmanirbhar Bharat.
He said that the recently created 1 lakh crore Rural Infrastructure Development Fund provides many opportunities for PACs to take benefits from the fund and contribute their best in operationalisation of this Fund.
Yadav said in recent years NCUI has made impressive contributions in the field of cooperative education and training, and would look forward to receiving technical and financial assistance from NABARD.
Earlier N. Satya Narayana, Chief Executive, NCUI extended a hearty welcome to all the esteemed dignitaries like NCUI Governing Council Members, Chairmen/M.Ds. of national level federations, and other cooperative banking officials.
The CE presented a brief profile of Late Vaikunth Bhai Mehta, a pioneering leader who made important contributions in strengthening cooperative education and training in the country. The online lecture was attended by more than 400 participants.
Dr. Bijender Singh, Vice-Chairman, NCUI proposed a vote of thanks on the occasion.
