The Joint Parliamentary Committee tasked with reviewing the MSCS Amendment Act 2022, met representatives of several co-op bodies on Monday to seek their views on various aspects of the new law, before finalizing its report to be placed in the country’s Parliament.
Soon after the meeting, sharing the details through social media, one of the JPC Panel members from Lok Sabha, Jagdambika Pal wrote, “Today, in the meeting of the Joint Parliamentary Committee on the Multi State Cooperative Societies Bill 2022 in Delhi, heard the suggestions and comments on the Multi State Cooperative Societies Bill 2022 from the representatives of NABARD, NAFCARD, NCDC and NCCF.
It is learned that Nabard GM & OIC R V Ramakrishna, NAFCARD’s Chairman Dolarbhai Kotecha, MD K Ravindran, NCCF’s Chairman Vishal Singh and some others represented their respective organizations.
Though none of those who appeared before the JPC were willing to comment, the Indian Cooperative came to know that NAFCARD representatives made a strong case for allowing ARDBs to work in areas where PACS are not in operation. They wanted an amendment in the Nabard Act to ease the working of Agricultural and Rural Development Banks.
The Indian Cooperative has learned that the NAFCARD representatives argued that ARDBs are there only in 16 states and there is an urgent need to amend the Act for their expansion. ARDBs are also members of DCCBs and thus are eligible for ensuring rural credit to farmers in areas where PACS are not strong, they argued.
The NAFCARD also raised the issue of Debt Recovery for co-op banks and sought a body like National Asset Reconstruction Company Limited (NARCL) which operates in the case of commercial banks, should also be considered for the co-op banking system, which does not have enough instruments for tackling NPAs.
Issues of developing norms for ARDBs to qualify for banking license was also touched upon in the meeting. It bears recalling that the Cooperation Ministry has already taken up the issue with the RBI and a set of norms are being developed for the same, informed a NAFCARD representative.
Another issue raised by participants related to quorum for Board meetings. They wanted virtual board meetings by Directors to be treated as real and the rule of physical presence for quorum be done away with. “This will cut the cost and time of directors”, said a representative
It is gathered that NCCF Chairman Vishal Singh sought more clarity on the issues of electing Chairman and Vice-Chairman in the proposed amendment bill. He wanted more clarity on the time length within which the top two posts are to be filled.
Vishal Singh also felt a need to give more autonomy to multi state co-ops in matters of maintaining service rules and guidelines. During the meeting, organized at the Parliament Annexe and chaired by CP Joshi, co-op representatives raised several other issues pertaining to the MSCS Amendment Bill, 2022, for ensuring a comprehensive growth of the cooperative sector.
