Omprakash Dadappa alias Kaka Koyate, who is heading the Maharashtra State Cooperative Credit Societies Federation (MAFCOCS), has listed out several challenges facing credit cooperative societies. He also made several demands on behalf of Maharashtra credit cooperative societies.
Talking to the Indian Cooperative, Koyate said, “There are many burning issues related to credit cooperatives which need to be resolved at the earliest. We have also met the Maharashtra Cooperation Minister Dilip Walse Patil and apprised him of the issues”.
“There is a need to create a portal for the cooperative credit societies on the lines of the portal created by the Union Ministry of Cooperation for the Multi-State Cooperative Societies.”, said Koyate.
He further added, MAFCOCS has launched a ‘CRASS System’ on the lines of CIBIL for safe disbursal of loans by Credit Co-operative Societies. The said system has also been approved by the state cooperative department. But if the Cooperative Department makes it compulsory for Cooperative Credit Societies that the credit allocation of Cooperative Credit Societies can be secured”.
“Many credit co-ops in Maharashtra are facing trouble because of the fall out of several urban cooperative banks and District Central Cooperative Banks of the state. As, a few of credit co-ops of Maharashtra had made investment in the beleaguered cooperative banks and due to their fallout are facing huge financial difficulties”, the MAFCOCS Chairman said.
Giving an example, Koyate said, “Recently, the RBI cancelled the license of Malkapur Urban Cooperative Bank. In this bank, the deposits of around 175 credit co-ops of Maharashtra worth of Rs 300 have been stuck”. He demanded appointing a Board of Trustees of Depository Credit Institutions in these banks instead of appointing a liquidator from the Co-operative Department.
Koyate further demanded that in Maharashtra the assistant registrar should be given the right to sanction branches. Presently, in the state the credit cooperatives had to seek permission from the cooperative commissioner to open new branches but it takes a long time. This is creating obstacles to the growth of cooperative societies in remote areas, he underlined.
Besides, the Reserve Bank of India has allowed cooperative banks to take Long Term Deposits to increase their capital adequacy. Similar permission should be given to cooperative credit societies also.
“Maharashtra State Cooperative Credit Union Federation has been demanding insurance cover for the deposits of credit institutions for the past several years. In Ahmednagar District, the scheme of protecting deposits under Liquidity Base Protection Fund through Ahmednagar District Fixed Fund Cooperative Society has been successfully operating for the last 10 years with the approval of the Cooperative Department”, he informed.
Koyate further added, “A proposal to create a similar scheme at the state level was submitted by the MAFCOCS to the Office of the Cooperative Commissioner. But the commissioner’s office has rejected this proposal without hearing any of our views on the matter. The State Federation has filed an appeal with the Union Ministry of Cooperatives in this regard”.