ANOTHER EMERGING "KERALA MODEL"
Kerala Cooperative Bank
The latest ordinance promulgated by
Kerala Government has objectives much beyond restructuring of the management of
District Cooperative banks(DCBs) in the state. It will, hopefully, pave the way
for formation of Kerala Cooperative Bank to be formed through merger of the
Kerala State Cooperative Bank and all DCBs in the state, a dream project of the
present Chief Minister of Kerala which found a mention in CPM’s Election
Manifesto for the last assembly elections.
Coming closely on the heels of merger
of State Bank of Travancore with SBI the formation of a big local bank gains
significance. If the new bank is able to gain scheduled bank status and the
political leadership allow the bank to function with efficiency and professionalism,
a history of sorts will be made in the cooperative sector and may emerge as yet
another ‘Kerala Model’ for other states to follow.
Cooperatives across the country had
more than their due share of problems
post-demonetization. While primary(urban) cooperative banks whose functioning is similar to
mini-commercial banks are regulated and supervised by RBI, the three/two tier
structure of cooperatives comprising State and District Cooperative Banks and
thousands of primary cooperative societies have multiple regulatory and
supervisory oversight involving RBI, NABARD and Registrar of Cooperative
Societies(State Government).
It is comforting to find that Kerala
has understood the urgency in finding a solution to a problem that has arisen
due to continued neglect of an institutional system which has been serving the
semi-urban and rural areas of the country, with all constraints. There are no
alternative conduits to ensure banking
service to their clientele in semi-urban and rural areas.
The cooperatives need to survive, and
issues like politicization, inadequate skills or problems arising from the dual
control of cooperatives by Centre and states need to be resolved once and for
all. There is need for cooperation among the judiciary, central and state governments
and cooperatives themselves in solving the immediate problems the clientele of
cooperatives are facing today. Sorting out hurdles in the formation of Kerala Cooperative
Bank quickly and amicably will go a long way in reinventing the real role of
cooperatives in India.
At this stage Centre should come
forward and support the Kerala initiative and play a proactive role in
revamping cooperatives.
M G Warrier,
Mumbai
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