Southern States - Andhra Pradesh   

Steps to protect coop. banks urged

By Our Special Correspondent

VISAKHAPATNAM NOV. 14. Speakers at a `seminar for protection of urban cooperative banks in north Andhra' underscored the need for measures to protect the banks which serving the people wholeheartedly.

Initiating the discussion, the Chairman of Visakhapatnam Cooperative Bank and president of A.P. Urban and Town Cooperative Banks Association, Manam Anjaneyulu, said that the aim of the seminar, organised as part of the National Cooperation Week celebrations, was to discuss the proposed changes in the Cooperative Act as also review the performance of the institutions, particularly in the wake of certain lurking dangers in the name of amendments to the Act. Proper coordination among the RBI, State Government, managements of the cooperative banks, their staff and members would strengthen the institutions and the cooperative sector, he felt. Similar seminars would be conducted in other regions to create public awareness, he said.

In this context, he regretted that the Government was not taking any action against economic offenders who had defrauded the public, despite being forewarned that some of the banks in which the managements misappropriated funds, were started with malafide intentions. As the public sector banks, which were providing only 11 per cent loans against the mandatory 18 per cent to the agri sector, it was the urban banks in the cooperative sector that came to the rescue of the farmer, he pointed out, and called for proper measures to protect the banks, a majority of which were quite successful.

The Secretary of the State association and Chairman of the Bhimavaram Cooperative Bank, Grandhi Srinivas, in his speech noted that while the rural sector was the lifeline of the nation's economy, the cooperative sector was at the heart of rural sector. The cooperative movement was started before the freedom movement. However, despite attaining Independence to the nation, there was still no freedom for the cooperative sector, which was now under threat from the Government. Instead of taking measures to strengthen the cooperative sector, the Government was coming out with steps which tend to ruin it he lamented, and called for creating an awareness among the public on the importance of the cooperative sector which benefited them a lot.

On the proposed changes, he said that when it was pointed out to officials that organising general body meetings with one-fifth of the members who were several thousands in number, would not be possible, the officials even went to the extent of suggesting steps like forgery of signatures in attendance to abide by the rules. "Unfortunately, the Government never consulted the experts in the cooperative sector before formulating the rules which was why they are encountering such problems'', he said. He also appealed to the media to play its role in enlightening the public on the need to protect the cooperative sector.

The Chairman of Kanakamahalakshmi Bank in the city, P. Raghunatha Rao, said that it was unfortunate that the lot of cooperative banks in the State suffered due to irregularities committed by a few. He called for deterrent action against the culprits to save the cooperative banks. He also criticised the Government, which instead of encouraging the cooperative sector, was advising the Government departments not to take demand drafts or deposit money in the cooperative banks.

The Chairman of the Vizianagaram Cooperative Bank, Gowrisankar, condemned the attitude of the Government which set up hoardings which tarnished the image of the urban banks and were in bad taste. The Chairman of Maharaja Cooperative Bank, M.R.K. Raju, Chairman of Salur Cooperative Bank, Nageswara Rao, Prof. Chandu Subbarao, vice-principal of Ramdas Cooperative Training Institute, S. Ganapathi Rao, and others participated in the seminar.

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