The Reserve Bank of India (RBI) should revoke some of its policies which are detrimental to the growth of the cooperative sector in the country, Minister for Rural Development and Panchayat Raj H.K. Patil has said.
Inaugurating the centenary celebrations of Karnataka Central Cooperative Bank here on Tuesday, he said that the cooperative sector had played a key role in the empowerment of people from pre-Independence days. “Cooperative organisations have ensured a dignified life for people of all sections over the years. However, some of the recent moves by the RBI appear to be aimed at promoting foreign banking organisations at the cost of cooperative organisations. These policies will have its adverse impact on the Indian financial system in the future,” Mr. Patil said.
“Unlike cooperative banks, foreign banks have no concern for the society. Therefore, there is a need to overhaul them and take corrective measures. The RBI should encourage cooperative banks by making it mandatory for the government to make payments of crop loans for farmers through them,” he said.
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According to Mr. Patil, the cooperative movement had not lost its tempo in the State. “But, efforts should be made to engage more youngsters in the cooperative movement. The Indian cooperative sector is a time-tested one and there is no alternative other than strengthening the cooperative sector to achieve the empowerment of the rural and downtrodden people,” Mr. Patil said.
Minister of State for Textiles Rudrappa Lamani released the centenary logo of the bank. Karnataka State Cooperative Federation president Shekhargouda Malipatil, legislators B. R. Yavagal and Srinivas Mane, and bank chairman I.S. Patil were present.