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Andhra CM Jagan Mohan Reddy gives nod to digitisation of co-op banks

Agrees to implement recommendations by NABARD Consultancy Services to strengthen cooperative services 

Published: 04th March 2021 06:13 AM  |   Last Updated: 04th March 2021 09:24 AM   |  A+A-

By Express News Service

VIJAYAWADA: Chief Minister YS Jagan Mohan Reddy, who reviewed the functioning of the cooperative sector on Wednesday, agreed to implement NABCONS (NABARD Consultancy Services) recommendations on the management methods to strengthen the co-operative services. NABCONS had suggested digitisation of APCOB, DCCBs (District Cooperative Central Banks) and PACS (Primary Agricultural Credit Societies) for comprehensive banking services; and that PACS should also offer non-credit services and extend its network. 

Proposals were made for setting up one PACS for every three RBKs, and to appoint agriculture, banking, finance and accountancy professionals as directors in the boards of APCOB and DCC banks in one-third ratio. Amendment to the APCS Act to allow half of the board to retire every two-and-a-half years was also recommended.After going through the suggestions, Jagan Mohan Reddy gave his consent to amend the relevant Acts to pave the way for the implementation of the recommendations.

Jagan Mohan Reddy also decided to audit PACS regularly, and directed officials to prepare an action plan for investigation through third party agencies in case of irregularities.The chief minister said DCC banks should lend loans in a fair manner, and there should be definite procedure on disbursement of loans. Recommendations were also made to ensure DCC banks support the programmes being implemented by the government in agriculture and its allied sectors.

“It was decided to increase the market share of cooperative banks up to 20 per cent; the planning of loan disbursement should support the programmes of the RBKs and food processing MSME units,’’ an official release said. He said the cooperative services should be transparent and there should be no scope for corruption in the sector. 

“Digitisation of Primary Agriculture Cooperative Societies should be completed in a specific time.” Action plan for the digitisation would be completed within three months and the work is expected to be completed by March next year. The chief minister also reviewed multi-purpose facility centres that would bring revolutionary changes in the agriculture and allied sectors. The action plan has been prepared for completion of construction of warehouses in a year for which tenders will be finalised by April 15. “The government will spend around Rs 12,000 crore on warehouses, drying yards, cold rooms, crop collection centres, other farm equipment and other machinery,” the CM added.

During the review of the Palavelluva programme, the officials told the CM that the farmers have been getting fair price, and that the project has been extended to more districts after Kadapa. They said the cost of buffalo milk in Kadapa rose from Rs 44.31 to Rs 53.95 per litre.  

Earlier, the officials informed the Chief Minister that the DCCBs in Kadapa, Kurnool, Anantapur and Eluru are in poor condition, and their licence may get cancelled soon. “Forty-five per cent of the PACS are running in losses and 49 per cent of the mandals are not linked with the DCCBs. The DCCBs are lending only crop loans. Corruption is prevalent and there is little use of technology.”

Agriculture and cooperatives special chief secretary Poonam Malakondaiah, cooperative services special secretary Y Madhusudan Reddy, commissioner and registrar of cooperative services Ahmed Babu and other officials were present.



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