CHENNAI: Computerisation of cooperative banking network is a priority as it would help the department take up greater responsibilities in implementing welfare measures, Minister for Cooperation K R Periyakaruppan told TNIE. The department serves more than two crore families every month through fair price shops, credit societies and marketing societies, and the goal is to improve people’s experience, Periyakaruppan said.
Excerpts from the interaction.
What’s your assessment of the department’s performance last year?
First, the department has successfully fulfilled the CM’s desire to waive off loans to the tune of Rs 20,000 crore encompassing Rs 5,013 crore in gold loans, Rs 12,489 crore farm loans and Rs 2,755 crore worth of loans taken by self-help groups. About 45.3 lakh families have been relieved from the burden of debt through this. Second, cooperative banks have recorded their highest-ever loan disbursement of Rs 68,000 crore, including Rs 37,120 crore worth of jewel loans and Rs 15,000 crore agriculture and cattle loans. The department has also undertaken a slew of measures to modernise 1,500 ration shops. About 5,000 shops have been granted ISO 9000 certification offering better public experience.
Cooperative banks are considered the primary institution for lending money to farmers. What is your assessment about their ability to help rural areas?
We have given Rs 15,000 crore farm loans to 20 lakh rural families directly benefiting nearly one crore people. To improve farmers’ income, the department has decided to transform 4,478 agriculture cooperative credit societies into multi-service centres. Farmers will also receive technological, logistical and equipment assistance to reduce input costs.
What strategies do you have to recover unpaid loans from farmers?
We are exploring an option of rationalising interest rates on loans that have been overdue for 15 to 20 years, particularly those with high interest rates of 16% or 17%. We are also considering waiving off penalties on interest for these loans. The loans were taken by farmers mortgaging their land or property. The proposed scheme is expected to recover Rs 1,300 crore and benefit 3.1 lakh farmers.
What is your comment on delay in computerisation of coop banks which is a cause for financial irregularities in many credit societies?
All 47 branches of Tamil Nadu state apex cooperative bank and 924 branches of 23 district central cooperative banks have been brought under core banking solutions platform. Recently, UPI integration has also been enabled in central cooperative banks. The entire banking network will be integrated before end of the year.
What are your plans for next year?
In a few months, we will launch UPI payment system across all ration shops. We have expressed our readiness to the government to take up greater responsibility in implementing larger schemes for which we are upgrading our banking infrastructure. We are planning to conduct more review meetings and inspections at districts this year.