SRINAGAR: The state needs to find an “out-of-box solution” to revive the golden era of cooperative banking, the Chief Minister Mufti Mohammad Sayeed said Saturday.
Speaking at the inaugural function of the BoDs Meeting of National Federation of State Cooperative Banks (NAFSCOB) at SKICC here, Sayeed said he has asked the state’s Finance Minister to “amalgamate all cooperative banks in the state under one roof” to make them a “potent institution” for rural financing.
He asked the cooperative institutions to “carve out a niche in becoming viable institutions”.
Emphasizing upon the need to revive rural economic activities, including the agro-based and cottage industries, Sayeed said the institutional finance from cooperative banks can play a vital role.
Asking the delegates from J&K to avail the “rare opportunity” to interact with the national experts on cooperative movement, the CM called for drawing a “comprehensive roadmap” for revival and development of the rural sector in the state.
He said the ruling PDP-BJP coalition will also explore the possibility of providing essential commodities to the people in rural areas through cooperative societies.
In his address at the event, Minister for Finance, Hasseb Drabu, announced the government’s decision to “recapitalize all the cooperative institutions”.
“I advise the cooperative banks to concentrate on their area of expertise. They should become micro-financiers of the state and their focus should be on localized sectors.”
The Finance Minister said he would examine the possibility of leaving certain core sectors of rural financing with the cooperative banks “so that they are able to focus on their domain expertise”.
Minister for Cooperatives, Chering Dorjey, said the proposed capital infusion of Rs 278 crore will prove to be an “elixir” for cooperative banks in the state, enabling them to “regain vibrancy and work with renewed zeal and commitment”.
“The government has signed a MoU for availing a recapitalization package with the centre and NABARD, claiming 50 per cent of the total share,” he said.