The proposed Kerala Cooperative Bank (KCB), which will convert the existing three-tier cooperative credit sector into a two-tier one will strengthen the sector, Chief Minister Pinarayi Vijayan has said.
Inaugurating the 8th Sahakarana Congress (cooperative congress) here on Saturday, Mr. Vijayan said efforts to make the KCB into a reality were in progress. Observing that the cooperative credit sector in the State was excelling in its performance, he said they were facing various problems. The credit sector, serving as a major financial institution in the State, was still experiencing the adverse impacts of demonetisation.
₹1.5 lakh crore deposits
“In the wake of demonetisation, there were attempts to destroy the credibility of the cooperative credit societies. They were fearful of erosion in their deposits,” the Chief Minister said adding there were attempts to stymie the credit sector, which had deposits of ₹1.5 lakh crore. The sector could overcome the crisis by standing united, cutting across political differences, though there were feeble voices against the united move.
The cooperative sector had faced an adverse situation following the adoption of globalisation policies, the Chief Minister said. It served as the people’s own sector even while the State Bank of India (SBI), which should have acted as a model, had levied ₹1,771 crore by imposing minimum balance compliance.
‘Change with times’
Appreciating the dairy societies working under the three regional unions of the Kerala Cooperative Milk Marketing Federation (Milma) for achieving near total self-reliance in milk production, he called upon the handloom, fisheries and coir sectors under the cooperative system to adapt changes in tune with the changing times.
Tourism and education sectors under the cooperative system should so further improve their functioning, he said.
