11 August Thursday

Centre’s Leash On Co-operatives; Kerala Will Fight Back

Web Desk(TVM)Updated: Friday Nov 26, 2021

Thiruvananthapuram :  Centre’s attempt to lay hands on state co-operative banks by way of imposing strict controls using Reserve Bank will run into  stiff resistance in Kerala.  The state government will resist RBI’s moves both legally and politically. The government and co-operative sector will move unitedly in this regard.

A  request has been forwarded to the Reserve Bank on behalf of the government by state Co-operative department and by the Primary Co-operative Societies Association on behalf of the various primary co-operatives. The distinctive nature of co-operative sector in Kerala shall be explained and avenues pursued for further deliberations.

The government is also considering legal recourse  against RBI measures. State minister for co-operatives, VN Vasavan, will hold talks with legal experts on the topic Saturday.  Also being mulled is, an all-party meet in this regard. RBI recently released press note relating to amendments to banking law. The aim is to implement amendments that Supreme Court quashed, in some other guise.

The new instructions says, words such as Sangh or Bank shall not be used; deposits shall not be accepted from persons lacking voting rights and so forth. It is centre’s move to equip itself to make interventions in the state’s  co-operative sector. Co-operative sector is state domain. The apex court earlier clarified that those with and without voting rights are on par in terms of becoming depositors. The new RBI instructions run contrary to that notion.