India should have at least one lakh multi-purpose cooperative societies to strengthen grassroots financial self-reliance, NABARD and RBI Director Satish Marathe said on December 20, calling for their expansion across the country. He noted that of the existing 72,000 cooperative societies, around 42,000 are currently operating in profit, and stressed that every society must be run on sustainable and profit-oriented lines.
Addressing an awareness seminar for Presidents and CEOs of Primary Agricultural Cooperative Societies in Hyderabad, organised under the aegis of Telangana Sahakar Bharati at the Telangana State Urban Cooperative Bank Federation, Marathe said that NABARD plays a crucial role in promoting economic self-reliance among ordinary citizens. He pointed out that nationalised banks are present in only about two lakh villages, which is inadequate for a country with nearly seven and a half lakh villages.
Emphasising the need to bridge this gap, he said cooperative societies must function more efficiently and be transformed into multi-purpose entities offering up to sixteen different services. According to him, a strong and diversified cooperative structure is essential to meet local credit and service requirements.
During the interaction, the President of the Dharur cooperative society criticised district cooperative banks, alleging that their functioning was a key reason behind losses incurred by societies. He stated that direct linkage with the Apex Bank could help reduce the interest burden. The President of the Shamshabad society raised concerns over increased harassment by Income Tax officials.
Several CEOs, including Eshwar Goud, Ganesh, Ramdas, Jahangir and Narayana Reddy, flagged issues related to the share withdrawal mechanism. They said members often withdraw their share capital while repaying loans, leading to financial stress for societies. They also alleged that repeated demands by district cooperative banks for share deposits were contributing to mounting losses.
The seminar was attended by Sahakar Bharati National Marketing Sale In-charge and Andhra Pradesh State President Y. Raghunadha Babu, Telangana Cooperative Urban Banks Federation Working Chairman Madanagopala Swamy, Sahakar Bharati Telangana President Y. Upender Reddy, State General Secretary Nagilla Kumaraswamy, and other representatives from the cooperative sector.
