Three selfless cooperators have thrown themselves into analyzing the ills/benefits of RBI control of cooperative banks on the platform of Indiancooperative.com. We think it in the fitness of things to publish it for the benefit of the people in general.........
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Cooperatives have played a significant role not only in providing agricultural and rural credit, but also in ensuring other linkages like inputs for farming and marketing avenues for products. As they were mainly operating in rural and semi-urban areas, it took longer time for this sector to access modern skills and technology. NABARD established in 1982 could not make much headway in revitalizing cooperatives, in the absence of legislative and administrative support from central and state governments and the institution found satisfaction in continuing to be an appendage of RBI doing some ‘safe’ business through established and credit-worthy cooperative banks and commercial banks.
Banks like MSCB which were lucky to have accounts of large profit-making organisations on their books are exceptions. Let us look at this disputed episode as a case where MSCB was able to do its business better and show a better picture of its balance sheet with timely guidance from RBI/NABARD. These regulatory/supervisory institutions generally do not interfere in the administration of banks they oversee except as part of their mandated responsibilities.
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