Cooperative will flourish only if there is a bank in all dists

08-08-2021

Neelmegh Chaturvedi, Indore
Madhya Pradesh Chief Minister Shivraj Singh Chouhan has made an important announcement regarding cooperatives in a workshop at Mantralaya on 6th August. Its essence is to make cooperatives a 'growth engine' in Madhya Pradesh. This is possible only when each district of the state gets its own cooperative bank as per the earlier arrangement. Due to the loose system, one-fourth of the districts of the state are without district cooperative central banks.
At present, 14 out of 52 districts of the state do not have a District Co-operative Central Bank. With the status of co-operative 'navel', this bank is a strong link of the intermediate cooperative credit movement. District banks are not only cooperative undertakings. From here one gets the education and initiation of leadership and management. The district banks of the country produced the President, the Union Home Minister. Dr. Shankar Dayal Sharma was the chairman of Bhopal District Co-operative Central Bank. Smt. Pratibha Devisingh Patil joined District Co-operative Central Bank as the President of Jalgaon Urban Co-operative Bank. Union Home Minister Amit Shah once took over the leadership of the Ahmedabad District Co-operative Central Bank. This Ahmedabad-based bank has topped in Asia in terms of deposit collection.
The structure of the District Co-operative Central Bank includes all types of cooperatives such as agriculture, urban credit, oilseeds, milk, sugar, processing, industrial, marketing, procurement and other types of co-operatives. It is well known how shocked the cooperative workers, leaders and management are due to not having their own district cooperative central bank in a quarter of the districts.

21 years have passed: For 21 years, the phase of only efforts is going on. If the matter progresses, then the cooperative leadership and management are defeated in front of the regulator! Governments went, came but the newly formed districts did not get their bank. Efforts to give new districts their cooperative 'navel' were not sustained with strong political will.

Strong will of the government necessary: The government gets its schemes operated by the district cooperative central banks, but keeps the deposits in public sector banks. At the time of loan waiver, takes the amount, promises to return it, but does not return it. Cooperative leaders take a pledge to take money from the government. When they come to the government, they forget. At many places, even on the ground of the feasibility paradigm, there is a weakness in bank formation.

Where has the policy of one district-one bank gone?: This situation prevailed in the state from the year 2000. Whereas the policy of the Reserve Bank of India has been that of 'One District - One District Co-operative Central Bank'. All the areas discussed by the Chief Minister are connected with cooperative 'nabhi' through on-ground cooperatives.

Problem since creation of Chhattisgarh: Till the year 2000, there used to be District Co-operative Central Bank in every district in Madhya Pradesh. In MP, there were 45 districts until Chhattisgarh became a separate state. A separate state of Chhattisgarh was formed with 7 districts. The remaining 38 districts and only 38 district cooperative central banks. In view of the recommendations of the District Reorganization Commission, 7 more districts were created in MP. A total of 45 districts were restored, but the number of district cooperative central banks remained 38. Later 7 more districts were formed respectively. The total districts became 52, but the District Co-operative Central Bank remained 38. The newly formed districts were merged with the banks of their erstwhile districts. From there the co-operative movement is still managed.

Self-reliant Madhya Pradesh and Co-operatives: Green (agriculture), white (milk), blue (fishery), golden (oilseeds) and all other color revolutions are cooperative in Madhya Pradesh. The cooperative system also raises the slogan 'Self-reliant Madhya Pradesh'. The state government and the cooperative leadership make vigorous efforts, only then the districts can get a cooperative 'navel'. Decentralized credit facilities can be easily available for tourism, cattle rearing, processing, horticulture, fisheries. Therefore, along with making cooperatives a growth engine, the slogan should be cooperative - every district should have its district cooperative central bank. This innovation of Madhya Pradesh will be a guide for other provinces also.