The All India Cooperative Bank Federation (AICBEF) has demanded the State and the Centre Governments to infuse adequate capital in Cooperative Banks for rejuvenation of rural and agricultural sector.
In a resolution adopted at the 7th national conference of the union, the AICBEF urged to bring Primary Agricultural Credit Societies and Primary Agricultural and Rural Development Banks under Banking Regulation Act, to exempt Cooperative Banks from Income Tax.
Inaugurating a seminar on the topic, “Role of Cooperative Banks in Rural and Agricultural Economy; challenges and prospects”, Kerala State Minister for Cooperation Kadakampally Surendran said that the proposed Kerala Cooperative Bank, through delayering and bringing together of State and District Cooperative Banks will create a systemically sound bank, technology-driven modern banking products and services within the system at cheaper rates, retaining the profits also within the system and help in unlocking funds for productive purposes.
The need of the hour was to rebuild the image of the Cooperative Banks to make it strong, vibrant, professionally-managed with proper governance, systems and business plan for effective intervention in agricultural and rural development activities, he added.
Former Deputy Governor of the Reserve Bank of India, R Gandhi, delivered the keynote Address. C P John, former Member of State Planning Board, C H Venkatachalam, General Secretary, AIBEDA, K S Krishna, Joint Secretary of AIBEA spoke on the occasion.