Post on 02-Jan-2016
Views and Suggestions of the Members onEnabling Cooperative Societies Act
For Fast Tracking Micro finance and Financial Inclusion
MICROFINANCE COMMUNITY OF PRACTICE SOLUTION EXCHANGE,UNITED NATIONS, INDIA
Solution Exchange – an initiative of the UN Country Team in India
• Cooperative Acts of Different States differ from each other in context of various provisions for Financial Inclusion
• High level of diversity:Adoption of MACS/Self-Reliant Act
• Legal Environment for Cooperatives: State wise Variations – Single Act/ Double Act
• Utilization and Understanding of Multi State Cooperative Societies Act
• Difference in terms of Acceptance of Vaidyanathan Committee Recommendations
Background
Solution Exchange – an initiative of the UN Country Team in India
Present Scenario• States having Self Reliant and Old
Cooperative Societies Act
• States having only Self Reliant Act - NE
• States having Re-engineered Single Cooperative Societies Act
• States having more or Less the Same Old Act
• Multi-State Cooperative Societies Act – Applicable Across all the States
Solution Exchange – an initiative of the UN Country Team in India
• Urban Cooperative Bank Models – SEWA Bank , Cuttack Urban Cooperative Banks
• Cooperative Development Foundation
• SHG – PACS linkage Model – Bidar DCCB/ West Bengal • NABARD’s SHG Bank Linkage Programme
Cooperative Banks
• SHG – Federation Models/ Cooperative Union Model
• Thrift and Credit Cooperatives – Examples in Maharashtra
Models Experimented
Solution Exchange – an initiative of the UN Country Team in India
SPECIFIC SUGGESTIONS
Amendments in the Banking Regulation Act 1949
Self- Help Group Federations/ Sub Sectoral Cooperatives – Cooperative Acts Financial intermediation, Membership, Variety of Mf Services)
PACS As Mini Banks – Role in Micro Financing – Amendments Required
Government Role and Support for Self-Reliant Cooperatives/SHG Feds. – Financial / Regulatory
Cooperative Acts- State/ Multi State coop. Act for Urban Micro financingUrban Cooperative Banks working across the states
Assessment of Variety of States – Types of Legal Arrangements/ Coop. Acts
Studies/ Reports on enactment of Self- Reliant Act/ Other Acts- Issues Influencing
Provisions related to utilization of Surplus – Dividends , Bonus, Incentives
Solution Exchange – an initiative of the UN Country Team in India
SPECIFIC SUGGESTIONS
Salary Earners Cooperatives / Thrift and Credit Cooperatives- Rural and Urban Areas
Political will of State Governments to introduce Cooperative Reforms
Cooperative Acts/ Insurance Acts – Health Insurance/ Life Insurance/ Livestock Insurance
Conducive Regulations for Cooperatives interested in Shifting from One Act to the Other
Analyzing other relevant Acts/ Regulation in context of cooperative Reforms and MF
Provisions related to Autonomy for collaborations, Borrowings from other Banks/ Financial Institutions, Savings etc.
Solution Exchange – an initiative of the UN Country Team in India
SPECIFIC SUGGESTIONS
Prof. Vaidyanathan Committee Recommendations-Impact of Amendments is Yet to Seen at Primary Level
Members Involvement in Governance - Challenge
MACS – Suitability for BANKS is a Question Mark ?Non-Members
Membership of SHGs in Cooperatives -only in few States – West Bengal, Gujarat, Karnataka
Cooperative Act should Provide Space for other Facilitating Agencies/Organisations