The cooperative sector in the country at large and Kerala in particular is now being made to contend with opposition at the global level, including from the World Bank, according to the State Finance Minster, Dr T. M. Thomas Isaac.
On the home turf, tough banking acts and tougher postulations piloted by bodies such as the Vaidyanathan Committee report were bothering the cooperatives no end, Dr Isaac said.
The Minister was delivering the inaugural address at a seminar on ‘Local Development, Co-operative Sanghs and Self Help Groups' organised as part of All-India Co-operative Expo-2009 here on Tuesday.
‘GOOD WORK'
The Finance Minister warned that that the ‘good work' by the co-operative banks in the State by virtue of providing loans at the interest of a mere five per cent was sought to be torpedoed by the World Bank's proposed move to come up with similar loans.
Co-operative banks have been doing well despite business rivalry from scheduled and nationalised banks as also other financial institutions.
The Minister spelt out statistics to drive home his point and emphasised that co-operative banks are here to stay for permanently, come what may.
“In the prevailing situation and in the midst of globalisation and economic slowdown, co-operative banks are the surest and best bet for the common man.
Backed by Self Help Groups (SHGs) like Kudumbasree and Ayalkkoottams (neighbourhoods), micro finances are gaining wide attention.
“The network of the two SHGs now reaches out to 37 lakh people, arguably the biggest ever network anywhere. These SHGs could be used in a more productive way at the panchayats-level or even at local self governments,” Dr Isaac told the audience that included co-operative workers from all over the state, MLAs, and officials.
Dr Isaac noted that women-only groups should be given more leeway to gain in popularity. He also complimented co-operative banks for agreeing to participate financially in the State Government programme for ‘House for all.'
Source : Business Line