Business News | Cooperation of All, Welfare for All, Equal Distribution of Profits Should Be at Core of Cooperation Sector: Amit Shah

New Delhi [India], November 26 (ANI): Cooperation from all, welfare for all, and equitable profit distribution are three key principles that should underpin the cooperative sector. Without these, achieving the intended goals would be difficult, Home Minister Amit Shah said during the diamond jubilee celebration of the National Federation of State Co-operative Banks Ltd (NAFSCOB).

Primary Agricultural Credit Societies (PACS) form the foundation of state and district cooperative banks, emphasised Home Minister Shah, who also oversees the Ministry of Cooperation.

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Shah stated that unless PACS are computerised and made administratively efficient, district and state cooperative banks cannot function effectively.

"If district and state cooperative banks are to remain robust, we must ensure PACS are strengthened. After establishing the Ministry of Cooperation, the government computerised almost all PACS. The software operates in the language of the respective state and is available in eight languages," Shah said.

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He further explained that PACS are now connected with district and state cooperative banks, as well as the National Bank for Agriculture and Rural Development (NABARD).

PACS serve as the grassroots arms of the short-term cooperative credit structure. They interact directly with rural agricultural borrowers, providing loans, collecting repayments, and handling distribution and marketing activities.

These societies occupy a pivotal position in the cooperative credit structure, forming its foundation. They act as the final link between ultimate borrowers and higher financing institutions, such as Scheduled Commercial Banks, the Reserve Bank of India (RBI), and NABARD.

NAFSCOB maintains data on district and state cooperative banks and PACS, which form the basis for agricultural sector financing.

The National Federation of State Co-operative Banks Ltd. (NAFSCOB) was established on May 19, 1964, to facilitate the operations of State and Central Co-operative Banks and to promote the development of cooperative credit.

During his address, Shah expressed concern over a decline in the cooperative spirit in some PACS and cooperative banks.

"This is a matter of concern. The value of cooperation must be reinforced. All issues in a village should concern PACS, those at the district level should be addressed by district cooperative banks, and similarly, state cooperative banks should focus on state-level problems," he said.

"Cooperation from all, welfare for all, and equitable profit distribution are three essential practices that must guide the cooperative sector. Without these, achieving the envisioned goals is not possible," he reiterated.

Shah also underscored the importance of transparency, describing it as the most critical aspect of the cooperative sector. (ANI)

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