Memorandum submitted by NAFSCOB Delegation to

Mrs. Usha Thorat, Dy. Governor (RPCD), Reserve Bank of India

on January 5, 2006.

 

A Memorandum entitled 'Issues for Discussion with Reserve Bank of India' was submitted to Mrs. Usha Thorat, Dy. Governor (RPCD), Reserve Bank of India at Mumbai on January 5, 2006, by a delegation from NAFSCOB consisting of Chairmen and Chief Executives of identified State Cooperative Banks. The delegation was headed by Shri K. R. Aravindakshan, Chairman, NAFSCOB. The other members of the delegation were:

 

1.                  Shri B. Subrahmanyam, Managing Director, NAFSCOB

2.                  Shri Vasanta Nageswara Rao, Chairman, Andhra  Pradesh  SCB

3.                  Shri Balbir  Tegta, IAS, Managing Director, Himachal Pradesh SCB

4.                 Shri Samir Ghosh, Chairman, West Bengal SCB

5.                 Shri R.N. Dash, IAS, Managing Director, Orissa SCB

6.                  Shri R.C.Padia, Chief  Executive, Gujarat SCB

 

The following issues were presented and discussed by the delegation:

  1.  Directives in respect of treatment of converted/re-scheduled loans on implementation of Schemes to provide ‘Relief to Farmers in distress’ and ‘Farmers in Arrears’ under doubling of Agricultural Credit – Impact

  2. Implications of re-schedulement of LT Loans on suggested accounting procedures/ particularly with regard to compliance under Section 11(1) of B.R. Act, 1949 (AACS)

  3. Need to issue Revised Guidelines on Remittance Facilities under ‘Remittance Facility Scheme, 2005’

  4. Establishment of  ‘National Payments Corporation of India’:  Related matters

  5. Imposing Section 35 (a) on certain SCBs and DCCBs – Related matters

  6. Need for upward revision of ceiling on single exposure norms for loans to be granted by SCBs/DCCBs to individuals

  7. Need for review of credit exposure norms/sectoral exposure norms for investments     by SCB/DCCBs:

  8. Need for financing minor/big hydro electric projects by SCBs in Himachal Pradesh, Uttaranchal and other hilly areas.

  9. Implications of  Vaidyanathan Committee Recommendations:

  10. Reforms in the Banking Regulation Act, 1949 as recommended by the Committee

  11. Reforms in the Cooperative Societies Act as recommended by the Committee

  12. Need for continued maintenance of SGL account with RBI by SCBs and DCCBs.

  13. Need to consider the application of State Cooperative Banks for Currency Chest Branches

  14. Need for serious examination of non-acceptance of Demand Drafts issued by Cooperative Banks

  15. Need to review the existing norms for licensing of State Cooperative Banks and District Central Cooperative Banks

  16. Need to consider and accord scheduled status to all the State Cooperative Banks and District Central Cooperative Banks

  17. Need to address the problem of heavy surplus cash in hand on day-to-day basis by State Cooperative Banks