(a) whether the Reserve Bank of India has sought more powers to regulate cooperative
banks from the Ministry;
(b) if so, whether the move is aimed at doing away with (he dual control by the Central
Bank and registrar of cooperative societies in this bank;
(c) if so, whether any concrete decision in this regard has been taken; and
(d) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL):
(a) to (d) Government had appointed a Task Force to study the Co-operative credit system
and suggest measures for its strengthening under the Chairmanship of Shri Jagdish Capoor,
Deputy Governor, Reserve Bank of India (RBI). The Task Force has recommended that for
removing overlapping of controls and granting functional autonomy and operational freedom
to co-operatives there a need to prepare specific action plan refining clearly the
relationships, the roles and responsibilities in respect of all concerned agencies viz.
Central Government, State Government, Reserve Bank of India (RBI) and National Bank for
Agricuitrue and Rural Development (NABARD) and Apex Bank Co-operative Institutions. The
Task Force has emphasized that banking functions should be brought completely under the
control of Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) to be
regulated by RBI. The report of the Task Force is being examined by tfcie Government.