(a) whether the cooperative banks are likely to get Rs. 8,000 crore fund infusion from
the Central and State Governments to tide over financial crisis;
(b) if so, the details thereof;
(c) the State-wise, names of the banks which are envisaged for the benefit under
the scheme; and
(d) the terms and conditions on which such package is likely to be given to these banks?
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,
the then Deputy Governor of Reserve Bank of India (RBI). The Task Force has, in its report,
suggested broad guidelines for framing a package for strengthening of cooperative credit
system. The report is under examination of the Government in consultation with State
Governments and other financial institutions. Government had organized a Conference of
Chief Ministers on 25th August, 2001 in which a decision was taken to re-examine the issues
relating to the assistance to be provided to the cooperative credit system as also the
funding mechanism therefore. Accordingly, a Committee of Cooperative Ministers of select
State Governments under the Chairmanship of Union Minister of State for Finance has been
set up. The Committee is expected to examine the feasibility of deiayering of cooperative
credit structure apart from the issue of sharing pattern of assistance for revitalization
of cooperatives and its funding mechanism, with a view to reduce intermediation cost in
cooperatives. The Committee is deliberating on various issues and is expected to give
recommendations shortly.