THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (e): The Government of India had set up a special Task Force in
August 2004 under the Chairmanship of Prof. A. Vaidyanathan, to suggest an
implementable action plan for reviving the Short Term Cooperative Credit
Structure (STCCS). The main recommendations made by the Task Force inter-
alia include:
1. Financial package for STCCS covering accumulated losses and assistance
to bring all cooperatives, including PACS to minimum CRAR of 7%.
2. Technical assistance to cover the cost of training and capacity
building to improve the financial, management skills and computerisation.
3. Legal and Institutional Reforms in the State Cooperative Societies Act.
As a part of the approved package based on the above recommendations, 25 states
have signed the Memorandum of Understanding (MoU), which are covered under the
Revival Package (RP).
As per the Annual Policy Monetary Statement of RBI 2012-13 released on
17 April 2012, RBI has announced constituting a Working Group to review
the functioning of the STCCS, which will undertake an in-depth analysis
of the STCCS and examine various alternative with a view to reducing the
cost of credit, including feasibility of setting up of a two-tier STCCS
as against the existing three-tier structure.
