(a) whether the World Bank has provided assistance to improve the functioning of State cooperative banks, district cooperative banks and Agricultural Credit Societies;
(b) if so, the details thereof;
(c) whether the Government is formulating any scheme to improve the health of these
institutions and to cater to the financial needs of the poor fanners; and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) & (b) : Yes, Sir. Out of the total financial package of Rs. 13596 crore, for strengthening
the Short Term Cooperative Credit Structure(STCCS) in the Country comprising State Cooperative
Banks(SCBs), District Central Cooperative Banks(DCCBs) and Primary Agriculture Credit
Societies (PACS), the World Bank has agreed to provide an assistance of US$600 million to
the Government of India. The World Bank assistance is proposed in the form of loan of
US$300 million from International Bank for Reconstruction and Development (IBRD) and a
credit of SDR 196.8 million (equivalent to US$ 300 million) from International Development
Association (IDA).
(c) & (d) : The Government has approved a revival package to strengthen Short Term Rural
Cooperative Credit Structure (STCCS). The States willing to implement the package are required
to sign a Memorandum of Understanding (MoU) with Central Government and NABARD for carrying
out certain legal and institutional reforms.
Financial assistance for STCCS under the package is available for cleansing of Balance
Sheet as on 31st March 2004 and increasing the capital to a specified minimum level subject
to legal and institutional reforms. In order to ensure that STCCS continues on sound
financial, managerial and governance norms, technical assistance is to be provided to
upgrade institutional and human resources of CCS, computerization and setting up proper
internal control and accounting systems.