Govt Pilot Program: Coop Members Open Accounts in Coop Banks

New Delhi, Dec 29 (PTI) The government has decided to take two districts on a pilot basis to ensure that members of cooperatives open their bank accounts in a cooperative bank only.

Shah made the comments after virtually inaugurating the newly constructed building of Surendranagar District Cooperative Bank, Gujarat.

"It has been decided that two districts should be taken as pilot projects and such a system should be made that every co-operative institution has its bank account in the co-operative bank only," an official statement quoted Shah as saying.

Highlighting steps taken to strengthen the cooperative sector, the minister said the Centre has made plans to increase the number of Primary Agricultural Credit Committees (PACS).

"For many years, the PACS were being closed and their number had reduced to 65,000. But now the Modi government has decided to set up 2 lakh more PACS in the entire country in addition to these 65,000," he said.

So far, 20,000 new PACS have been set up, he said and added the Centre is also spending about Rs 2,500 crore for their computerization.

The new building of the Surendranagar District Cooperative Bank, constructed at a cost of Rs 10 crore, has a provision for over 1,000 lockers, advanced golden lockers, complete computerised core banking facility and a conference hall to accomodate 100 people.

"In the coming days, this bank will fulfill all the responsibilities towards the cooperative societies of every area in Surendranagar district," Shah said.

The annual profit of the cooperative bank, set up in 1960, has reached Rs 7 crore now and its share capital of Rs 15 crore has become Rs 34 crore, while the deposits in the bank have increased to Rs 400 crore from Rs 53 crore, he said.

The Surendranagar District Bank has given loans to about 28,000 farmers, out of which 19,000 are small and marginal farmers so far, he added.