A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Gangele, Rajkumar
- Good Governance Initiatives-A Study of District Central Cooperative Bank Ltd., Balaghat (M.P.)
Authors
1 APEX Bank Training College, Bhopal, M.P., 462 001, IN
2 Sagar Institute of Research Technology & Science, Ayodhya By Pass Road, Bhopal, M.P., 462 041, IN
Source
TIMSR Journal of Management Research, Vol 1, No Spl (2016), Pagination: 144-153Abstract
Rural credit cooperatives in India were originally envisaged as a mechanism for pooling the resources of people with small means and providing them access to cheap and cost effective financial services. Democratic in features, the movement was also an effective instrument for development of degraded waste lands, increasing productivity, providing food security, generating employment opportunities in rural areas and ensuring social and economic justice to the poor and vulnerable. In light of this, the cooperatives occupy an important position in the Indian financial&banking system.
Cooperative Credit structure of India is deep&dense. As on 31.03.2014, there are 13811 District Central Cooperative Bank branches are working in entire India. With its affiliated 572801 Primary Agriculture Credit Cooperative Societies, 2990696 Lakhs farmers were benefited from short, medium&long term agriculture credit worth amounting INR 21794084.00 Lakhs.
Despite the phenomenal outreach and volume of operations, the health of a very large proportion of rural credit cooperatives has deteriorated significantly. The institutions are beset with problems like poor governance infrastructural weaknesses, operational inefficiencies and the consequent impairment of their financial health. Several factors such as low borrowing membership, low resource base, lack of democratization and professionalism, high incidence of over dues and almost stagnant recovery performance have led to the deterioration in the financial soundness of cooperatives.
The ischolar_main cause of the poor financial state of many institutions of the STCCS lies in their impairment of governance and as a direct result of this also in their impairment of management. The impairment is mainly caused by the dual controls and the consequent lack of accountability coupled with excessive interference and controls with the corporate governance, management and operations of the institutions. This is effecting negatively on their professional management and performance as well as their functioning as democratic, self- reliant and member-centric cooperatives.
Reforming the cooperative credit structure in India has been engaging the attention of the Government of India and various state governments since the last decade and especially during the last three years since the implementation of the STCCS Revival package 2006. This research paper documents the various initiatives undertaken in the District Central Cooperative Bank, Balaghat, towards initiating the intended legal and institutional reform process and strengthening their management as envisaged in the RP 2006.
Keywords
Autonomy, Governance, Revival.References
- Banking Regulation Act, 1949.
- Basel Committee on Banking Supervision, “Enhancing Corporate Governance for Banking Organizations”-Basel: February 2006
- Financial Statement of year 2015 of DCCB, Balaghat (M.P.)
- Memorandum of Understanding signed by DCCB, Balaghat under GoI’s Revival Package 2006.
- MP Cooperative Societies Act, 1956.
- NABARD circular No. NB.DCRR/591 / D-1/2007-08, 26 July 2007
- NABARD circular No NB.IDD. COOP.ST /1111 /V.20/2010-11, 21 Sept. 2010
- NABARD circular No. NB.IDD.Coop.CB/2880/CGFC – 1/2012 – 13, 25 March 2013
- NABARD circular No. NB.IDD/Coop.ST/1608/V.20/2013 – 14, 20 Sept 2013
- Organization for Economic Cooperation and Development, 2004 - OECD Principles of Corporate Governance- Paris
- Package for Revival of Short Term Rural Cooperative Credit Structure, Ministry of Finance, GoI, dated January 06, 2006
- Report of the Task Force on Revival of Rural Cooperative Credit Institutions