VIJAYAWADA: Underscoring the need to protect and strengthen the cooperative banking system, Chief Minister YS Jagan Mohan Reddy on Thursday directed relevant officials to take steps to strengthen District Central Cooperative Banks (DCCBS) in the state.
The Chief Minister stressed that the banking activities of the Primary Agricultural Credit Cooperative Societies (PACS) should be conducted through the RBKs and requested officials to map the PACS accordingly and link them to the RBKS, as the Bank correspondents are already working from the RBKs, liaising between farmers and banks. He told them to design a policy by taking suggestions from banking experts.
He said that cooperative banks are the banks of the state and their protection should be the top priority. Wherever possible, loans should be made at the lowest interest rates to benefit large numbers of people. He also discussed strengthening DCCBs, corporations, computerization, transparency policies and integration with RBKs to achieve greater scale.
DCCBs and corporations should be strengthened to withstand competition in the banking sector and banks would prosper by extending good amount of loans to the public, he ordered authorities to follow proper SOPs and told them to focus on bringing benefits to DCCBs, as many farmers in rural areas depend on them. Furthermore, he said cooperative banks should also take advantage of such opportunities, such as providing gold loans, which provide full security on the loans taken.
Underscoring the efforts of the state government to bring about revolutionary changes like Rythu Bharosa Kendras (RBK), for the benefit of farmers, the Chief Minister instructed officials to ensure full transparency in the provision of loans.