Views and Suggestions of the Members onEnabling Cooperative Societies Act

For Fast Tracking Micro finance and Financial Inclusion

MICROFINANCE COMMUNITY OF PRACTICE SOLUTION EXCHANGE,UNITED NATIONS, INDIA

Solution Exchange – an initiative of the UN Country Team in India

• Cooperative Acts of Different States differ from each other in context of various provisions for Financial Inclusion

• High level of diversity:Adoption of MACS/Self-Reliant Act

• Legal Environment for Cooperatives: State wise Variations – Single Act/ Double Act

• Utilization and Understanding of Multi State Cooperative Societies Act

• Difference in terms of Acceptance of Vaidyanathan Committee Recommendations

Background

Solution Exchange – an initiative of the UN Country Team in India

Present Scenario• States having Self Reliant and Old

Cooperative Societies Act

• States having only Self Reliant Act - NE

• States having Re-engineered Single Cooperative Societies Act

• States having more or Less the Same Old Act

• Multi-State Cooperative Societies Act – Applicable Across all the States

Solution Exchange – an initiative of the UN Country Team in India

• Urban Cooperative Bank Models – SEWA Bank , Cuttack Urban Cooperative Banks

• Cooperative Development Foundation

• SHG – PACS linkage Model – Bidar DCCB/ West Bengal • NABARD’s SHG Bank Linkage Programme

Cooperative Banks

• SHG – Federation Models/ Cooperative Union Model

• Thrift and Credit Cooperatives – Examples in Maharashtra

Models Experimented

Solution Exchange – an initiative of the UN Country Team in India

SPECIFIC SUGGESTIONS

Amendments in the Banking Regulation Act 1949

Self- Help Group Federations/ Sub Sectoral Cooperatives – Cooperative Acts Financial intermediation, Membership, Variety of Mf Services)

PACS As Mini Banks – Role in Micro Financing – Amendments Required

Government Role and Support for Self-Reliant Cooperatives/SHG Feds. – Financial / Regulatory

Cooperative Acts- State/ Multi State coop. Act for Urban Micro financingUrban Cooperative Banks working across the states

Assessment of Variety of States – Types of Legal Arrangements/ Coop. Acts

Studies/ Reports on enactment of Self- Reliant Act/ Other Acts- Issues Influencing

Provisions related to utilization of Surplus – Dividends , Bonus, Incentives

Solution Exchange – an initiative of the UN Country Team in India

SPECIFIC SUGGESTIONS

Salary Earners Cooperatives / Thrift and Credit Cooperatives- Rural and Urban Areas

Political will of State Governments to introduce Cooperative Reforms

Cooperative Acts/ Insurance Acts – Health Insurance/ Life Insurance/ Livestock Insurance

Conducive Regulations for Cooperatives interested in Shifting from One Act to the Other

Analyzing other relevant Acts/ Regulation in context of cooperative Reforms and MF

Provisions related to Autonomy for collaborations, Borrowings from other Banks/ Financial Institutions, Savings etc.

Solution Exchange – an initiative of the UN Country Team in India

SPECIFIC SUGGESTIONS

Prof. Vaidyanathan Committee Recommendations-Impact of Amendments is Yet to Seen at Primary Level

Members Involvement in Governance - Challenge

MACS – Suitability for BANKS is a Question Mark ?Non-Members

Membership of SHGs in Cooperatives -only in few States – West Bengal, Gujarat, Karnataka

Cooperative Act should Provide Space for other Facilitating Agencies/Organisations

Solution Exchange – an initiative of the UN Country Team in India

Thanks

www.solutionexchange-un.net.in