CHANDIGARH: Punjab Cooperation Minister Capt. Kanwaljit Singh would call on NABARD Chairman and RBI Deputy Governor at Mumbai on July 25 to strongly plead the vital issues.

An official spokesman said that he would be raising issues of quantum of refinance, rate of interest on re-finance, refinance to five District Central Cooperation Banks, refinance facility for Rural housing besides financial assistance for water harvesting & women cooperatives.
                             
These issues were discussed in detail in a high level meeting of Cooperation department held here Monday under the chairmanship of  Cooperation Minister. It was decided in the meeting to impress upon the NABARD Chairman for providing liberal finances through the State Cooperative Banks to meet the short term as well as long term credit requirements of all the farmers under cooperative fold in the state and to enhance the refinance from the existing 40% to at least 70% of the advances made by the District Central Co-op. Banks.
                             
It was also decided in the meeting to raise the issue of not enhancing the rate of interest on refinance from 2.50% as on this very rate the Co-op., Banks could provide agricultural credit @ 7.0% to the farmers thereby helping them immensely by saving them from felling prey into the hands of unorganised sector i.e. Commission agents and private money lenders.   Besides this, the issues of no insistence upon Government guarantee in case of conversion of short term agri loans to medium term loans and start refinancing of 5 District Central Cooperative Banks namely Amritsar, Patiala, Tarn Taran, Ropar, & SAS Nagar which was stopped due to creation of new districts as the required information had already been submitted to NABARD  & RBI would also be discussed. It may mentioned here that due to non release of 40% share of NABARD in advancements made by Distt. Coop. Banks they were compelled to provide crop loan at the rate of 7% either out of their own resources or loan raised from Punjab State Co-op. Banks, which costs more than the rate of interest being charged.
                             
The  Co-op., Minister would also plead to enhance refinance to Punjab State Co-op. Agri Development   Banks to the tune of 491.73 crore for the year 2007-08 which was limited to Rs. 235.85 crore in the previous year and not to insist on Government guarantee for floatation of debentures keeping in view the sound financial health of the Bank.
                             
The other issues to be taken up with NABARD chairman includes conversion of Co-operative Agricultural Development Banks as full fledged banks to reduce their dependence on external resources i.e. NABARD and to enable them to provide services as available from other Banks.
                             
The visiting State Cooperation Minister would also advocate for refinance facility for rural housing directly to Housing Federation and significant assistance for water harvesting & women Co-operatives. A case for approval of new Urban Co-op. Banks will also be pleaded so as to take care of urban consumers.
                             
Prominent amongst other who were present in the meeting included  Kusumjit Sidhu, Financial Commissioner Cooperation,  Viswajit Khanna, Registrar Cooperative Societies,  K.S. Palne, M.D. Punjab State Cooperative Bank Ltd. and  G.S. Mangat, M.D. Punjab State Cooperative Agri. Development Bank.