Views and Suggestions of the Members on Enabling Cooperative Societies Act For Fast Tracking Micro finance and Financial Inclusion MICROFINANCE COMMUNITY.

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