Banking News

cooperative societies accounts: Cooperatives should open accounts in co-op banks, says Amit Shah; asks GSC Bank to create system


Union Minister Amit Shah on Friday urged the Gujarat State Cooperative Bank to develop a system so that all cooperative entities in the state can open accounts in cooperative banks. He made the suggestion while virtually inaugurating a building of Surendranagar District Cooperative Bank.

As part of a pilot project launched by GSC Bank recently, all cooperative societies in two districts have opened their accounts with cooperative banks, said Shah, who holds the Home and Cooperation portfolios in the Narendra Modi government.

“At present, cooperative entities open their accounts in other banks. Thus, cooperative banks do not have cash when they need it. The GSC Bank launched a pilot project to open bank accounts of all cooperative entities of two districts in cooperative banks. As a result, such banks in these two districts received deposits of Rs 800 crore,” said Shah in his virtual address.

The Ahmedabad-headquartered GSC Bank is an apex bank that serves the credit and financial needs of nearly 28 lakh farmers through 18 District Central Cooperative Banks (DCCBs).

“Since Ajay Patel (chief of GSC Bank) is here, I urge him to replicate this pilot project across Gujarat and open bank accounts of various cooperative entities, such as dairies and APMCs, in cooperative banks,” said Shah.

Shah informed the audience the Narendra Modi government has approved a plan to establish two lakh new multipurpose Primary Agricultural Credit Societies (PACS) across the country, for which a budget of Rs 2,500 crore has been earmarked. The new National Cooperative Policy will be launched soon, the Union minister added. On the occasion, he hailed the management of the Surendranagar District Cooperative Bank for turning it into a profit-making entity in just 14 years.

“In 2009, the bank had incurred a loss of Rs 71 crore. Today, the bank’s annual profit is Rs 7 crore. Moreover, it has deposits worth Rs 400 crore and it has given loans to nearly 28,000 farmers of this arid region,” said Shah.

The new building, spread across 1,500 square meter area, was constructed at a cost of Rs 10 crore and now has 1,000 lockers, said Shah.


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