Pune : If non-agricultural cooperative credit societies of the state invest in nationalized banks, the rate of interest is very low and they suffer losses. Therefore, Cooperative Commissioner Anil Kawde has sent an important proposal to the government that the state government should allow these credit institutions to invest in any private scheduled bank and post office. He also explained that the amount of this investment will be determined by the Credit Institutions Regulatory Board.
It has become inevitable for credit institutions to invest in various banks. If you invest in nationalized banks, you get very low interest. If one invests two crore rupees at a time with nationalized banks, they give lower interest rates than the prevailing interest rates. In this, the credit institutions incur huge financial losses.
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Private commercial scheduled banks come forward as an additional option for credit institutions to invest. These banks are now providing services like RTGS, Nifty facility, ATM card, ECS mandate etc. to the credit institutions. However, these banks are not available to credit institutions for investment under Section 70 (d) of the Cooperatives Act. Because non-agricultural cooperative credit societies are not allowed to invest in Scheduled Commercial Banks under the provisions of the Maharashtra Cooperative Societies Act, 1960.
The Cooperative Commissionerate has been informed that the demand in the statement given by the Ratnagiri District Cooperative Credit Union Federation regarding permission for non-agricultural cooperative credit societies in the state to invest to some extent in the Scheduled Merchant Bank is correct and joint.
It is also mentioned in the proposal that it is necessary to allow these institutions to open accounts for such transactions in any private scheduled banks in order to increase the overall business of the credit institutions and to retain the customer account holders by providing all the facilities to the account holder members for electronic transactions.
Profitable return on investment in post
Investment in Posta provides fixed, profitable returns and is also safe. Cooperative Commissionerate has also suggested that both these investments should be recognized as Statutory Liquidity Fund (SLR). Most of the credit institutions have demanded that post investment be allowed.
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