New Delhi, Mar 19 : With an aim to improving the working condition of Cooperative Societies and Banks in the country, the Elders in Rajya Sabha on Thursday advocated for banning political appointments in these institutions. Raising the issue under special mention, BJP lawmaker Kailash Soni said the Vaidyanathan Commission report recommended not to make political appointments in cooperatives and cooperative banks.
According to Soni, such provisions have been made in many states and the National Rural and Development Bank of the states, who give financial help to theses societies and banks, had signed a Memorandum of Understanding (MoU). But now, the rules have been changed and many politicians have been appointed as the administrators of several cooperative institutions in many states, especially in Madhya Pradesh, where they have been forced by the state government to waive off the farmers' loan, the Minister pointed out.
However, the BJP leader said the state government is not providing any financial help to these cooperative banks. Soni further said that these cooperative institutions are now facing serious financial problems, which could lead them to bankruptcy. He urged the Centre not to make any political appointments in these Cooperative societies and bring such institutions under the direct supervision of the Reserve Bank of India. (UNI)