The Reserve Bank of India has decided to constitute a Committee to review the existing Short Term Cooperative Credit Structure (STCCS) focusing on structural constraints in rural credit delivery system and explore various ways to strengthen the rural cooperative credit architecture with appropriate institutions and instruments of credit to fulfill credit needs. The Committee will make an in-depth analysis of the STCCS and examine various alternatives with a view to reducing the cost of credit, including feasibility of setting up of a two-tier STCCS as against the existing three-tier structure.

2. The Terms of Reference of the Committee are as given below:

1. To assess role played by State & District Central Cooperative Banks in fulfilling the requirement of agriculture credit, the primary purpose for which they were set up

2. To identify Cooperative Banks that may not be sustainable in the long run even if some of them have met the diluted licensing criteria for the time being

3. To suggest appropriate mechanism for consolidation by way of amalgamation, merger, takeover, liquidation and delayering

4. To suggest pro-active measures that need to be taken in this direction by the cooperative banks themselves, GOI, State Governments, RBI and NABARD

5. Any other issues and concerns relevant to the subject matter.

3. Composition of the Committee would be as under:

Chairperson

Shri Prakash Bakshi, Chairman, NABARD.

Members

1. Shri V. Ramakrishna Rao, Executive Director, NABARD

2. Shri Umesh Kumar, Joint Secretary, DFS, MOF, GOI

3. Dr. Mona Sharma, Principal Secretary, Cooperation, Govt. of Odisha

4. Shri Yadavalli Vijendra Reddy, President, A.P. State Coop. Bank

5. Dr. B. Yerram Raju, Director, Dev. & Research Services (P) Ltd.

6. Dr. H. Shylendra, Professor, Institute of Rural Management, Anand

Shri C. D. Srinivasan, Chief General Manager, Reserve Bank of India, Rural Planning and Credit Department will be the Member Secretary.

The Secretarial assistance to the Committee will be provided by the NABARD, Head Office.

4. The Committee will submit its report within three months from the date of its first meeting.

R. R. Sinha
Deputy General Manager

Press Release : 2012-2013/179