SRINAGAR, AUGUST 20:Â Commissioner Secretary, Cooperative Department, Yasha Mudgal, Thursday chaired a meeting of the High-Level Committee (HLC) to review the performance, functioning and developmental initiatives of Cooperative Credit Institutions across the Union Territory of Jammu and Kashmir.
Yasha Mudgal emphasized that cooperative credit institutions have a critical role in promoting inclusive economic growth and strengthening rural livelihoods in Jammu and Kashmir. She stressed that cooperative banks should focus on expanding financial inclusion, improving customer service, ensuring institutional sustainability and making timely and affordable credit available to farmers, rural households, entrepreneurs and other eligible beneficiaries.
Taking a detailed review of the PACS Computerization Project, the Commissioner Secretary directed all concerned to strictly adhere to the prescribed implementation timelines and ensure compliance with T-7 and T-1 requirements related to end-of-day processes and financial reconciliation. She directed that districts showing slower progress be accorded priority attention and instructed the system integrators to expedite reconciliation, provide effective handholding and training to PACS personnel and maintain continuous coordination with NABARD for resolving technical and implementation-related issues.
The Commissioner Secretary also reviewed the operational issues related to Sahakar Sarthi Private Limited. She directed the concerned cooperative banks and the Office of the Registrar, Cooperative Societies, J&K, to coordinate closely and resolve all pending issues in a time-bound manner. She made it clear that operational bottlenecks should not affect the delivery of services to members and beneficiaries.
Reviewing the progress of newly established Multipurpose PACS, Yasha Mudgal directed the concerned institutions to make these entities fully functional and economically viable at the earliest. She emphasized the need to augment rural credit flow, increase agricultural term lending and diversify into suitable non-agricultural loan portfolios to ensure the long-term sustainability of M-PACS and enable them to serve as effective multipurpose institutions for rural communities.
The Commissioner Secretary also reviewed compliance with various supervisory and regulatory requirements. She directed for strict adherence to the provisions of the Banking Regulation Act, 1949, and applicable guidelines. She called for expeditious disposal of non-banking assets, transfer of eligible unutilized funds to the Depositor Education and Awareness Fund (DEAF) and strict compliance with Know Your Customer (KYC) norms. She directed the concerned institutions to identify regulatory deficiencies and ensure their rectification within clearly defined timelines.
Emphasizing institutional accountability, Yasha Mudgal directed that future recapitalization of cooperative banks should be closely linked with measurable financial and performance indicators. She also directed the concerned authorities to expedite the convening of the Special General Meeting (SGM) and take necessary steps for the subsequent election of the Board of Directors of the J&K State Cooperative Bank in accordance with the applicable provisions.
