Agri and Rural Development Bank has to be reform

The Coimbatore and Nilgiris District Cooperative Primary Agricultural and Rural Development Bank Employees Association has appealed to the Government to bring in reforms to revive and strengthen the co-operative primary land development and rural development banks in the State.A release from P. Nanjappan, general secretary of the Association, said 180 co-operative agricultural and rural development banks across the State, 17 co-operative banks in Coimbatore and Nilgiris districts were struggling for survival for the last three years.As a result of the financial crunch, these banks were not able to provide fresh loans to farmers or development loans to the small business entrepreneurs. Massive stagnation in loan recoveries due to bans, stay orders and loan waivers and rebate on interest rates had resulted in losses amounting to several crores of rupees and the reformation process had not yielded any results.

The concessions extended to farmers under the `one-time loan waiver' in 2005, `co-operative farm loan waivers' in 2006 and `non-farm sector loan interest waiver and waiver of penal interest' in 2007 running into several crores of rupees had caused serious financial instability for the primary land development banks. Hence, there had to be comprehensive and coordinated reforms for strengthening these banks, he said.To protect the staff welfare, temporary staff should be regularised. Steps should be taken for disbursement of terminal benefits without deductions to the staff due for retirement. Anomalies in wage accords reached since 1997 should be rectified. 50 per cent of dearness allowance should be merged with the salary for the staff as it was done in the case of Central Government. He also pressed for expediting compassionate ground appointments and pay disbursement with dearness allowance as per the latest pay structure, filling up of sanctioned vacancies, increasing the age of retirement from 58 to 60.

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