SRINAGAR, AUGUST 20: Commissioner Secretary, Cooperative Department, Yasha Mudgal, today 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.
The meeting was attended by Vikas Mittal, General Manager/Officer-in-Charge, NABARD; Ram Swaroop, Deputy General Manager, Reserve Bank of India (RBI); Managing Director, J&K State Cooperative Bank (JKStCB); Managing Directors and Chief Executive Officers of District Central Cooperative Banks (DCCBs), J&K besides other senior officers of the Department.
During the meeting, Vikas Mittal made a detailed PowerPoint Presentation covering the financial and developmental performance of cooperative banks in Jammu and Kashmir.
Ram Swaroop, emphasized the importance of robust corporate governance, regulatory compliance and effective supervisory mechanisms. He called for expediting the constitution of the Boards of Directors of the J&K Central Cooperative Bank (JCCB) and the J&K State Cooperative Bank (JKStCB). 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.
The Commissioner Secretary called upon all cooperative banks to adopt a coordinated and outcome-oriented approach towards reducing Non-Performing Assets (NPAs), improving Credit-Deposit (CD) ratios, strengthening recovery mechanisms and enhancing the overall net worth of cooperative banking institutions. She stressed that improving asset quality, mobilizing deposits and expanding quality lending should remain key priorities.
Yasha Mudgal underscored that cooperative credit institutions must progressively transform into technologically enabled, member-centric and financially resilient institutions capable of responding effectively to the changing requirements of farmers, rural communities and entrepreneurs. She called for greater adoption of digital banking services, improved customer interface, strengthened internal systems and enhanced transparency and accountability in institutional functioning.
She emphasized that a robust and efficient cooperative banking network should serve as a strong instrument for expanding financial inclusion, strengthening rural livelihoods, promoting entrepreneurship and contributing to sustainable socio-economic development across Jammu and Kashmir.
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