An urgent appeal has been made to the Karnataka government and all its legislators to prioritize the critical issues plaguing the state's cooperative credit societies during the upcoming winter session of the legislature. The call comes from Sanjay Panchakshari Hosmath, director of the Karnataka State Cooperative Credit Societies Federation in Bengaluru.
Session Venue and Historical Context
The winter session is scheduled to be held at the Suvarna Soudha in Belagavi from December 8 to 20. In a formal release, Hosmath highlighted the deep-rooted history of the cooperative movement in India, which began 120 years ago in Kanaginahal village of Gadag district. The pioneer was Siddanagouda Sannaramanagouda Patil, revered as the 'Father of Indian Cooperation'.
Despite this legacy and decades of serving as pillars of rural economic strength, Hosmath stated that cooperative credit societies continue to suffer. He attributed this ongoing struggle to a persistent lack of focused and protective government policies, describing the situation as an unfortunate reality for the sector.
Key Demands for Immediate Resolution
The federation has outlined a series of pressing demands that require immediate decisions from the assembly. These issues are critical for the survival and growth of cooperative societies across Karnataka.
Administrative and Financial Challenges: The foremost concerns involve administrative hurdles and difficulties in loan recovery. Societies are calling for a strengthened legal and operational framework to support this recovery process. Furthermore, they face severe challenges due to central government taxes. Hosmath emphasized that the state government must immediately engage with the Centre to resolve lingering disputes related to income tax and GST.
Operational Parity and Judicial Reforms: A major demand is for cooperative credit societies to be granted rights similar to nationalised and private banks, specifically for loan classification based on CIBIL scores. On the judicial front, there is a pressing need for a special task force to ensure the speedy disposal of long-pending cases related to the Agricultural Credit and NABARD (ABN) matters.
Technology and Financial Revival
For transparent governance, the federation insists on the mandatory implementation of Common Application Software (CAS) for all cooperative credit societies in the state. To ensure financial health, policies must be introduced to enhance investment and non-interest income, including special schemes designed to boost revenue from sources other than loans.
The crucial role of District Central Cooperative (DCC) Banks and the urgent need for reviving sick credit societies were also underscored. Hosmath stressed that the issues of the cooperative movement transcend politics, as they directly impact the economic security of people in both rural and urban areas of Karnataka.
A Call for Unified Political Support
Dr. Sanjay Hosmath has urged all Members of the Legislative Assembly (MLAs) and ministers, irrespective of their party affiliation, to stand united on this matter. He appealed for them to give the utmost priority to resolving the cooperative sector's problems during the Belagavi session. This collective effort, he believes, is essential for ensuring a secure and prosperous future for the cooperative sector in Karnataka, safeguarding the interests of countless citizens who depend on these institutions.
