Co-Op Banks under RBI

Cabinet committee has promulgated an ordinance to bring around 1500 cooperative banks under the supervision of RBI. This announcement is expected since the scams exposed in the Punjab and Maharashtra Cooperative Bank last year. 

The cooperative banks (State and other) are scheduled banks under RBI Act that should submit Cash Reserve Ratio to RBI but doesn't have supervision by RBI in their CEO appointments, auditing and lending ratio. The purpose of the formation of cooperative societies or banks is to serve a small or rural community by the community itself. These banks were the alternative to other commercial banks that denies access to the downtrodden section of the society.

But these cooperative banks were not functioning as they wanted to. Since there is no auditing and interference by the central bank, corruption and bribery were increased in these banks. Banks instead of proving loans to the needy, they ended providing a large part of its loans to a single party or a small number of people. This cannot be done in other commercial banks since they have RBI guidelines to lend namely priority sector lending, auditing etc. 

Now, the Ordinance is welcome as it brings the appointment of CEOs to the coop banks and audits under the supervision of RBI. Earlier this year RBI has reduced the [lending to capital ratio] for the single borrower and small group to 10% and 25% from 15% and 45%. Also increased the priority sector lending ratio from 40% to 75%. This would solve the problem of corruption, bribery and denial of access to the needy. Also, save the coop banks from financial instability when the large single borrower defaults and save the depositors mainly.

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சமூக நீதி - அரசியல் பிரதிநிதித்துவம்

சுயமரியாதை இயக்க பிரச்சாரமே சமூக மாற்றத்தை ஏற்படுத்த போதுமானது என்று பெரியார் நம்பிக்கொண்டிருந்தபோது ஆட்சி அதிகாரம் மூலமாகத்தான் சமூக மாற்றத்தை உண்டாக்க முடியும் என்று அண்ணா அரசியலில் இறங்கினார். சமூக மாற்றமே (social change) சமூக நீதியை (social equity/ justice) அடைய உதவும். நீதி கட்சி முதல் திராவிட கட்சிகள் வரையிலான சமூக நீதிக்கான பயணத்தில், கல்வி வேலை வாய்ப்புகளில் இட ஒதுக்கீடு, வாழ்வாதார மேம்பாடு என பல திட்டங்கள் பிற்படுத்தப்பட்ட மக்களுக்கு வெகுவாக சென்றடைந்தது. ஆனால் இவை ஒடுக்கப்பட்ட மக்களுக்கும் சென்றடைந்ததா, அவர்களின் வாழ்க்கை தரம் உயர்ந்ததா என்று பார்த்தால் பிற்படுத்தபட்ட மக்களுக்கு கிடைத்த நன்மைகள் ஒடுக்கப்பட்டோருக்கு கடத்தப்படவில்லை என்பது தெளிவாக தெரியும். இதற்கு நிலவுடைமை, சமூக மூலதனம் (social capital, term introduced by CJI D Y Chandrachud) ஆகியவை முக்கிய காரணம். இதை பற்றி S நாராயன் IAS, வாஜ்பாய் ஆட்சியில் Finance Secretary ஆக இருந்தவர் அவரின் புத்தகத்தில் (The Dravidian Years) குறிப்பிட்டுள்ளார். இதன் மூலமாக கல்வி மற்றும் வேலை வாய்ப்புகளில் கிடைக்கும் இட ஒதுக்கீடு மட்டும்

Protectionism

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Due to the nationwide lock-down from March 25, all the economic activities are shut down except for the essential services. Since liquor doesn’t come under essential needs liquor shops have also been closed. Though the pandemic situation is still in persistence, the government has allowed the shops to sell liquor. From then there are so many controversies and debates happening for and against the liquor ban. And the people are also agitating against the opening of liquor shops. So, here we will discuss, whether the country really needs a liquor ban or not, along with other associated aspects. Rights come first Though opening liquor shops during this severe pandemic situation is totally irrational and highly condemnable, I differ in the idea of a complete ban on liquor. The state cannot interfere or coerce its ideologies to the citizens. It is the right of people to choose their food or drink . People who don’t eat beef would raise voice to ban cow slaughter and who don’t drink would

PROGRESSIVE RATIONALIST

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