Gandhinagar (Gujarat) [India]: Gujarat has successfully steered the pilot of ‘Cooperation Among Cooperatives’ initiative in Banaskantha and Panchmahal districts.
In a landmark decision, the central government headed by Prime Minister Narendra Modi established a dedicated Ministry of Cooperation to strengthen the cooperatives nationwide, affirming the path of ‘Sahkar Se Samridhhi’.
According to a press release, under the successful leadership of Chief Minister Bhupendra Patel, Gujarat has successfully steered the pilot of ‘Cooperation Among Cooperatives’ initiative in Banaskantha and Panchmahal districts.
Notably under this initiative, envisioned by Union Home & Cooperation Minister Amit Shah, over 4 lakh new accounts were opened by cooperative societies and their active members in the District Cooperative Banks of these two districts, resulting in a jump of over Rs. 966 crores in the bank deposits.
In order to enhance banking facilities and financial liquidity at village level, a total of 1736 societies in these districts including prominent Milk Societies affiliated with Milk Unions were also equipped with micro-ATMs and affiliated as Bank Mitra.
Significance of Cooperation Amongst Cooperatives Model
The initiative aims to enhance cooperation among Gujarat’s thousands of cooperative societies by centralising their bank accounts and deposits under the aegis of District and State Cooperative Banks. The initiative consolidates the existing bank accounts of cooperatives and their members operating in various commercial banks and brings them under a centralised District Cooperative Bank/State Cooperative Bank. This helps in consolidating the collective capital of these cooperative societies under one centralised bank, resulting in enhanced deposit pool for loans, increased financial liquidity among cooperatives, addressing their credit needs and ensures that the collective capital of cooperatives comes to the dedicated use of other cooperatives.
In this way, the capital and deposit of one successful cooperative society comes to the use of other societies, benefiting the entire cooperative sector of Gujarat.
Cooperation Among Cooperatives Model to be Emulated Across Gujarat
Minister of Cooperation, Jagdish Vishwakarma, speaking about the significance of these achievements, said, “A strengthened cooperative sector will be a robust pillar in the foundation of a Viksit and Atmanirbhar Gujarat, propelling us towards Prime Minister Shri Narendra Modi’s vision of achieving Viksit Bharat by 2047.
“Thanks to the successful pilot of the initiative, Gujarat government has decided to implement the ‘Cooperation Among Cooperatives’ initiative across all 33 districts of Gujarat. The District Cooperative banks will be able to extend their services on the village level and ensure that the capital and funds of Gujarat cooperatives’ stay within the community and come to the aid of other cooperative societies.
Successful Pilot Run of Cooperation Among Cooperatives
Between June 2023 to January 2024, Gujarat launched the pilot initiative in Banaskantha and Panchmahal districts. During the pilot period, the existing bank accounts held by 1048 Milk Societies affiliated with Milk Unions were consolidated into the District Central Co-operative Banks along with the complete transfer of surplus funds into their new bank accounts.
The two districts saw the opening of over 4.7 lakh new savings accounts in the Cooperative banks enhancing the existing deposits of these banks by a whopping Rs 966 crore.A total of 3.32 lakh RuPay debit cards were also issued to the societies and the active members.
Commission rates have also been established to ensure these societies generate substantial income, incentivizing the effective utilization of micro-ATMs. Mindful of the challenges faced by the members in accessing financial services, over 1631 employees associated with the Cooperative societies were also given a comprehensive training on digital transactions, including micro-ATM operations, cash withdrawals, and deposits.