Reserve Bank of India has put on notice three cooperative banks operating in Jammu and Kashmir for failing to achieve minimum capital and reserve requirements, Minister for Cooperatives Chering Dorjay told the Assembly on Wednesday.
Replying to discussion on the demand of grants for Cooperative Department, Dorjay said the RBI has put 23 Cooperative Bank on notice in different States.
"Of these 23 banks, the notice has also gone to three banks in J&K…this is a problem," said Dorjay. "For bailing them out, we need Rs 313 crores."
He said the Government of India, NABARD and State Government have signed MoU for devising a mechanism to bailout the banks in J&K.
The Minister said though the Cooperative Department has huge potential to generate employment in the state, the Department has not got the due attention over the years. He revealed that of the total 3781 Cooperatives registered in J&K only 988 functional.
"The remaining cooperatives are defunct and their revival is a challenge," said the Minister.
He said there were nine Cooperative Banks operating in J&K with a total of 264 branches and having a deposit of Rs 3127 crores.
The minister said J&K was in dire need of a Cooperative Movement for its prosperity, informing the House that the Government has initiated some measures to revamp the Cooperative Department.
The Minister said that under the Integrated Cooperative Development Project (ICDP), projects have been taken up at a cost of Rs 19.36 crore in Phase-I, while as in the II-phase, two projects for erstwhile Doda and Baramulla districts were approved by National Cooperative Development Corporation (NCDC).
He said that under the scheme Rs 12.33 crores and Rs 16.36 crores would be spent on Poultry Projects in these districts respectively.
The Cooperative Minister said to revamp the cooperative sector and bring the Cooperative Movement back on track, the Cooperative Department has prepared a comprehensive plan.
He said Rs 5.80 crores was being proposed for taking up new works under CAPEX Budget during the current fiscal. Later, the House passed the grants of Cooperative Department for 2016-17, which were moved by the Minister.