December 25th 2024.
In a recent announcement, the Chief Minister of Odisha, Mohan Charan Majhi, declared that his government would be returning the money to the individuals who had lost their savings when the Urban Cooperative Bank in Bhubaneswar ceased operations in 2015. This decision was made in an effort to restore the trust of the people in the cooperative banking system. During the event, where he also launched 1,542 Multipurpose Primary Agriculture Cooperatives (MPACs), Majhi emphasized the importance of this move and how it would benefit the depositors.
The Urban Cooperative Bank in Bhubaneswar was forced to shut down in 2015 after its license was cancelled by the Reserve Bank of India (RBI). The state government failed to merge it with another cooperative bank, resulting in 13,797 depositors losing a total of Rs 30 crore. Additionally, loans worth Rs 17.82 crore were left unpaid by 1,760 customers. With the introduction of the new MPACs, the total number of cooperatives in the state went up to 4,253, showcasing the government's dedication towards the cooperative sector.
Majhi also mentioned that the government has planned 54 programs under the cooperative sector, including the implementation of model by-laws to diversify Primary Agriculture Cooperatives. He also spoke about strengthening these cooperatives through computerization and providing essential resources such as fertilizers and seeds. The government aims to establish public medicine centers, common service centers, and agricultural service centers to further support the farmers.
The Chief Minister shared that the state government has identified 77 PACs to be developed as model PACs in the first phase. These model PACs will act as a one-stop-shop, providing all necessary services related to agriculture. Majhi believes that the success of these cooperatives is crucial for rural economic development and the government is working towards restoring the trust of the people in them. He also stressed the need for computerization to eliminate corruption and announced that all primary cooperatives will undergo a thorough audit of their accounts.
Majhi proudly stated that more than 90% of the agricultural families in the state are already benefiting from the services provided by PACs. He also acknowledged the role of OMFED in supporting dairy farmers and becoming a backbone for the agricultural sector in the state. During the event, Majhi distributed micro ATM and Rupay cards to members of various cooperative societies, highlighting the government's efforts towards promoting a cashless economy. This progressive step by the Odisha government is a positive sign for the future of cooperative banking in the state.
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