Markets for Efficiency and Inclusion

Open, integrated, and well-regulated markets for land, labor, and capital and for goods and services are essential for growth, inclusion, and sustainability. We have many sectors were markets are non-existent or incomplete, especially those which are dominated by public provisioning. How do we create or improve markets in all sectors?

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There is a need to revitalize the operations of cooperative banks/ Regional Rural Banks. What steps are required to revitalize the operations of cooperative banks/ RRBs?

Postby chanana.ak@nic.in » Mon Feb 28, 2011 8:23 am

There is a need to revitalize the operations of cooperative banks/ Regional Rural Banks. What steps are required to revitalize the operations of cooperative banks/ RRBs?
chanana.ak@nic.in
 
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Re: There is a need to revitalize the operations of cooperative banks/ Regional Rural Banks. What steps are required to revitalize the operations of cooperative banks/ RRBs?

Postby bizcon.kapadia@gmail.com » Sat Jul 02, 2011 4:50 am

Big Banks are generally interested in catering to medium and large scale units/customers. Scarcity of funds and working capital in Micro and Small enterprises is main cause of their slow growth and higher failure ratio. There should be hand holding of these units till they are strong enough to look after themselves. In this domain, Co-operative banks in some states like Gujarat, Maharastra, Karnataka, Andhra Pradesh etc. have rendered yeoman service by filling this niche area. More encouragement to this sector must be given so that they can build up their capital base and come out more vigorously to render additional financial service to the needy. Income tax on income of co-operative banks like other entities should be withdrawn/rolled back and they must be set free from the shackles of income tax liability. Tax collected from them is meager but it is depriving them of capital/asset building when 30%of their income is simply taken away as Income tax.
RBI should be more liberal in tackling problems facing co-op. banks as they do not have govt. finance/funding in times of need and they have stood the test of time. Unhappy events should also wake up the regulators to guide them proactively, in time as they have every data and information available in various forms.
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