Govt infuses Rs 366 cr for re-capitalization of three Cooperative Banks in J&K

J&K Cooperative on path of its revival, revamping: Secretary

Excelsior Correspondent
JAMMU, May 30: In a significant development for revamping financial health of Cooperative banks, the Jammu and Kashmir Government has infused Rs 366 crores for re-capitalization of three District Central Cooperative Banks in the Union Territory.
The amount under `Recapitalization Package’ was recently released and transferred to Jammu Central Cooperative Bank, Anantnag Cooperative Bank and Baramulla Central Cooperative.

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This was disclosed by Secretary, J&K Cooperative Department, Yasha Mudgal, during an informal chat with some media persons at the Press Club Jammu on Monday.
“The package was sanctioned in 2018 by the Central Government for revival of Cooperative banks in Jammu and Kashmir but the amount could not be released because of some technical reasons,” said Yasha Mudgal, who was instrumental in getting the package amount released and transferred to the three banks for managing their affairs and attaining the required Capital to Risk Asset Ratio (CRAR).
As per the Banking Regulations Act, these banks were de-licensed by the Reserve Bank of India because their liquidity position was bad enough as also due to their assets erosions as well. Though they are working in the field of Banking, but with certain restrictions imposed by the RBI.
Further informing that there will be the revitalization and rejuvenation of other Cooperative banks also whose financial heath was deteriorated, she disclosed that the Cooperative Department has sought Central package of Rs 238 crore for the same and formal requisition in this regard was already made.
Listing the major initiatives taken by the Cooperative Department for multiple growth of the cooperative institutions in Jammu and Kashmir during the last year, Yasha Mudgal informed that Rs 280 lakh were released for modernization of Super Bazars in J&K UT, which have also been brought on the GeM Portal and are running their business in a professional manner.
She also revealed that one Super Bazar is proposed in each district of Jammu Kashmir Union Territory in the coming years and the Detailed Project Reports for the same are under preparation.
Yasha Mudgal said that during the current financial year, the department has touched a landmark in registrations, adding that in terms of revival of defunct Cooperative Societies, the Department has outperformed itself. “For the first time in 2021-22, the Cooperative Department has registered 64 FPOs under its Acts,” she said.
The Secretary further informed that the Cooperative Department has achieved 100 percent end to end digitization for the first time while a departmental portal has been created benefitting the intending beneficiaries to get the registration done in online mode within two to three months.
“To meet the manpower crisis in the department, for the first time 91 vacancies of Assistant Registrars have been referred by the Public Service Commission while the Government has tied with the NCDC, New Delhi and accordingly under the scheme, Development of Commercial Poultry in J&K, 35 poultry projects so far of various cooperative societies with an estimated cost of Rs 860.92 lakhs have been sanctioned by the NCDC,’ she said.
Replying to a query, she informed that the department was also holding awareness campaigns across the Union Territory to make people know about the Cooperative sector and the schemes and other benefits being provided by the Cooperative Department to make it a more vibrant, profitable and self-reliant wing.
The Secretary Cooperative also informed that that audits of 859 cooperative societies were conducted in 2020-21 and 849 cooperative societies in 2021-22 while elections of around 70 percent societies were got conducted recently.