Functioning of Cooperative Banks

Functioning of Cooperative Banks

The Government of India had set a special Task Force in August 2004 under the Chairmanship of Prof. A. Vaidyanathan, to suggest an implementable action plan for reviving the Short Term Cooperative Credit Structure (STCCS). The main recommendations made by the Task Force inter-alia include: 

1. Financial package for STCCS covering accumulated losses and assistance to bring all cooperatives, including PACS to minimum CRAR of 7%. 

2. Technical assistance to cover the cost of training and capacity building to improve the financial, management skills and computerization.

3. Legal and Institutional Reforms in the State Cooperative Societies Act.

As a part of the approved package based on the above recommendations, 25 states have signed the Memorandum of Understanding (MoU), which are covered under the Revival Package (RP).

As per the Annual Policy Monetary Statement of RBI 2012-13 released on 17th April 2012, RBI has announced constituting a Working Group to review the functioning of the STCCS, which will undertake an in-depth analysis of the STCCS and examine various alternative with a view to reducing the cost of credit, including feasibility of setting up of a two-tier STCCS as against the existing three-tier structure. 

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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Payment to Government servants other than salary etc. through e- Payment from 1st April 2012

F. No.1(1)/2011/TA/292 

Ministry of Finance 

Department of Expenditure 

Controller General of Accounts

Dated 31th March 2012

Office Memorandum

Sub:- Payment to Government servants other than salary etc. through e- Payment from 1st April 2012

The Central Government Account (Receipts and Payments) Rules,1983 have been amended, inter alia, to provide for issue of Payment advices to the bank for direct credit by electronic transfer to the specified bank account of the payee. As per the amendments, the Government servants are, permitted to receive their salary by direct credit to their bank accounts through payment advices, at their option Further, 

the amendment also provides that all payments to government servants other than salaries exceeding the limits as specified from time to time, shall be through payment advices

2. In accordance to the above, with effect from 1st April 2012, all Ministries/Departments of the Government of India are directed to make all payments to government servants, other than salary, above Rs, 25,000. by issue of payment advices, including electronically signed payment advices.

3. Further in accordance to the amended rules, with effect from 1st April 2012, all Ministries/Departments of the Government of India are directed to make all payments towards settlement of retirement /terminal benefits such as gratuity, commuted value of pension, encashment of leave salary,CGEGIS, withdrawals from General Provident Fund, etc. by issue of payment advices, including electronically signed payment advices.

4. All Ministries! Departments and Heads of Accounting Organisations are requested to ensure the compliance of above instructions by Pay & Accounts Offices/ Accounts offices and other payment units under their control.

5. Separate orders have been issued in respect of payments to private parties such as Suppliers, contractors, grantee, loanee institutions etc,

(Soma Roy Burman) 

Joint Controller General of Accounts 

source-http://www.cga.nic.in/pdf/pmnttogovtservant.pdf

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Interest Subsidy on Education Loan

Interest Subsidy on Education Loan

Ministry of Human Resource Development has formulated an Interest Subsidy Scheme to provide full interest subsidy during the period of moratorium on educational loans taken by students belonging to economically weaker sections from scheduled banks under the Model Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing any of the approved courses of studies in technical and professional streams from recognized institutions in India.

Students whose parental income is less than Rs. 4.5 lakhs per annum and are enrolled in recognized technical & professional courses, after class twelfth, in India are eligible under the scheme. Educational loans of such students disbursed from 1st April 2009, irrespective of date of sanction are eligible for interest subsidy.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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RBI asks banks to reimburse failed ATM transactions in 7 days

The Reserve Bank on Friday directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder’s complaint or else pay a Rs 100 per day compensation.

"The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to seven working days from the date of receipt of customer complaint," the RBI said in a notification. 

  

Failure to re-credit the amount within seven working days will require the issuing bank to pay a compensation of Rs 100 per day, it said. 

  

Earlier, banks were required to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within 12 days. 

  

The RBI further said that all customers are entitled to receive such compensation for delays only if a claim is lodged with the issuing bank within 30 days of the date of transaction. 

  

The directive shall be come into effect from 1st July, 2011. 

  

The central bank instructed the issuing bank and the acquiring bank to settle failed ATM transaction disputes through the ATM system provider only. 

  

"No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provided is possible," RBI said. 

  

This measure is intended to reduce instances of disputes in payment of compensation between the issuing and acquiring banks, it added.

SOURCE-DDNEWS

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