Shri P. Sreeramakrishnan, Hon’ble Speaker, Kerala Legislative Assembly,
Shri Ramesh Chennithala, Hon’ble Leader of Opposition
Shri E T Muhammed Basheer, Member of Parliament,
Shri Aryadan Mohammed, Former Minister
Shri Sajith Babu, IAS, Registrar, Co operative Societies
Shri N Gireeshan, DGM, Reserve Bank of India
Shri M.V. Sreedharan Master, Chairman, Ponnani Co operative Urban Bank Ltd
Shri K K Abdul Ghafoor, General Manager, Ponnani Co-operative Urban Bank Ltd
Friends in Media,
Sahodaree Sahodaranmaare,
Ellaavarkkum Ente Namaskaaram,
It gives me great pleasure to address you after inaugurating the new building of the Ponnani Co-operative Urban Bank, which has been serving the people of this area for over three decades.
I am also happy to note that Ponnani is the Constituency of our Speaker, Shri P. Sivaramakrishnan. As a person who has held positions right from his student days, he has all the leadership qualities that help him in performing his role of presiding over the Kerala Assembly, maintaining order during meetings, in interpreting and enforcing rules of business, in protecting the rights of members etc. I have observed him to be pleasant but firm and determined to see that the dignity of the House is always maintained.
Let me begin by complimenting the Board of Directors and staff of this Co-operative Urban bank for taking initiative to construct a spacious three storeyed building so as to modernize the functioning and to offer better service to the customers. What adds to my joy is that my first official visit to Ponnani has something to do with the Co-operative sector. This is because of my longstanding association with the Co-operative sector in Tamil Nadu, my home State.
As we all know, the Co-operative sector is the backbone of the agricultural economy of most of our States. At a time when nationalized banks could not open branches everywhere, our people, especially small farmers and dairy farmers found the Co-operative societies to be a boon.
I understand that Co-operative banking has developed quite well in Kerala and that the movement had started even before Independence, with over a thousand Societies being registered before 1946. Today, we have at least ten thousand societies functioning well and the deposits of
co-operative banks had crossed Rs.67,534 crores in 2016 which was 15.42 percent of the combined deposits of commercial banks and co-operatives in Kerala. The Ponnani Co-operative Urban Bank whose new building has been inaugurated is one of the sixty Urban banks in the
Co-operative sector.
The Co-operative banks and institutions enjoy great faith and trust in the minds of the people, since these institutions were the people's creations. These were also the people's fitting reply to the ruthless money lenders who had fleeced the farmers and the economically weaker sections in the absence of a regulated financing system. It also merits mention that the Land Reforms introduced by the first elected Government of Kerala had given a flexibility to the Co-operative system in Kerala, enabling it to be more creative and people-oriented in its approach.
It is this creative approach that reflects in the sector's readiness to come to the aid of the Government or institutions in distress. The recent example of the
Co-operative sector helping the State Road Transport Corporation to pay pensions is one example of the sector understanding the pulse of the people.
It is perhaps the faith in the Co-operative sector that compels people to believe that it could also be an employment sector for them. I am informed that the
Co-operative banks employ over 40,000 people now. However, it is doubtful if these employees get the recognition and remuneration that the employees of nationalized banks get in society. This calls for a restructuring of the human resources management in the Co-operative sector. This will certainly be essential when the proposed Kerala Bank becomes a reality by next Onam.
It is not only in human resource management that we need changes to happen in the Co-operative sector. In fact, as banking institutions, we need to modernize our activities. I am happy that the Ponnani Co-operative Urban Bank is planning to introduce ATMs and Mobile banking. At present, the Core banking facility and online transactions allowed by the Cooperative banks are not seen to be at par with those in the nationalized and new generation banks. There could be some restrictions now, but efforts are needed to overcome them and to make services up to date.
Though institutions in the Co-operative sector offer many schemes for people, it is doubtful whether the people who subscribe to those schemes are the really deserving beneficiaries. We hear of the Government writing off many loans or debts in the Co-operative institutions, but at the same time, complaints of undeserving people benefiting from such schemes also come up. It is good that the sector has given interest free loans for paddy cultivation and reduced interest during times of natural disaster etc., but a reality check on whether those who get the benefits utilize them correctly will be helpful.
Unlike in other States, the Co-operative sector in Kerala has been active in arresting the price of commodities also.
I had observed that the market intervention done by the Government during festival seasons had been very useful to the ordinary people. Another initiative which could strengthen the people's faith in this sector is the decision to implement the Home Delivery of Social Security Pensions through the District Co-operative Banks [DCBs], Primary Agricultural Credit Societies [PACS] and other Credit
Co-operatives.
Here, I would suggest a strengthening of the
Co-operative sector's communication and interaction with the people. Most of the banks take great interest in deposit mobilization schemes, for which they visit households. But, how much of such interaction is carried out to explain to people, especially the deprived sections, about the schemes for them? We have all seen how the Jan Dhan Yojana increased the number of people in the banking process. Similarly, Kerala's Co-operative sector should ensure that not a single household in a locality remains away from it. Every Co-operative society or bank in a locality should ensure that every family in its locality is enrolled in that institution. This will help improve people's faith in the Co-operative sector.
I once again appreciate the Ponnani Co-operative Urban Bank's efforts in constructing a new building for it. Infrastructure is certainly the most important prerequisite for efficient functioning. I hope this Bank continues to enjoy the people's trust in the years to come.
I compliment the organizers for conducting this function in a befitting manner.
Ellavarkkum Ente Aashamsakal
Nanni
Jai Hind
