“ member - driven ” keeping the principle of cooperation in letter and spirit. professionalism should be introduced in staffing and adequate training opportunities should be provided to the employees of cooperatives for skill upgradation. they should frame sound and prudent policies for loans and investments and conduct themselves in the larger interests of the depositors and the general public. cooperatives should overcome their inertia and resistance to change and emerge as technology - driven, well - managed institutions to inspire confidence in the public and secure their survival. thank you for a patient hearing. bis central bankers ’ speeches

the respective state cooperative societies acts bis central bankers ’ speeches that were to precede the recommended one - time capitalization jointly by the central government, the state governments and the stccs of the state itself. 25. twenty - five state governments signed the mou with government of india and nabard to participate in and implement the package. as on december 2012, 21 states had amended the respective state cooperative societies act. an amount of rs. 9, 002 crore was released by nabard as the government of india ’ s share, while the state government released rs. 856 crore as their share for recapitalisation of 53, 202 eligible pacs in 17 states. recapitalisation assistance could not be released in many cases as the states did not complete all the necessary benchmark activities within the stipulated period. licensing of rural cooperative banks 26. the committee on financial sector assessment set up by the government of india in september 2006, under the chairmanship of dr. rakesh mohan, looked into the financial health of all the banks including the cooperative banks and made recommendations for improvement of financial health and systems for attaining and maintaining financial stability. a major recommendation of the committee was to prohibit unlicensed banks from functioning beyond march 2012. 27. as there were a large number of cooperative banks ( 17 out of 31 state cooperative banks and 296 out of 371 district central cooperative banks ) functioning without license, the reserve bank of india relaxed the licensing norms to grant license to these banks. the relaxed norms were i ) capital to risk - weighted assets ratio ( crar ) – minimum 4 %, and ii ) compliance with crr and slr for the last one year ( default on one or two occasions were permitted ). consequent upon relaxation of licensing norms, 50 banks qualified for issue of license reducing the number of unlicensed banks from 73 as on february 29, 2012 to 43 as on march 31, 2012 and further to 23 as on june 30, 2013. recent policy initiatives implementation of core banking solution 28. the reserve bank of india has granted permission to stcbs and ccbs to participate in the payment system and offer rtgs / ecs / neft facilities to their customers / members. since it infrastructure is the prerequisite for offering these services, core banking solution ( cbs ) is being implemented in stcbs and ccbs. several banks have joined the nabard assisted bis central bankers ’ speeches project and made significant progress in implementation of cbs.