the single most important institutions, which touch the life of villagers and rural farmers, most. while there are around 15400 branches of rrbs, there are about 95000 primary agricultural credit societies ( pacs ). besides delivering credit to farmers, pacs also serve as outlets for distribution of agriculture inputs and food and other essential items to the villagers. thus, pacs are in a far better position to further financial inclusion agenda than any other institution. there is, therefore, a compelling need to find ways for strengthening the cooperative movement and making it a well - managed and vibrant medium to serve the credit needs of rural india. 3. when first conceived, pacs were expected to be rural thrift and credit cooperatives, dependent primarily on member savings for meeting the agricultural credit needs of their members. however, subsequently, members stopped seeing these cooperatives as their own, and saw them as channels through which to access credit. they stopped saving with pacs. on their part, barring a few states like kerala, pacs did not make effort to mobilize deposits but act as channel for disbursement of loans by availing refinance. prof. vaidyanathan task force 4. despite serving the people for decades, co - operative credit institutions remained financially weak and operationally inefficient and ineffective. their operations have been reviewed by various committees in the past and recommendations were made for strengthening them. various measures were taken from time to time for improving the operations of the co - operative institutions. however, the recommendations of the prof. vaidyanathan task force and rolling out of revival package by the government of india on the basis of the recommendations are likely to be part of the most important chapter in the history of co - operative credit institutions in the country. implementation of the package including the reforms measures in letter and spirit is the biggest challenge before all stakeholders and same has to be met effectively. 5. as you all are aware, the revival package seeks to : a. provide financial assistance to bring the system to an acceptable level of health ; b. introduce legal and institutional reforms necessary for its democratic, self reliant and efficient functioning ; and c. take measures to improve the quality of management. 6. it is a matter of satisfaction that 25 states have signed the mou and progressed towards implementation of reform agenda. although the time period prescribed by the government for entering into mou has lapsed, the remaining states may approach the government in this

irma rosenberg : monetary policy and financial stability – the riksbank's two main tasks speech by ms irma rosenberg, first deputy governor of the sveriges riksbank, at statistics sweden, stockholm. 2 october 2008. * * * many countries are currently in the midst of a financial crisis that has repercussions throughout the global financial system. headlines referring to problems in large us banks, to rising risk premiums, poorly functioning markets and other consequences around the world have been prominently featured on the first pages of many newspapers. sweden has so far been spared the worst. but now the financial markets here are also clearly affected by the uncertainty and lack of confidence, which thus also affects the swedish banks and other financial agents. the riksbank is working intensively on dealing with these events right now, like most other central banks. the riksbank ’ s task is to safeguard both price stability and financial stability. i am going to talk today about current monetary policy and the deliberations at our most recent monetary policy meeting in september. but the recent drama in the financial markets gives me reason to devote some time to explaining what our task of safeguarding financial stability concerns and to our assessment of the current situation. two tasks – monetary policy and financial stability some of the questions that have been the focus of attention are what the riksbank and other central banks can and should do about what is happening in the financial markets right now. it is not surprising that these questions arise. but if they are to be discussed, it is important to separate the two tasks the riksdag ( the swedish parliament ) has given us – monetary policy and financial stability. this may not be so easy, as the areas in many ways affect one another. however, i shall try to make things a little clearer. two different tasks … what is happening right now is important, both with regard to financial stability and monetary policy. the financial turbulence has also been included in our analyses of both areas, ever since the problems connected to the mortgage market in the united states became apparent last summer. however the perspectives are different. the stability perspective concerns how the banks, the payment system and the financial system in general are affected by the financial crisis. the monetary policy perspective concerns how inflation and developments in production and employment may be affected. … which are in many ways linked as i recently mentioned, our two fields of activity are closely linked. the financial turbulence that has spread around the world to a large