NATIONAL FEDERATION OF STATE COOPERATIVE ...nafscob.org/NOTICE_files/B-4(126).doc · Web viewAsian Development Bank (US $1 billion), kfW (Euro 140 million and World Bank (US $600

NATIONAL FEDERATION OF STATE COOPERATIVE BANKS LTD.

MEETING OF THE BOARD OF DIRECTORS20 SEPTEMBER 2008 AT BHUBANESHWAR

AGENDA ITEMS

1. To confirm the Proceedings of the meeting of the Board of Directors held at New Delhi on 28 April 2008.

2. To note the action taken on the resolutions and decisions of the meeting of the Board of Directors held on 28 April 2008.

3. To note the Annual Policy Statement for the year 2008-09 as announced by Governor, Reserve Bank of India on 29 April 2008.

4. To note the First Quarter Review of the Annual Statement on Monetary Policy for the year 2008-09.

5. To note the upward revision in the Cash Reserve Ratio (CRR).

6. To assess the status of implementation of the Revised Revival Package of short term cooperative credit structure, as recommend by the Task Force on Revitalisation of Cooperative Credit Institutions set up under the Chairmanship of Prof. A. Vaidyanathan.

7. To note the guidelines and also the status on ‘Agricultural Debt Waiver and Debt Relief Scheme 2008’ and consider the implications on cooperative credit institutions.

8. To note and consider the ‘Action Plan to address Agrarian Distress in India- submitted by independent Expert Panel of NABARD – SDC’ to NABARD.

9. To note the NABARD Circular on ‘Liquidity support to SCBs under section 38 (vii) of NABARD Act, 1981 to tide over the temporary liquidity crunch faced by Cooperative Banks’.

10. To note the sanction of short term credit limits to SCBs for financing Seasonal Agricultural Operations (SAO) against pledge of Government securities.

11. To note the NABARD Policy for the year 2008-09 on Eligibility Criteria for drawal of refinance from NABARD under Schematic Lending.

12. To note the revision in rate of interest on refinance from NABARD.

13. To note the provision of term loans by banks for financing of Handloom Weaver Groups (HWGs).

14. To note the NABARD Policy for the year 2008-09 with regard to Short Term Credit Limits to SCBs/DCCBs for financing the Working Capital Requirements of Primary/Apex/Regional Weavers’ Cooperative Societies.

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15. To note and consider the draft Report of the High Level Committee on Financial Package for Handloom Sector appointed by Ministry of Textiles, Government of India.

16. To note the revision of exposure norms and Monitoring & Reporting procedures under Credit Monitoring Arrangements (CMA).

17. To note the customer charges for use of ATMs for cash withdrawal and balance enquiry.

18. To note the amended version of the guidelines prescribed by RBI for ensuring ‘Fit and Proper Criteria’ for Directors on Boards and CEOs of Rural Cooperative Banks.

19. To note the outcome of the first meeting of the Standing Committee on short term cooperative credit and banking institutions convened by NAFSCOB on 28 May 2008 at Kolkata.

20. To note the outcome of the first meeting of the Working Group on Code of Standards and Fair Practices for SCBs and DCCBs convened by NAFSCOB on 28 May 2008 at Kolkata.

21. To note the consultation with DCCBs in Orissa on the issue of NAFSCOB membership to DCCBs.

22. To note and consider the request of Indian Institute of Banking & Finance to continue with/enrol as institutional members.

23. To consider venue, date and time to hold next meeting of the Board of Directors in December 2008.

24. Any other item with the permission of the Chair.

PART - II

1. To note the list of State Cooperative Banks which are yet to remit the Annual Subscription/Arrears of Annual Subscription to NAFSCOB.

2. To note the list of State Cooperative Banks which are either fully or partially yet to remit the Additional Subscription towards the Office premises and Guest House of NAFSCOB.

3. To note the status of Annual Subscription/Arrears of Annual Subscription and other dues payable by the member banks to NAFSCOB under AIMAS.

4. To note the status of contribution/arrears of contribution towards Federation’s Publications and other dues.

5. To note and consider the suggested models for seeking contributions from member State Cooperative Banks to purchase premises in Mumbai to house Guest House/Visiting Officers Flat for NAFSCOB.

6. To note and consider the appointments in pursuance of the decision by Search Committee of NAFSCOB.

7. To ratify the action taken by the Chairman, NAFSCOB in appointing a Personal Secretary to Chairman, NAFSCOB to assist him at New Delhi.

8. To ratify the decision of Executive Committee in nominating Dr. Bijender Singh, Chairman, NAFSCOB for participation in the Study Mission to Israel & Egypt from 16-24 August 2008 organised by NCUI and also the expenditure incurred.

9. To consider nomination to 8th Meeting of ICA-AP Regional Assembly and 5th Asia-Pacific Cooperative Forum and other related events to be held from 1st to 6th

December 2008 at Hanoi, Vietnam.

10. To consider the proposal to organise an international study tour to Australia and New Zeland under IEEF during January – March 2009.

11. To consider and recommend to the General Body the Auditor’s Report and Statement of Accounts of the Federation for the year 2007-08 and approve Compliance Report on the Observations made by the Auditors.

12. To consider and adopt the 45th Annual Report of the Federation for the year 2007-08 and recommend to the General Body for adoption.

13. To consider and approve the programme of activities for the year 2008-09.

14. To consider and approve the Annual Budget of Income and Expenditure of the Federation for the year 2008-09.

15. Any other item with the permission of the Chair.

16. To conduct election for the vacant position of Vice-Chairman, NAFSCOB representing Northern Zone.NATIONAL FEDERATION OF STATE COOPERATIVE BANKS LTD.

MUMBAI


NOTES ON AGENDA

Item No.1 To confirm the Proceedings of the meeting of the Board of Directors held at New Delhi on 28 April 2008.

The Proceedings of the meeting of the Board of Directors of the Federation held at New Delhi on 28 April 2008 have been circulated vide our letter No. NAFSCOB/B-4(125)/2008-09/ 132 dated 19-06-2008, which may kindly be confirmed.

Item No.2 To note the action taken on the resolutions and decisions of the meeting of the Board of Directors held on 28 April 2008.

Action has been initiated on all the resolutions of the meeting of the Board of Directors held at New Delhi on 28 April 2008. Action taken on some of the important resolutions is given in Annexure to this note, which may kindly be noted.

Item No.3 To note the Annual Policy Statement for the year 2008-09 as announced by Governor, Reserve Bank of India on 29 April 2008.

As the members of the Board are kindly aware, Governor, RBI announced the Annual Policy Statement for the year 2008-09 on 29 April 2008. The Annual Policy Statement, as usual, consists of two parts: Part I. Annual Statement on Monetary Policy for the year 2008-09 and Part II. Annual Statement on Developmental and Regulatory Policies for the year 2008-09. While the highlights of the Annual Policy Statement for the year 2008-09 are given as Annexure to this item, the most important highlights of the Annual Policy Statement are given below for the kind perusal of the members of the Board:

Bank Rate kept unchanged at 6.0 per cent.

Reverse Repo Rate and Repo Rate kept unchanged at 6.00 per cent and 7.75 per cent respectively.

Scheduled Banks have been required to maintain Cash Reserve Ratio (CRR) of 8.25 per cent with effect from the fortnight beginning May 24, 2008. As the members are aware, CRR was 7.75 per cent as on 26-04-2008, which was revised to 8.00 pr cent with effect from 10-05-2008.

GDP growth projection for 2008-09 in the range of 8.0 – 8.5 per cent.

Loans granted to RRBs for on-lending to agriculture and allied activities to be classified as indirect finance to agriculture.

The shortfall in lending to weaker sections would be taken into account for contribution to RIDF with effect from April 2009.

RRBs allowed to sell loan assets to other banks in excess of their prescribed priority sector exposure.

The limit of bank loans to individuals for housing having lower risk weight of 50 per cent enhanced from Rs.20 lakh to Rs.30 lakh.

A concept paper on Financial Literacy and Counselling Centres has been prepared and placed on the Reserve Bank’s website on April 3, 2008 for public feedback.

A High Level Committee to review the Lead Bank Scheme expected to submit its report by July 2008.

In order to promote an incentive system for greater flow and efficient allocation of credit, an Internal Working Group to be set up to look at issues relating to credit delivery, credit pricing and credit culture in a holistic manner.

The Reserve Bank has constituted an Internal Technical Group to propose criteria for the applicability of Basel norms to State Cooperative Banks/District Central Cooperative Banks/Regional Rural Banks that is expected to submit its report by June 30, 2008.

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The Reserve Bank has extended the waiver of processing charges for ECS/EFT/NEFT upto March 31, 2009.

Therefore, the members of the Board are requested kindly to note highlights of the Annual Policy Statement for the year 2008-09 as announced by Governor, Reserve Bank of India on 29 April 2008.

Item No.4 To note the First Quarter Review of the Annual Statement on Monetary Policy for the year 2008-09.

As the members of the Board are kindly aware, Governor, Reserve Bank of India presented the First Quarter Review of the Annual Statement on Monetary Policy for the year 2008-09 on July 29, 2008. While the highlights of the details of the highlights have been presented as Annexure to this item, the most important highlights are given below for the kind perusal of the members of the Board:

Bank Rate has been kept unchanged at 6.00 per cent.

Reverse Repo Rate under LAF kept unchanged at 6.00 per cent.

Repo Rate has been increased by 50 basis points from 8.5 per cent to 9.00 per cent.

Cash Reserve Ratio has been increased by 25 basis points to 9.0 per cent with effect from the fortnight beginning August 30, 2008.

GDP growth projection for 2008-09 revised from the range of 8.0-8.5 per cent to around 8.0 per cent, baring domestic or external shocks.

The Reserve Bank will continue with its policy of active demand management of liquidity through appropriate use of the CRR stipulations and open market operations including the MSS and LAF, using all the policy instruments at its disposal flexibly as and when the situation warrants.

While the policy actions would aim to bring down the current intolerable level of inflation to a tolerable level of below 5.0 per cent as soon as possible and around 3.0 per cent over the medium term, at this juncture a realistic policy endeavour would be to bring down inflation from the current level of about 11.0-12.0 per cent to a level close to 7.0 per cent by March 31, 2009.

Therefore, the members of the Board are requested kindly to note the First Quarter Review of the Annual Statement on Monetary Policy for the year 2008-09 as presented by Governor, RBI on July 29, 2008

Item No.5 To note the upward revision in the Cash Reserve Ratio (CRR).

Reserve Bank of India as one of anti-inflationary measures has once again made upward revision of Cash Reserve Ratio (CRR) by 50 basis points from 8.25 per cent to 8.75 per cent in two stages as given below:

Effective date (i.e. the CRR on net demand and Fortnight beginning from time liabilities (Per cent)

July 5, 2008 8.50 July 19, 2008 8.75 August 30, 2008-08-18 9.00

Subsequently, CRR has been revised to 9.00 per cent w.e.f. 30 August 2008. Since April 14, 2007, CRR has been increased nine times i.e. from 6.25 per cent to 9.00 per cent. A copy of the statement indicating the revision in the CRR since July 1935 is given as Annexure-I. Further, a copy of the circulars dated June 26, 2008 and July 30, 2008 issued by RBI to all Scheduled State Cooperative Banks along with its notification is given as Annexure-II & III for the kind perusal of the members of the Board.

Therefore, the members of the Board may kindly note the upward revision in the CRR and assess the impact/implications of such a revision on flow of agricultural credit.

Item No.6 To assess the status of implementation of the Revised Revival Package of Short Term Cooperative Credit Structure, as recommend by the Task Force on Revitalisation of Cooperative Credit Institutions set up

under the Chairmanship of Prof. A. Vaidyanathan.

The members of the Board in their earlier meetings held on 21 December 2005 at Jaipur, 28 June 2006 at Mumbai, 26 September 2006 at Ahmedabad, 05 January 2007 at Mumbai, 27 April 2007 at Surajkund, Faridabad, 27 July 2007 at New Delhi, 27 November 2007 at New Delhi, 26 February 2008 at Bangalore and 28 April 2008 at New Delhi reviewed the status of implementation of the Revised Revival Package for revitalisation of Cooperative Credit Institutions (CCIs). It has been also noted that NABARD has been designated as the implementing agency for implementing the revival package in all the States. A separate Department for Cooperative Revival and Reforms (DCRR) has been constituted within NABARD for this purpose. It has been reported that NABARD has been providing dedicated manpower at the national, state and district levels for implementing this package. In pursuance of the decision taken by the Board of Directors, a representation has been made to the Ministry of Finance, Chairman of National Implementing and Monitoring Committee (NIMC), RBI and NABARD to address appropriately the following:

i) To appreciate the reasons for slow pace of implementation of the Revised Revival Package for the short term cooperative credit structure, which includes non-acceptance of the Package by the States.

ii) To re-look into the contents/provisions incorporated in the MOU.

iii) To re-consider the specific restrictive provisions and conditionalities stipulated by RBI in the ‘Fit and Proper’ criteria for Directors on the Boards and CEOs of the banks which would have discouraged the majority of States from accepting and signing of MOU.

iv) To ensure the representation to the Cooperators more particularly to NAFSCOB on the composition of NIMC.

Review of Status as on 10-07-2008:

The following update has been presented to the members of the Board of NAFSCOB for appropriate appreciation of the issues involved in implementation of the Revised Revival Package of STCCS.

Six meetings of the National Implementing and Monitoring Committee (NIMC) appears to have been taken place on 30 May 2006, 07 September 2006, 19 January 2007, 26 March 2007, August 01, 2007 and 13 February 2008. (NAFSCOB is neither a member of NIMC nor an invitee to the meetings of NIMC.)

The NIMC not only monitors the implementation of the Package regularly but also takes necessary decision on policy and operational matters.

The programme implementation is guided and monitored within each state by the State Level Implementing and Monitoring Committee (SLIC) and by the DCCB Level Implementing and Monitoring Committee (DLIC). The concerned Regional Office

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NABARD supports the SLIC where as DLIC is supported by DCCB level support team (DLST) comprising officers from NABARD, DCCB and Cooperation department.

It has been reported that a State Level Task Force is being set up in each State to periodically review issues of supervisory and regulatory concerns in respect of SCB and CCBs.

A common draft of the Memorandum of Understanding (MOU) was finalised by the NIMC separately for both three tier cooperative credit structure and two tier cooperative credit structure.

It has been reported that a number of States extended ‘in principle’ acceptance to the Revised Revival Package as recommended by the Task Force and accepted by Government of India. 25 States reported to have been executed the MOUs with Government of India and NABARD. They are Andhra Pradesh (29 August 2006), Bihar (15 March 2007), Gujarat (21-12-2006), Haryana (20 February 2007), Madhya Pradesh (07 November 2006), Maharashtra (13 November 2006), Orissa (16 November 2006), Rajasthan (14 November 2006), Uttarakhand (30 November 2006), Uttar Pradesh (18 December 2006), Arunachal Pradesh (04 May 2007), West Bengal (21 June 2007) and Chhattisgarh (21-09-2007), Tamil Nadu (03 January 2008), Nagaland (03 January 2008), Tripura ( 21-01-2008) , Punjab (29-01-2008), Karnataka (25-03-2008), Jammu & Kashmir (07-04-2008), Meghalaya (15-04-2008), Jharkhand (12-05-2008), Assam (26-05-2008), Mizoram (27-06-2008), Manipur (30-06-2008) and Sikkim (01-07-2008).

Cooperative Reformsi. Acts Amended: Eight States, viz., Andhra Pradesh, Bihar, Gujarat, Haryana, Madhya

Pradesh, Maharashtra, Orissa and Uttar Pradesh have amended Cooperative Societies Act through the Legislative Process.

ii. Proposed amendments vetted/being vetted by NABARD: Arunachal Pradesh, Chhattisgarh, Karnataka, Meghalaya, Punjab, Rajasthan, Tamil Nadu, Uttarakhand and West Bengal.

Special Audits: i. Guidelines and formats were circulated to all participating States and

over 1,180 master-trainers trained by NABARD on these guidelines. These master trainers trained field level departmental auditors.

ii. Special Audit has been taken up in 61,936 PACS and fully completed in Andhra Pradesh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Orissa and is in progress in the other implementing States, which have signed MoU before January 2008. Training programmes are being conducted for starting special audit in States which have signed MoU after April 2008.

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Status of special audit of PACS

State CCBs in the State

PACS affiliated to

CCBs / branches of

SCB

Spl audit started in

PACS

Completed in PACS

Vetted by DLICs

Vetted by SLIC

Andhra Pr. 22 2,738 2,705 2,705 22 22

Arunachal Pr.

1 33 32 32 0 0

Bihar 22 5,965 2,013 444 2 2

Chhattisgarh 6 1,333 1,333 1,333 1 0

Gujarat 18 7,699 7,176 7,176 18 18

Haryana 19 @ 2,441 2,390 586 19 19

Madhya Pradesh

38 4,528 4,514 4,490 38 38

Maharashtra 31 20,914 20,805 20,791 30 30

Orissa 17 2,732 2,723 2602 17 17

Rajasthan 28 5,259 5,153 5,153 28 28

Tripura 1 # 270 56 0 0 0

Uttarakhand 10 753 729 729 10 0

Uttar Pr. 50 7,251 7,032 6,679 50 50

West Bengal 17 ** 7,533 5,275 5,275 17 0

Total : 16 280 69,449 61,936 57,995 252 224 @ The 2,441 PACS in 2004 were reorganised into 586 in 2006 # includes PACS ceded to Commercial Banks and RRBs ** Regular Audit completed only in 5310 PACS out of which special audit completed in 5275 PACS

Special audit of CCBs:

Guidelines and formats for Special Audit of CCBs have been circulated along with FAQs on the subject. Special Audit of CCBs has been completed in Haryana, Rajasgthan and Orissa and is in progress in Andhra Pradesh, Maharashtra, Uttarakhand and West Bengal.

Release of Capitalisation

An amount of Rs.3,347.88 crores has been released by NABARD as GoI share for recapitalisation of PACS in seven States as under:

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(Rs. Crore)State

Total Recap. Asst.

GoI share released State Govt. share released

CCS share

Andhra Pradesh 1,399.42 1,101.15 170.93 127.34

Gujarat 144.19 121.58 10.13 12.48

Haryana 482.95 432.04 20.32 30.59

Madhya Pradesh 652.79 561.59 38.44 52.76

Maharashtra 671.69 510.70 16.74 144.25

Orissa 337.89 279.97 36.84 21.08

Uttar Pradesh 581.63 340.85 44.12 196.66

Total 4,270.56 3,347.88 337.52 585.16

HRD Training

State Level Nodal Agencies have been identified in all implementing States except NER States and Chhattisgarh. Training has been imparted to 209 Master Trainers from 11 States. These master trainers have trained 1,297 District Level Trainers to conduct field level Phase I training programmes for PACS in 2 modules for PACS Staff & Board Members. Phase I programme for PACS Secretaries focuses on the role of PACS in post-reform scenario with specific thrust on resource mobilization

including deposits, various loan products, accounting and reporting systems, roles and responsibilities under the liberalized scenario. The programme for Board Members focuses on the importance and implications of the reform process and self-sustenance through improved governance.

So far, 48,165 PACS Secretaries, 59,836 elected members of PACS and 457 CCB staff have been trained in eleven States viz. Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Uttar Pradesh and West Bengal.

Further, two training modules have been designed under Phase II:

* for auditors of the Audit Department and Supervisors and Inspectors of CCBs on Common Accounting Systems (CAS), and

* the second phase of training for PACS Secretaries focusing on CAS, business development and diversification and best practices in management.

Common Accounting System and MIS for PACS

Common Accounting System for PACS has been circulated to the RCS of implementing states. RCS of 14 States have advised PACS to adopt the Common accounting system on the lines suggested by NABARD and an appropriate Manual on Common Accounting System has been issued for guidance of the STCCS.

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A standardised set of MIS for PACS has been designed and circulated among RCS of implementing states to aid decision making at PACS and at all other levels including higher financing agencies, regulators and other agencies. A Handbook on MIS has also been issued.

A trial run of the training module on operationalisation of CAS for Cooperative Auditors, Inspectors and Supervisors has been held at Jaipur and a Trainers’ Training Programmes on introduction and stabilisation of CAS were held at Bhubaneshwar and Chandigarh. Two back-to-back training programmes on CAS were also conducted for NAABRD officers and Faculty Members at NBSC, Lucknow.

Computerisation

Guidelines on computerisation of CAS and MIS for PACS was issued in two separate modules: (i) development, procurement & deployment of software, and (ii) procurement and installation of hardware.

Tendering process has been completed in Rajasthan for software development. Technical bids for software development have been scrutinised in Haryana.

Expenditure incurred under the Revival Package

An expenditure of Rs.55.24 crores has been incurred towards Special Audits, Technical Assistance and implementation costs.

Monitoring

Progress in implementation is reviewed by NIMC, SLICs and DLICs. So far six meetings of the NIMC have been held.

Union Finance Minister reviewed the progress at two meetings of Finance and Cooperation Ministers of all States on 10 October 2007 and 29 January 2008 at New Delhi.

At NABARD level, review meetings of ROs of implementing States are held periodically. The last meeting was held on 15-16 May 2008.

Progress in implementation is reported on monthly basis to GoI.

State Level Task Forces (SLTF) has been set up to review regulatory issues concerning cooperative banks.

Support from Multi-lateral Agencies

Asian Development Bank (US $1 billion), kfW (Euro 140 million and World Bank (US $600 million) have signed agreements with GoI.

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A Supervisory Mission from World Bank visited the States of Haryana and Orissa in the last week of May 2008 to study the impact of the implementation of the Revival Package. The World Bank team briefed the Top Management of NABARD on the findings on 03 June 2008.

Source: www.nabard.org

Therefore, the members of the Board of NAFSCOB are requested kindly to peruse the status of implementation of the Revised Revival Package.

Item No.7 To note the guidelines and also the status on ‘Agricultural Debt Waiver and Debt Relief Scheme 2008’ and consider the implications on cooperative credit institutions.

As the members of the Board are kindly aware, the Agricultural Debt Waiver and Debt Relief Scheme (ADWADRS) was announced on 29-02-2008 in the Union Budget for the year 2008-09 for farmers. The Union Cabinet gave its approval for the guidelines for implementation of the above Scheme on 23-05-2008. A copy of the text of the guidelines on Agricultural Debt Waiver and Debt Relief Scheme 2008 announced by the Union Finance Minister is given as Annexure-I for the kind perusal of the members of the Board. This Scheme is claimed to be most ambitious Debt Waiver and Debt Relief Scheme ever undertaken by any Government in India in terms of its scope, coverage and the financial costs. The ADWADRS will cover direct agricultural loans extended to small and marginal farmers – estimated to be 3.69 crores and other farmers – estimated to be around 59.75 lakhs. While the small and marginal farmers are eligible for Debt Waiver, other farmers are eligible for Debt Relief under the Scheme. In the case of other farmers, there will be an One Time Settlement (OTS) Scheme under which the farmer will be given a rebate of 25 per cent of the eligible amount subject to the condition that the farmer pays the balance of 75 per cent of the ‘eligible amount’ provided that in the case of revenue districts they will be given OTS rebate of 25 per cent of the ‘eligible amount’ or Rs.20,000/- whichever is higher. In the case of small and marginal farmers, the entire eligible amount shall be waived. The cost of the scheme is likely to be in the order of about an unaudited sum of Rs.71,680 crores. The Scheme will be implemented by scheduled commercial banks, regional rural banks and cooperative credit institutions (including urban cooperative banks) and local area banks.

The Standing Committee on short term cooperative credit and banking institutions constituted by the Board of Directors of NAFSCOB in their meeting held on 28 April 2008, critically analysed the issues involved in the above Scheme and related guidelines. The following suggestions have been extended by the Standing Committee, which has been forwarded to the Union Finance Minister, Union Agriculture Minister, Governor RBI and Chairman, NABARD for appropriate consideration at the earliest:

1. The Agricultural Debt Waiver and Debt Relief Scheme (ADWADRS) deliberately

with no justification sought to exclude from the Scheme any type of loans disbursed by a lending institution prior to March 1997. Infact, there was no indication in the announcement of the Hon’ble Union Finance Minister in his Budget 2008-09 on 29-02-2008 and his subsequent elaborate statement before Press on 23-05-2008 also did not give any element of scope for such an exclusion of the loans from the scheme disbursed by the lending institutions prior to March 1997. Infact, there do not appear to be any rationality in excluding such loan from the Scheme. The farmers, who have failed to repay their loans for such a longer period deserve more than the other category of farmers. Therefore, it becomes imperative to remove the restrictive clause of excluding the loans disbursed by a lending institution prior to March 31, 1997 from the above Scheme.

2. The guideline that “the amount of interest that a lending institution may claim as reimbursement from the Central Government under this Scheme shall not, in any case, exceed the principal amount of the loan.” is certainly unfair to the lending

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institutions mostly to the cooperative credit institutions which have been instructed to finance short term credit at 7% without providing adequate interest subvention. The interest subvention provided by Government of India to cooperatives is a meager 2% as against their requirement of 4.5% per annum. Therefore, the cooperative credit institutions may be allowed to claim at least the applicable rate of interest as reimbursement instead of limiting them and linking to the principal amount of the loan with a view to allow them to be viable.

3. The guideline of the Scheme include that the lending institution shall not charge any interest on the “eligible amount” for any period after 29-02-2008 in case of debt waiver of small and marginal farmers. However, in the case of an “other farmer” who defaults in repaying his share of the eligible amount on or before June 30, 2009 and becomes ineligible for OTS relief, the bank may charge interest for the period after June 30, 2009. This again create confusion and do not appear to have any justifiable reason for differentiating between the treatment of interest to be charged in the case of debt waiver and in case of debt relief. It is therefore suggested to allow interest to be charged on the eligible amount for a period from 01-03-2008 to 30-06-2009 in case of debt relief provided for small and marginal farmers. Failure to allow the banks to charge interest on or after 01-03-2008 amounts to loss of huge amounts on account of interest receivable from the borrower farmers for the period from 01-03-2008 to the actual date of reimbursement of the claim of the amount to be provided by Government of India.

4. Loans are normally restructured or rescheduled when the borrower farmers are not able to repay in time and Government of India/NABARD has allowed them time to repay. Infact, these loans are otherwise overdue loans and having rescheduled it, bank should not be deprived of claims treating it as non-overdue if the revised instalments are not overdue.

5. According to the explanation given in the guideline that “In the case of a farmer

who has obtained investment credit for allied activities where the principal loan amount does not exceed Rs.50,000, he would be classified as “small and marginal farmer” and, where the principal amount exceeds Rs.50,000, he would be classified as “other farmer”, irrespective in both cases of the size of the land holding, if any. This explanation is not in tune with the definition given for small and marginal farmers and as a result this will create confusion and calls for an appropriate clarification.

6. Since ADWADRS is mainly aimed at bringing a large number of small and marginal farmer beneficiaries into the Scheme, it is suggested to restrain from treating production credit and investment credit separately in the case of small and marginal farmers.

7. The members of the Standing Committee of NAFSCOB are of the opinion that according to the accounting practice, the recovery should be first appropriated against interest due and then against principal amount. Therefore, when the loan becomes overdue the interest on the entire outstanding is pending. As per the above scheme, the interest only on the instalments overdue is to be considered for debt waiver and debt relief. This appears to be inadequate and moreover unreasonable. Therefore, interest on entire outstanding may also be allowed to be considered under the Scheme.

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8. While there is a clarity as far as the eligible amount for ‘other farmers’ is concerned, there do not appear to be clarity on the eligible amount of debt waiver for small and marginal farmers. According to the Scheme, the entire loan availed by small and marginal farmers is eligible for debt waiver. Therefore, there is a need for issuing written clarification on the eligible amount for small and marginal farmers if there is any conditionality other than what has been mentioned in guideline 4.1 (a & b).

9. The guidelines of ADWADRS do not elaborate on the procedural formalities. Further, the guidelines also do not elaborate or clarify on the issues with regard to NPA treatment of the receivables from the Government of India under the above Scheme. Therefore, there is a need for issuance of guidelines relating to application of prudential norms more particularly asset classification, provisioning and also treatment of NPA and norms for risk management as a result of the implementation of the above Scheme.

10. While the cooperative banks will be willing to implement the above Scheme (irrespective of the long term adverse implications of the Scheme on the recovery environment), cooperative banks are urgently required at least immediate advance payment of 50% anticipated claim, which may kindly be considered and released on or before June 30, 2008 or on the date of issuance of ‘Debt Waiver or Debt Relief Certificate’, whichever is later. 25 per cent of the estimated amount may kindly

released within one month of submission of the claims and balance after receipt of audited statement.

11. Cooperative banks will face severe resource crunch as a result of the huge demand that will be accrued in pursuance of the implementation of the Scheme and therefore appropriate arrangements will have to be ensured to provide interest free 100% refinance to meet the requirements arising out of the present situation.

Subsequently, Union Agriculture Minister convened a meeting of the Chairmen, Chief Executives and representatives of the Cooperative Banks, their National Federations, Ministry of Finance, Government of India and NABARD on 23-06-2008 to discuss the issues arising out of the implementation of the Agricultural Debt Waiver and Debt Relief Scheme 2008, such as exclusion of the loans issued by the financial institutions on or before March 31, 1997 from the above scheme, need for liquidity support at an affordable rate of interest, losses arising out of the non consideration of the interest claims, need for expediting the time frame for reimbursement of the amount worked out under the above Scheme, etc., in which the following attended:

1. Dr. Bijender Singh MLA, Chairman, NAFSCOB2. Shri Vasanta Nageswara Rao, President, Andhra Pradesh SCB3. Shri Samir Ghosh, Chairman, West Bengal SCB4. Shri Jagneswar, President, Orissa SCB5. Shri Satyendra Narain Singh, Chairman, Bihar SCB6. Shri Manikrao M. Patil, Chairman, Maharashtra SCB7. Shri D.M. Mohol, M.D., Maharashtra SCB8. Shri R.N. Dash IAS, M.D., Orissa SCB9. Shri P.S. Sidhu, M.D., Punjab SCB10. Shri B. Subrahmanyam, Managing Director, NAFSCOB

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Shri Amitab Verma, Joint Secretary (Banking), Ministry of Finance, Government of India and Shri U.C. Sarangi, Chairman, NABARD also attended the meeting. Union Agriculture Minister assured in the meeting that he will take up the issues with the Ministry of Finance, Government of India to address the implications arising out of the implementation of the above Scheme. Subsequent to the above meeting, NAFSCOB has also addressed a letter dated 24-06-2008 to Director (Credit), Government of India, Ministry of Agriculture incorporating some of the important suggestions extended by NAFSCOB during the above meeting for appropriate consideration. A copy of our above said letter is given as Annexure-II for the kind perusal of the members of the Board.

NAFSCOB advised all the member State Cooperative Banks vide letter dated 03-07-2008 to furnish us the information such as Small & Marginal Farmers and others, amount crystallised for waiver relief etc. Majority of the SCBs have indicated the details. Meanwhile, NAFSCOB has been able to obtain the statement indicating the amount of reimbursable by Government of India and the amount to be borne by banks (as on 07 August 2008), which is given as Annexure-III.

Therefore, the members of the Board are requested kindly to note the status pertaining to the implementation of the Agricultural Debt Waiver and Debt Relief Scheme 2008 and also review the status of reimbursement of the amount to cooperative banks towards Debt

Waiver and Relief and the liquidity support provided to ensure fresh finance to small & marginal farmers and other farmers.

Item No.8 To note and consider the ‘Action Plan to address Agrarian Distress in India- submitted by independent Expert Panel of NABARD-SDC’ to NABARD.

Members of the Board are requested kindly to recall that the Executive Summary of the Report by the Independent Expert Panel on Action Plan to Address Agrarian Distress in India has been circulated to all the member State Cooperative Banks vide NAFSCOB letter No. NAFSCOB/D-36/2008-09/188 dated 08-07-2008. While a copy of the same is given Annexure-I for the kind perusal of the members of the Board, the full text of the Report of the Independent Expert Panel is given as Annexure-II for the kind perusal. It may kindly be noted that the Independent Expert Panel to look into the Agrarian Distress of Affected Districts in India was appointed by the National Bank for Agriculture and Rural Development (NABARD) with financial support of NABARD’s Rural Innovation Fund and of the Swiss Agency for Development and Cooperation. The overall objective of the Expert Panel is to prepare a time bound implementable action plan, with the view to address the problems and constraints related to agrarian distress in the affected districts in India. The action plan, inter alia, was expected to address the following issues and concerns specifically and contain:

A brief overview and analysis of the constraints and problems currently faced by the farm sector in India.

Identification of the broad contours of the long term strategies, based on a systemic approach, to put the farm sector on a sustainable growth path.

Formulation of an implementable short to medium term action plan with a focus on organisational, managerial, financial arrangements required for the Government to mitigate current agrarian distress.

The Board of Directors may kindly peruse and assess whether the Independent Expert Panel has achieved their objectives keeping in view of the terms of reference. However, prima facie, there may not be any hesitation to conclude that the populistic measure of Debt Waiver & Relief 2008 appears to have emerged out of the recommendations of Independent Expert Panel of NABARD, supported by SDC. It is this Panel which also estimated the total agricultural overdues of farmers at Rs.70,000/- crores in addition to working out a debt waiver and debt relief package.

Further, kind attention of the members of the Board is drawn towards an article on “The Politics of Loan Waiver” by one of the members of the above Expert Panel, Prof. M.S. Sriram. Incidentally, he is the one who submitted the report of Expert Panel, on behalf of Chairman of the Panel, to Chairman, NABARD. Specific attention of the member is drawn towards the following observation of the author of the article:

“Who is benefiting from loan waiver?

Given this background it is indeed intriguing that to garner votes every party continues to announce schemes that are so destructive to the institutional fabric. Why do parties do this? One of the arguments extended is that such schemes are “populist” in nature. If the scheme is benefiting only 40% of the rural population that are cultivators, and within them, 60% of the people who are indebted to institutional sources, and given that they generally are better off with relatively larger land

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holdings, then where does populism stand? A large part of the cultivators are out of the realm of institutional credit. They do not directly or indirectly benefit from this scheme and can see through the hypocrisy of the promises made by the political parties. The promise of reduction in interest rates is one of the most ludicrous promises to be made. Therefore why would the rural masses vote based on such a promise? Why then are our politicians so oblivious to these ground realities?”

An extract of the article on “The Politics of Loan Waiver”, which is published in the Magazine ‘Transforming India – July 2008’, is given as Annexure-III to this for the kind perusal of the members of the Board

Item No.15 To note and consider the draft Report of the High Level Committee on Financial Package for Handloom Sector appointed by Ministry of Textiles, Government of India.

Kind attention of the members of the Board is drawn to the following extract of the speech of the Hon’ble Prime Minister on the occasion of launch of the Handloom Mark on 28-06-2006 :

“Handloom cooperatives suffer from two problems in accessing credit. Firstly, the cost of credit is on the higher side. The other is that credit to handloom cooperatives have been choked because of a debt overhang. Considering the importance of handlooms, we need to address these problems on a priority. I have asked the Finance Minister to consider the feasibility of extending the low interest facility provided for agricultural loans to handloom weaves as well. I have also asked the Textile and Finance Ministers to look at the problem of debt, which is afflicting handloom cooperatives so that this can be rescheduled or cooperatives recapitalised so that this can be similar to that done for cooperative banks through the Vaidyanathan Committee. I am hope that we will resolve this problem in the next three months.”

In pursuance of the above, a meeting was held under the Chairmanship of the then Secretary (Textiles) on 21 August 2006 wherein a consensus emerged on a need for supporting Handloom Sector by providing credit @ 7% per annum and also for one time debt waiver of the viable and potentially viable handloom organisations along with the commitment of the State Governments for taking steps for institutional and regulatory reforms in such organisations.

In order to work out detailed strategies and action plan, as decided in the meeting held on 21 August 2006, a Committee was constituted under the Chairmanship of Managing Director, NABARD. The composition of the Committee is as follows:

1. Managing Director, NABARD, Mumbai - Convenor2. Representative of IBA3. Chief General Manager, RPCD, RBI, Mumbai4. Representative of NIFT5. Secretary (Handloom), Government of Orissa6. Secretary (Handloom), Government of Tamil Nadu7. Secretary (Handloom), Government of Uttar Pradesh8. Secretary (Handloom), Government of Assam9. Secretary (Handloom), Government of Kerala10. Secretary (Handloom), Government of Karnataka11. Secretary (Handloom), Government of West Bengal12. Secretary (Handloom), Government of Andhra Pradesh13. Representative of National Association of State Cooperative Banks14. Additional Development Commissioner (Handlooms)The first meeting of the Committee was held on 01 September 2006 at Mumbai. The draft package prepared by NABRD was discussed in the above meeting and it was by and large accepted by the participants with emphasis to provide hassle free credit to weavers, improve/revive the Cooperative structure, implement Handloom Weaver Group schemes, adopt cluster development strategy, involve all banks viz. Cooperative Banks/Regional Rural

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Banks/Commercial Banks in financing the weavers, waive overdue interest and also overdue loans which other-wise will be difficult for the societies to repay, help in capacity/skill improvement, develop strategy for marketing, establish Handloom Development Equity Fund (HEDF) in NABARD and enter into MOU for implementing the package etc. The draft report of the Committee was further discussed in a meeting of experts held in New Delhi on 27 September 2006. The High Level Committee submitted its recommendations to the Ministry of Textiles in October 2006. The Ministry advised to reformulate the Package on the basis of certain modifications suggested by the Ministry of Finance vide their letter dated 08 May 2008. Accordingly, the meeting of the Committee was held on 02 July 2008 at New Delhi. The meeting primarily deliberated on addressing the observations raised by the Ministry of Finance. The observations of the Ministry of Finance centered around (1) restructuring of loans rather than simply write off, (2) Part of restructuring cost to be borne by the financial institutions, State Governments which are primarily responsible for the decline of the handloom sector, must bear larger share of responsibility, (3) Handloom Sector cannot be equated with Agriculture Sector, Need to carry legal and institutional reforms in Handloom Sector, Viability of existing institutional structure, Dovetailing of handloom schemes approved for XI Plan. A copy of the Proceedings of the meeting of the High Level Committee on Handloom Sector held at New Delhi on 2 July 2008 is given as Annexure-I

for the kind perusal of the members of the Board. The members of the Board may kindly note that the High Level Committee was of the opinion keeping in view of the observations made by the Ministry of Finance that 20 per cent of the cost of the Package should be borne by the State Government and 5 per cent of the cost of the Package should be borne by the concerned SCB. However, Shri Subrahmanyam, Managing Director, NAFSCOB, one of the members of the above Committee was of the opinion that the share of the SCB will be subject to expediting the recapitalisation support to the cooperative credit institutions and also strengthening measures resulting in implementation of Agricultural Debt Waiver and Debt Relief Scheme 2008. Further, a copy of the article appearing in Economic and Political Weekly (24-30 May 2008) on Economics of Handloom Weaving – A field study in Andhra Pradesh, is given as Annexure-II for kind perusal.

The 4th meeting of the High Level Committee on ‘Reformulating the Financial Package for Weavers’ is scheduled to be held on 20 August 2008 and is expected to deliberate on the revised draft “Reformulated Financial Package for Weavers’ together with draft MOU. However, a copy of the suggested ‘Reformulated Package’ is given as Annexure-III for the kind perusal of the members of the Board.

Item No.18 To note the amended version of the guidelines prescribed by RBI for ensuring ‘Fit and Proper Criteria’ for Directors on Boards and CEOs of Rural Cooperative Banks.

As the members of the Board are kindly aware, as a part of the implementation of revival package for rural cooperative credit institutions, the State Governments have been persuaded to sign Memorandum of Understanding with restrictive provisions more particularly to accept the guidelines prescribed by RBI for ensuring ‘Fit and Proper Criteria’ for Directors on the Boards and CEOs of rural cooperative banks. These restrictions include the conditionality with regard to the age of the Director, educational qualification of the Director, Term of the Director and qualifications of the CEOs of rural cooperative banks. The Board of Directors of NAFSCOB have taken serious view on the guidelines with regard to the ‘Fit and Proper Criteria’. Therefore, Chairman and Board of Directors of NAFSCOB have initiated certain initiatives to ensure that the guidelines on ‘Fit and Proper Criteria’ are amended so as to ensure the democratic character of the cooperative credit institutions. These initiatives include representations to Governor, RBI; Chairman, NIMC, Secretary (Banking), Ministry of Finance, Government of India, Secretary (Agriculture), Ministry of Agriculture, Government of India.

The members of the Board may kindly appreciate the fact that the guidelines on the ‘Fit and Proper Criteria’ have been amended on 29 April 2008 based on the suggestions extended by NAFSCOB. The conditionalities with regard to the age, educational qualifications of the Directors have been removed. A copy of the amended version of the guidelines on ‘Fit and Proper Criteria’ for Directors on the Board and CEOs of rural cooperative banks is given as Annexure for the kind perusal of the members of the Board.

Item No.23 To consider venue, date and time to hold next meeting of the Board of Directors in December 2008.

As the members of the Board are kindly aware, the meetings of the Board of Directors

of NAFSCOB is held once in three months (Quarterly). The current Board Meeting is being

held for the quarter ending September 2008. The meeting for the next quarter i.e. October –

December 2008 is required to be held before the end of December 2008.

In view of the above, the members of the Board are requested kindly to fix the date

and venue for holding the next meeting of the Board of Directors of NAFSCOB on or before

31 December 2008.


PART – II

Item No.1 To note the list of State Cooperative Banks which are yet to remit the Annual Subscription/Arrears of Annual Subscription to NAFSCOB.

As the members of the Board are kindly aware that member banks are expected to remit the Annual Subscriptions to NAFSCOB before the end of June every year according to its Bye-laws. However, some of the member State Cooperative Banks do not remit the same on time. The office of NAFSCOB has been making persuasive efforts in impressing upon the member banks to remit the Annual Subscription in time and also to clear the arrears of Annual Subscription.

A glance at the status of the Annual Subscription as on 28 August 2008, enclosed as Annexure revealed that 08 out of 31 member State Cooperative Banks are yet to remit the Annual Subscription for the year 2008-09. It may kindly be noted that the following banks have also yet to remit the arrears of Annual Subscription payable till 2007-08, the details of which are given below:

1. Arunachal Pradesh SCB : Rs.6,25,000.002. Jammu & Kashmir SCB : Rs.1,50,000.003. Manipur SCB : Rs.6,00,000.004. Mizoram : Rs.6,50,000.005. Nagaland : Rs.7,56,875.00 Therefore, the members of the Board are kindly requested to peruse the status of Annual Subscription payable by the member State Cooperative Banks to the Federation.

It may be instructive for few banks to present the criteria for assessment of Annual Subscription payable by the banks to the Federation.

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Working Capital (Rs. in crores) Subscription for full year (Rs.)1. Upto Rs. 20 Crores 5,0002. Rs. 20 Crores to Rs. 50 Crores 25,0003. Rs. 50 Crores to Rs. 100 Crores 50,0004. Rs. 100 Crores to Rs. 300 Crores 1,00,0005. Rs. 300 Crores to Rs. 500 Crores 1,50,0006. Rs. 500 Crores to Rs. 700 Crores 2,00,0007. Rs. 700 Crores to Rs. 1000 Crores 2,50,0008. Above Rs. 1000 Crores 3,00,000

Kind attention of the members of the Board is also drawn towards the Bye-law No. 15 of the Federation in this regard:

Bye-law No. 15 : PAYMENT OF ANNUAL SUBSCRIPTION:

If the Annual Subscription is not paid before the end of June every year, the defaulting members shall not exercise the rights of membership till the arrears of subscription are paid. In the event of default by a member in the payment of annual Subscription, the representative of such Member Bank if holding an office in the Federation, shall cease to hold such office with effect from the 1st of July that year.

Item No.2 To note the list of State Cooperative Banks which are either fully or partially yet to remit the Additional Subscription towards the Office premises and Guest House of NAFSCOB.

As the members of the Board are kindly aware of the decision taken with regard to contribution towards the purchase of office premises and the Guest House of the Federation. Though the decision was taken in 1994 to mobilise a total sum of Rs.1,20,00,000/- from all member State Cooperative Banks at the rate of three times of their Annual Subscriptions, the Federation has so far received a total sum of Rs.1,17,65,000/- and a sum of Rs.2,35,000/- is yet to be received on this account.

Kind attention of the members of the Board is drawn towards the Bye-law No.8 which states as follows:

“Bye-law No.8: DISQUALIFICATION FROM MEMBERSHIP

The membership of State Cooperative Bank shall cease:

When any type of Annual Subscriptions/Additional Subscriptions due from it has not been paid for a period of two years unless otherwise determined by the Board.”

As per our Office records, the following banks did not remit the Additional Subscription:

1. Arunachal Pradesh2. Jammu & Kashmir3. Manipur4. Nagaland

A Statement indicating the amount to be paid by the above banks is given as Annexure to this item for the kind perusal of the members.

Therefore, the members of the Board are kindly requested to peruse the status of Additional Subscription payable by the member State Cooperative Banks to the Federation.

Item No.6 To note and consider the appointments in pursuance of the decision by Search Committee of NAFSCOB.

As the members of the Board are kindly aware, the Board of Directors of NAFSCOB in their meeting held on 28 September 2006, among others, resolved to authorise the Chairman, NAFSCOB to constitute a ‘Search Committee’ for filling up the existing vacancies in NAFSCOB. The composition of the ‘Search Committee’ is as follows:

Sr. No. Name Status in ‘Search Committee’

1 Chairman, NAFSCOB Chairman

2 Shri Vasanta Nageswara Rao, Vice Chairman, NAFSCOB

Member

3 Shri G.H. Amin,Vice Chairman, NAFSCOB

Member

4 Shri R.C. Padia,Managing Director, Gujarat SCB

Member

5 Shri B. SubrahmanyamManaging Director, NAFSCOB

Member/Convenor

In pursuance of the task of filling up the existing vacancies in NAFSCOB, the office had given wide publicity to the vacancies in various categories of positions through News Paper Advertisement, Website of NAFSCOB, request to member SCBs to consider deputing suitable candidates on deputation basis etc. as well as personal contact with reputed institutions connected with rural development/rural credit. In this connection the Search Committee interviewed the students of Post Graduate Diploma in Business Management at VAMNICOM on 21.12.2006 and selected one candidate for the Position of Assistant Director in NAFSCOB. The Search Committee also held an interview on 05.06.2007 at Navi Mumbai for filling up the remaining vacancies. However, in the said interview only one Assistant Director Position could be filled up due to lack of adequate response/suitable candidates.

Meanwhile, NAFSCOB continued to receive applications from eligible candidates for following vacant positions:

Sr. No. Name of the Position No. of Vacancies

1 Joint Director 1

2 Deputy Director 3

3 Assistant Director 2

4 Staff Assistant 1

Basing on the applications received, the office of NAFSCOB has short listed the candidates for filling up the vacant positions of Deputy Directors, Assistant Directors and Staff Assistant. Interviews were held for the above said position on 23-07-2008 by the

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Search Committee. The following candidates among the short listed candidates attended the interview:

1. Deputy Director:

1. Shri J.S. Hanama Shetti2. Ms. Dipti R. Parmar

2. Assistant Director:

1. Shri Ravi Inder Singh2. Shri B.B. Kadam

3. Staff Assistant:

1. Mrs. Ashwini Nilesh Gandhi

The Search Committee after careful consideration of the performance of candidates, their educational background, experience etc. resolved to select the following candidates from the present list of applicants and who appeared for the interview. It has been further decided to send offer letters of appointment to the following:

1. Deputy Director:

Shri J.S. Hanama Shetti

2. Assistant Director:

Shri B.B. Kadam

The Search Committee further resolved to authorise the Managing Director to initiate necessary steps for appointing the selected candidates in NAFSCOB, keeping in terms of the urgency and other administrative arrangements. The Search Committee authorised the Managing Director to continue to take necessary steps to ensure completion of the process of recruitment for the positions of Joint Director (01), Deputy Director (02).

The Search Committee further resolved to authorise the Managing Director to identify and appoint suitable candidates for the positions of Staff Assistant and Junior Assistant in due course of time, as per rules. The Search Committee also noted the requirement, as perceived by Chairman, NAFSCOB, for Personal Secretary to Chairman and advised to refer the same to the competent authority. Offer letters have already issued to selected candidates.

Therefore, the members of the Board are requested kindly to note the appointments

made in pursuance of the decision by Search Committee of NAFSCOB.

Item No.7 To ratify the action taken by the Chairman, NAFSCOB in appointing a Personal Secretary to Chairman, NAFSCOB to assist him at New Delhi.

As the members of the Board are kindly aware, the need for appointment of Personal Secretary to assist Dr. Bijender Singh MLA, Chairman, NAFSCOB at New Delhi as headquarters has been impressed upon to the Search Committee and Executive Committee in their meetings held on 23 July 2008 in the office of NAFSCOB at Vashi, Navi Mumbai. The Search Committee noted the requirement, as perceived by Chairman, NAFSCOB, for Personal Secretary to Chairman and advised to refer the same to the competent authority. The Executive Committee resolved to empower Dr. Bijender Singh, Chairman, NAFSCOB to appoint Personal Secretary to assist him at New Delhi. Further resolved to authorize Chairman, NAFSCOB to fix his monthly emoluments, terms of appointment etc. The action

taken in this regard is suggested to be placed before Board of Directors of NAFSCOB for ratification.

In pursuance of the above resolution, Dr. Bijender Singh, Chairman, NAFSCOB identified Shri Amit Kumar Ahlawat, H.No. 1197, Kangan Heri Road, Vill. & P.O. Chhawla, New Delhi 110 071 for appointment of Personal Assistant to assist him at New Delhi. In pursuance of the Office Memo dated 29 July 2008 by Chairman, NAFSCOB, the appointment order has been issued to Shri Amit Kumar Ahlawat as Personal Secretary to Chairman to assist Chairman at New Delhi in the payscale of Rs.5500-175-9000 (Payscale of Assistant Director in NAFSCOB). Shri Amit Kumar Ahlawat has already reported duties on 01 August 2008.

Therefore, the members of the Board are requested kindly to approve and ratify the action taken by the Chairman, NAFSCOB in appointing a Personal Secretary to Chairman, NAFSCOB to assist him at New Delhi.

Item No.8 To ratify the decision of Executive Committee in nominating Dr. Bijender Singh, Chairman, NAFSCOB for participation in the Study Mission to Israel & Egypt from 16-25 August 2008 organised by NCUI and also the expenditure incurred.

National Cooperative Union of India vide its letter dated 09-06-2008 intimated that it has made an arrangement with International Centre for Cooperative Studies, NISPED, Israel for study mission of a delegation from Indian Cooperative Movement to Israel to strengthen & facilitate bilateral cooperation, cultural, educational and social contracts. On this line, NUCI have planned to arrange a study visit of a cooperative delegation from India to Israel & Egypt from 16-25 August 2008. The delegates will have the opportunity to visit Cairo (Egypt) for 3/4 days on their return journey. The cost of the tour is Rs.1,90,000/- (Rupees

One lakh ninety thousand only). The cost includes International Airfare in economy class, Visa fees for Israel & Egypt, Overseas Insurance, Cost of boarding, lodging, transfer, study visit to cooperatives & sight seeing in Israel & Egypt, hotel accommodation in three/four star hotel on single occupancy basis, service charges/overhead expenses. The above cost does not include the cost of domestic travel in India, visits not included in the programme, expenses of personal nature like laundry, telephone, room service, portages and tips etc. The size of the delegation shall be a maximum of 15 persons.

The Executive Committee in its meeting held on 23 July 2008 at Vashi, Navi Mumbai resolved to nominate Dr. Bijender Singh, Chairman, NAFSCOB for participating in the Study Mission to Israel & Egypt from 16 to 25 August 2008 organised by NCUI subject to the approval/ratification by Board of Directors. It was also resolved to meet his entire expenditure proportionately from out of the resources of NAFSCOB as well as funds available under IEEF of NAFSCOB. Also resolved to sanction per diem not exceeding US$ 100 per day for meeting miscellaneous expenses, apart from the amount to be sent to NCUI towards the cost of the Tour. Further resolved to authorize the office to take necessary steps in this regard. In pursuance of the decision of the Executive Committee, Dr. Bijender Singh, Chairman, NAFSCOB participated in the above Study Mission.

However, Chairman opted for a regular programme from 19-08-2008 to 25-08-2008 to Israel and Egypt wherein he is eligible to draw US$ 500 per day for Seen days (US$ 3500) exclusive of the cost of international air fare by Business Class, Visa Charges, Airport Taxes, Overseas Medical Insurance etc.

Therefore, the members of the Board are requested kindly to approve and ratify the decision taken by the Executive Committee in nominating Dr. Bijender Singh, Chairman, NAFSCOB to participate in the Study Mission to Israel & Egypt from 19 to 25 August 2008 organised by NCUI and also approve the expenditure incurred by him in connection with the above Study Tour.

Item No.9 To consider nominations to 8th Meeting of ICA-AP Regional Assembly and 5th Asia-Pacific Cooperative Forum and other related events to be held from 1st to 6th December 2008 at Hanoi, Vietnam.

As the members of the Board are kindly aware, NAFSCOB is a member of International Cooperative Alliance (ICA). International Cooperative Alliance – Asia and Pacific (ICA-AP) is holding 8th ICA-AP Regional Assembly together with the 5th Asia-Pacific Cooperative Forum and other related events from 1st to 6th December 2008 in Hanoi, Vietnam as per the attached Schedule. The joint opening of Regional Assembly and Cooperative Forum will be held at My Dinh National Convention Center in the afternoon of 3 December 2008. The Cooperative Forum and the Regional Assembly will be held on 4 and 5 December 2008 respectively at Melia Hanoi Hotel. The meeting of Regional Assembly will be as per the prescribed agenda on various statutory and other issues relating to working of ICA-AP. The theme of the 5th Asia-Pacific Regional Cooperative Forum will be “Cooperative

Advantage in the Economy of Asia and the Pacific”. The Forum will bring together cooperative thinkers, leaders, professionals and members to deliberate upon various sub-themes of the Forum and interact with distinguished experts and ICA partners on important issues relevant to cooperative development. Considering recovery of extra costs and providing the right ambience for meaningful and effective deliberation at the Cooperative Forum and the Regional Assembly, ICA-AP is charging a Registration Fee of US$ 300 pr delegate to participate in the deliberations. All the meetings in Hanoi will be co-hosted by the Vietnam Cooperative Alliance (VCA) – a member organisation of ICA. Participation in all the events in Hanoi will be on self-financing basis. The VCA has negotiated special room rates in different hotels in Hanoi. The Registration Forum should be sent to ICA-AP, New Delhi by 30 October 2008. A copy of the announcement letter dated 24 June 2008 received from ICA-AP, New Delhi is given as Annexure for the kind perusal of the members of the Board.

It is proposed to nominate Chairman, NAFSCOB and Managing Director, NAFSCOB to participate in the above events. Therefore, the members of the Board are requested kindly to approve their nomination, incur expenditure including Registration Fee and authorise the office to take necessary steps in this regard.

Item No.10 To consider the proposal to organise an international study tour to Australia and New Zeland under IEEF during January – March 2009.

The members of the Board are requested kindly to pass the following resolutions:

1. Resolved to authorise the Managing Director, NAFSCOB to initiate all necessary arrangements to organise international study tour to identified institutions in Australia and New Zeland under International Education and Exposure Fund (IEEF) of NAFSCOB during January – March 2009.

2. Further resolved to authorise the Managing Director, NAFSCOB to nominate representatives of the eligible member State Cooperative Banks as per the rules of IEEF of NAFSCOB.

3. Further resolved to nominate the Chairman, NAFSCOB and Shri B. Subrahmanyam, Managing Director, NAFSCOB to participate in the above programme and meet their entire expenditure out of the funds available under IEEF/resources of NAFSCOB.

Item No.11 To consider and recommend to the General Body the Auditor’s Report and Statement of Accounts of the Federation for the year 2007-08 and approve Compliance Report on the Observations made by the Auditors.

The annual audit of the accounts of the Federation for the year 2007-2008 was carried out by M/s. A.J. Shah & Co., Chartered Accountants, Mumbai, the Auditors appointed by the General Body in their meeting held on 27-07-2007 at New Delhi as per Sub-Section 2 of Section 70 of Multi-State Cooperative Societies Act, 2002. The Audited Statement of Accounts, the Auditor’s Report/Observations as well as the Compliance on the Auditor’s Report/Observations are given in Annexures I, II and III respectively to this item.

The members of the Board are requested kindly to consider and approve the Audited Statement of Accounts, Auditors Report/Observations and Compliance by the Federation thereof and recommend the same to the General Body of the Federation for adoption.

Item No.12 To consider and adopt the 45th Annual Report of the Federation for the year 2007-08 and recommend to the General Body for adoption.

As the members of the Board are kindly aware, the Board of Directors of NAFSCOB in their meeting held on 28 April 2008 suggested for additions/modifications and/or correction to the draft Forty Fifth Annual Report of NAFSCOB, which was placed before them for consideration and it was resolved to approve with the above suggestions. Further resolved to authorize the Managing Director to incorporate the suggested additions/modifications and/or corrections and finalise the same in consultation with Chairman.

As authorized by the Board, the Managing Director, NAFSCOB incorporated the suggested additions/modifications and/or corrections and finalized the same in consultation with the Chairman, NAFSCOB. The revised version of the 45 th Annual Report on Activities and Achievements of the Federation during the year 2007-2008 is attached separately for the kind perusal of the members of the Board. The members of the Board are requested kindly to consider the same and recommend to the General Body for adoption.

Item No.13 To consider and approve the programme of activities for the year 2008-09.

The members of the Board may kindly appreciate that a detailed report on the work accomplished during the year 2007-08 is given in the Annual Report of NAFSCOB for the year 2007-08. Further, a resume of important programme of activities proposed ofr the year 2008-09 is given below:

A. Research Studies/Publications/Reports:

1. Review of Recovery Performance of State Cooperative Banks and District Central Cooperative Banks – A Statistical Analysis.

2. Basic Data on Performance of State Cooperative Banks: 2006-07.

3. Basic Data on Performance of District Central Cooperative Banks: 2006-07.

4. Performance of Primary Agricultural Credit Societies: 2006-07.

5. Analytical Study of Short Term Agricultural Loans for Rabi and Kharif: 2007-08.

6. District-wise Performance of PACS – Statistical Analysis.

7. Directory of DCCBs: 2007-08.

8. Compendium of AIMAS Circulars.

9. Status of Implementation of Revitalisation Package for CCS in identified states.

10. Review of Implementation & Impact Analysis of ‘Agricultural Debt Waiver and Debt Relief Scheme-2008’ in identified states.

11. Status of lending Short Term Farm Credit to Farmers at 7 percent.

12. Report of the Jury on Performance of State Cooperative Banks.

13. Report on Performance Awards to PACS.

14. Report on Performance Awards to the Best Performing Bank under All India Mutual Arrangement Scheme.

15. NAFSCOB Bulletin (Quarterly Publication).

16. Directory of SCBs (Quarterly Publication).

17. Operational Manual on AIMAS – 2007.

18. Cypher Code System for AIMAS – 2008 (revised).: 13.1 :

19. Directory of members of AIMAS – 2008 (revised).

20. Compendium of Specimen Signature under AIMAS.

B. Conferences/Seminars/Workshops/Training Programmes during the year:

1. Conference on ‘Recent Trends in Cooperative Banking’ for SCBs and DCCBs. (Conferences at Regional level)

2. Annual Workshop of participant State Cooperative Banks under All India Mutual Arrangement Scheme/Zonal Reconciliation Meetings for member SCBs under All India Mutual Arrangement Scheme.

3. National Conference on Implementation of recommendations of the Task Force on “Revival of Cooperative Credit Institutions” set up by Government of India under the Chairmanship of Prof. A. Vaidyanathan.

4. Regional Workshops on ‘Agricultural Debt Waiver and Debt Relief Scheme-2008’ in identified states.

5. National Workshop on “Investment Management” for Chief Executives of State Cooperative Banks.

6. National Conference of Chief General Managers/General Managers/Senior Officers of State Cooperative Banks

7. Orientation Programme to PS/PAs of Chairmen/Presidents/Administrators/Special Officers and Chief Executives of State Cooperative Banks.

C. Effort towards Computerisation in NAFSCOB:

Computerisation in NAFSCOB is an ongoing activity and during the year it is proposed to upgrade the computer system and also extend the application of the same to the following areas of activities more comprehensively:

1. Performance Monitoring of SCBs/DCCBs/PACS.

2. Planning, Research & Development (PRD) Cell Activities and Statistics.

3. All India Mutual Arrangement Scheme (AIMAS) – Initiating the System for clearance operations under AIMAS through dedicated website, supply of Specimen Signatures, Manual on AIMAS, Cypher Code, Directory of member banks of AIMAS etc. in CD form.

4. Library Information System.

5. Financial Accounting and Pay Roll.

6. Annual Performance Awards for SCBs, PACS and under AIMAS

7. General Administration.: 13.2 :

In addition to the above NAFSCOB is also expected to provide consultancy inputs to all its member institutions and their affiliates. Further, NAFSCOB is also expected to monitor the disbursement and recovery of loans by the short term cooperative credit structure and develop a mechanism of evaluation to assess the impact of cooperatives. Therefore a package of common application software needs to be developed to cater the exact requirements of NAFSCOB as well as its constituents to enable their efficient functioning and conduct of day to day operations in the following areas:

i) Research:

- Formative Research- Process Evaluation

- Summarative Evaluation

ii)Data generation/compilation, resulting in number of useful Publications.

Further, NAFSCOB may be required to meet the expenditure towards Common Accounting System developed by NABARD for SCBs/DCCBs/PACS.

D. ‘Online AIMAS’ – Clearing Operations under AIMAS through dedicated website:

The operations under AIMAS at the level of NAFSCOB as well as at the level of member SCBs and also majority of member DCCBs and UCBs are computerised. The participant member SCBs has requested the NAFSCOB to explore possibilities for starting Online Clearance Operations under AIMAS through a dedicated website. NAFSCOB in consultation with the participating member SCBs of the scheme will take necessary steps for implementation of ‘Clearing Operations under AIMAS through dedicated website’ during the year. This effort of NAFSCOB will facilitate speedy clearance of banking instruments, solve reconciliation problems, facilitate up to date accounting etc.

E. Dissemination of Information through Compact Discs in place of Hard Copies:

NAFSCOB brings out a number of publications in the form of hard copy for the use of member State Cooperative Banks and others concerned. In this direction it is proposed to dispense with the practice of making available hard copies of the documents, wherever possible and make them available in the form of CDs to all SCBs/DCCBs/UCBs.

In addition to the above planned programme of activities, NAFSCOB will also take u various other activities as may be spelt out by the Board of Directors of NAFSCOB from time to time.

Therefore, the members of the Board are requested kindly to consider and approve the programme of activities proposed for the year 2008-09 and recommend the same to the General Body of NAFSCOB for approval and adoption.

Item No.14 To consider and approve the Annual Budget of Income and Expenditure of the Federation for the year 2008-09.

The members of the Board are kindly aware as per the provisions of the Bye-laws of

the Federation, the Board is required to present an Annual Budget of the Income and

Expenditure of the Federation for the year 2008-2009 and accordingly the same is Annexed

to this item for the kind consideration and approval of the members of the Board and

recommend to the General Body for adoption.

Item No.16 To conduct election for the vacant position of Vice-Chairman, NAFSCOB representing Northern Zone.

The Board of Directors are kindly aware that the General Body of NAFSCOB and subsequently the Board of Directors of NAFSCOB, as per the provisions contained in the Multi-State Cooperative Societies Act and Rules, 2002 and Bye-laws of NAFSCOB was constituted on 28-06-2005 at the meeting of NAFSCOB held at Ernakulam. Kerala. Further, the vacancies arising after the meeting of the Board of Directors held on 28-06-2005 were filled up in the meetings of the Board of Directors held at Mumbai on 28-06-2006, at

Mumbai on 05 January 2007 and at Bangalore on 26 February 2008 as per the provisions of the Multi-State Cooperative Societies Act and Rules 2002 and Bye-laws of NAFSCOB.

The members are also aware that Board of Directors in their meeting held on 27 November 2007 at New Delhi NAFSCOB suggested to conduct the election for the vacant post of Vice-Chairman, NAFSCOB representing Northern Zone in the meeting of the Board of Directors to be held on 26 February 2008 at Bangalore. Accordingly, a proposal was placed before the Board for filling the above vacant position in the meeting held on 26 February 2008 at Bangalore. However, as there was no nomination received for the position of Vice-Chairman representing Northern Zone, it was resolved to postpone the same. As proposed by Shri Jagneswar and seconded by Dr. Bijender Singh MLA, it was resolved to co-opt Shri Satyendra Narain Singh, Chairman, Bihar State Cooperative Bank as one of the Vice-Chairman of NAFSCOB. Further resolved to initiate the process of election for the vacant position of Vice-Chairman representing Northern region in the next General Meeting/ Board of Directors meeting scheduled to be held on or before September 30, 2008.

Accordingly, the election process for the position of Vice-Chairman is scheduled to take place in the meeting of the Board of Directors, which is scheduled to be convened for this purpose at 1400 hours on 20 September 2008 at Bhubaneshwar.

NAFSCOB/B-4(126)/2008-09/256 Date: 11-08-2008

All the Members of the Board of NAFSCOB(As per the List)

Dear Sir

Meeting of the Board of Directors of the Federation to be held at 10.30 A.M. on 20 September 2008 at Bhubaneshwar, Orissa

The next meeting of the Board of Directors of the Federation will be held at 10.30 A.M. on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013 (Tel.No. 0674 2300008/2300014 Fax: 0674 2301880).

The List of Agenda Items proposed for discussion in the meeting is enclosed herewith. Notes on Agenda will be sent to you soon. Kindly make it convenient to attend the above meeting.

Thanking you

Yours faithfully

(B.SUBRAHMANYAM)Managing Director

Encl: as above

: 4 :

Copy forwarded for favour of information and perusal with a request kindly to make it convenient to attend the meeting to:

Special Invitees:

1. Shri U.C. Sarangi IAS, Chairman, National Bank for Agriculture and Rural Development, Plot No. C-24, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051

2. Shri Bhagwati Prasad, Chief Executive, National Cooperative Union of India, 3 Siri Institutional Area, August Kranti Marg, New Delhi 110 016

NAFSCOB/B-4(126)/2008-09/257 Date:11-08-2008

The Chairmen/Presidents/Administrators/Special Officers, Chief Executives All member State Cooperative Banks(Non-Members of the Board of Directors of NAFSCOB)

Dear SirInterface with Board of Directors of NAFSCOB at 10.30 A.M.

on 20 September 2008 at Bhubaneshwar, Orissa

As you may be kindly aware, the next meeting of the Board of Directors of our Federation is scheduled to be held at 10.30 A.M. on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013 (Tel.No. 0674 2300008/2300014 Fax: 0674 2301880).

We are pleased to arrange an Interface of non–members of the Board of Directors of NAFSCOB representing State Cooperative Banks with the Board of Directors of NAFSCOB at 10.30 A.M. on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013 (Tel.No. 0674 2300008/2300014 Fax: 0674 2301880).

The Interface is aimed to discuss the issues arising out of various policy issues and also to review the implementation of the Revised Revival Package of STCCS as recommended by the Task Force under the Chairmanship of Prof. A. Vaidyanathan, implications of Agricultural Debt Waiver and Debt Relief Scheme 2008 announced by Government of India on the cooperative credit institutions, etc. The Interface also may consider the need for organizing Region-wise Meet of Chairmen/Chief Executives of State Cooperative Banks as and when desired by the Chairman of the Federation. The Interface will further consider the need for continuity of the same on quarterly basis. Therefore, we request you kindly to make it convenient to participate in the above Interface. Kindly confirm your participation.

We are glad to inform you that the meeting is hosted by the Orissa State Cooperative Bank. We request you kindly to make your travel plan so as to reach Bhubaneshwar on 19 September 2008 and depart on or before forenoon of 22 September 2008. The Orissa State Cooperative Bank will make necessary arrangements for your Stay in the Hotel from 19 to 22 September 2008 (not more than Three nights) and transport from Airport/Railway Station to Hotel. The Bank may plan for a field visit to the Delegates on 21 September 2008. You may kindly send your travel plans in

: 2 :

the enclosed Proforma to the following on or before 10 September 2008 under intimation to us for enabling them to make necessary arrangements for your transport and stay:

Shri R.N. Dash IASManaging DirectorOrissa State Cooperative Bank Ltd.

Pandit Jawaharlal Nehru MargBhubaneshwar 751 001

Tel: 0674 2510528Fax: 0674 2510214

Thanking you

Yours faithfully


Encl: as above

NATIONAL FEDERATION OF STATE COOPERATIVE BANKS LTD.Vashi, Navi Mumbai

MEETING OF THE BOARD OF DIRECTORS

20-09-2008 AT BHUBANESHWAR, ORISSA

PROFORMA

1. Name :

2. Designation :

3. Name of the Institution :

4. Number of Person, if any, : accompanying

5. Details of Arrival/Departure :

a) Arrival : Date : Flight No.: Time :

b) Departure : Date : Flight No.:

Time :

6. Food Preference : Non-Veg.

_______________Signature

NAFSCOB/B-4(126)/2008-09/ 258 Date: 11-08-2008

The Members of the Board, NAFSCOB and

Special Invitees (As per the List)

Dear Sir

Sub: Meeting of the Board of Directors of the Federation to be held at 10.30 a.m. on 20 September 2008 at Bhubaneshwar Ref: Our Meeting Notice No. NAFSCOB/B-4(126)/2008-09/ 256

Dated 11-08-2008

In continuation of our above cited reference on the captioned subject matter, we would like to inform you that the meeting of the Board of Directors of our Federation will be held at 10.30 A.M. on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013 (Tel.No. 0674 2300008/2300014 Fax: 0674 2301880). The meeting is hosted by the Orissa State Cooperative Bank Ltd.

We, therefore, request you kindly to make your travel plan so as to reach Bhubaneshwar on 19 September 2008 and depart on or before forenoon of 22 September 2008. The Orissa State Cooperative Bank will make necessary arrangements for your Stay in the Hotel from 19 to 22 September 2008 (not more than Three nights) and transport from Airport/Railway Station to Hotel. The Bank may make arrangements for a field visit to the Delegates on 21 September 2008. You may kindly send your travel plans in the enclosed Proforma to the following on or before 10 September 2008 under intimation to us for enabling them to make necessary arrangements for your transport and stay:

Shri R.N. Dash IASManaging DirectorOrissa State Cooperative Bank Ltd.Pandit Jawaharlal Nehru MargBhubaneshwar 751 001

Tel: 0674 2510528Fax: 0674 2510214 Thanking you

Yours faithfully


Encl: as above

NAFSCOB/B-4(126)/2008-09/ Date: 12-08-2008

Shri R.C. Pathak

Managing DirectorUttarakhand State Cooperative Bank Ltd.Sijwali Friends TowerKaladungi Road, Haldwani (Nainital)Nainital 263 139

Dear SirMeeting of the Board of Directors and Annual General Meeting

of NAFSCOB on 20-09-2008 at Bhubaneshwar, Orissa

We have issued Notices for the following meetings scheduled to be held on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013:

1. Meeting of the Board of Directors of NAFSCOB 2. Interface meeting with the Board of Directors of NAFSCOB by Non-members of

Board3. Annual General Meeting of NAFSCOB

In this connection, we would like to inform you that the Board of Directors of NAFSCOB in their meeting held on 27 November 2007 at New Delhi resolved to approve the request of Uttarakhand State Cooperative Bank Ltd. for the membership of National Federation of State Cooperative Banks Ltd. (NAFSCOB) with effect from April 01, 2008. We have conveyed the decision of our Board to your Bank vide our letter dated NAFSCOB/S-132/2007-08/634 dated 11-01-2008 wherein we have informed that the Uttarakhand State Cooperative Bank is enrolled as one of the members of NAFSCOB with effect from April 01, 2008 subject to the payment of Annual Subscription as applicable. We have requested your Bank to remit the Annual Subscription of Rs.2,50,000/- (Rupees Two lakhs fifty thousand only) for the year 2008-09 vide our letter No. NAFSCOB/A-6(V)/2008-09/08 dated 03-04-2008, which is yet to be received by our Federation.

The participation of your bank in the above meetings is subject to remittance of the payment of Annual Subscription for the year 2008-09. We are enclosing herewith the Meeting Notices and related intimation issued by NAFSCOB for your kind perusal. Kindly confirm.

Thanking youYours faithfully


Encl: as above: 2 :

Copy to :

Shri S. Raju IASAdministratorUttarakhand State Cooperative Bank Ltd.

Sijwali Friends TowerKaladungi Road, Haldwani (Nainital)Nainital 263 139



MEETING OF THE BOARD OF DIRECTORS20 SEPTEMBER 2008 AT BHUBANESHWAR, ORISSA

INDEX

Item No. Item Page No.1

2

To confirm the Proceedings of the meeting of the Board of Directors held at New Delhi on 28 April 2008.

To note the action taken on the resolutions and decisions of the meeting of the Board of Directors held on 28 April 2008.

1 to 2.5

3 To note the Annual Policy Statement for the year 2008-09 as announced by Governor, Reserve Bank of India on 29 April 2008.

3 to 3.7

4 To note the First Quarter Review of the Annual Statement on Monetary Policy for the year 2008-09.

4 to 4.4

5 To note the upward revision in the Cash Reserve Ratio (CRR). 5 to 5.7

6 To assess the status of implementation of the Revised Revival Package of short term cooperative credit structure, as recommend by the Task Force on Revitalisation of Cooperative Credit Institutions set up under the Chairmanship of Prof. A. Vaidyanathan.

6 to 6.5

7 To note the guidelines and also the status on ‘Agricultural Debt Waiver and Debt Relief Scheme 2008’ and consider the implications on cooperative credit institutions.

7 to 7.22

8 To note and consider the ‘Action Plan to address Agrarian Distress in India- submitted by independent Expert Panel of NABARD – SDC’ to NABARD.

8 to 8.52

9 To note the NABARD Circular on ‘Liquidity support to SCBs under section 38 (vii) of NABARD Act, 1981 to tide over the temporary liquidity crunch faced by Cooperative Banks’.

9 to 9. 9

10 To note the sanction of short term credit limits to SCBs for financing Seasonal Agricultural Operations (SAO) against pledge of Government securities.

10 to 10.1

11 To note the NABARD Policy for the year 2008-09 on Eligibility Criteria for drawal of refinance from NABARD under Schematic Lending.

11 to 11.4

12 To note the revision in rate of interest on refinance in respect of investment credit from NABARD.

12 to 12.3

13 To note the provision of NABARD refinance under Automatic Refinance Facility (ARF) on term loans extended by banks for financing of Handloom Weaver Groups (HWGs) and Master Weavers (MWs).

13 to 13.2

14 To note the NABARD Policy for the year 2008-09 with regard to Short Term Credit Limits to SCBs/DCCBs for financing the Working Capital Requirements of Primary/Apex/Regional Weavers’ Cooperative Societies.

14 to 14.12

15 To note and consider the draft Report of the High Level Committee on Financial Package for Handloom Sector appointed by Ministry of Textiles, Government of India.

15 to 15.24

16 To note the revision of exposure norms and Monitoring &

Reporting procedures under Credit Monitoring Arrangements (CMA).

16 to 16.8

17 To note the customer charges for use of ATMs for cash withdrawal and balance enquiry.

17 to 17.3

18 To note the amended version of the guidelines prescribed by RBI for ensuring ‘Fit and Proper Criteria’ for Directors on Boards and CEOs of Rural Cooperative Banks.

18 to 18.2

19 To note the outcome of the first meeting of the Standing Committee on short term cooperative credit and banking institutions convened by NAFSCOB on 28 May 2008 at Kolkata.

19 to 19.12

20 To note the outcome of the first meeting of the Working Group on Code of Standards and Fair Practices for SCBs and DCCBs convened by NAFSCOB on 28 May 2008 at Kolkata.

20 to 20.3

21 To note the consultation with DCCBs in Orissa on the issue of NAFSCOB membership to DCCBs.

21 to 21.3

22 To note and consider the request of Indian Institute of Banking & Finance to continue with/enrol as institutional members.

22 to 22.4

23 To consider venue, date and time to hold next meeting of the Board of Directors in December 2008.

23

Addl. 1

To note the introduction of ‘Asset-Liability Management’ (ALM) in State Cooperative Banks (SCBs)

1 to 1.25

2 To note the introduction of revised frame work for ‘Long Form Audit Report’ (LFAR) for SCBs and DCCBs.

2 to 2.28

Any other item with the permission of the Chair.



PART - II

Item No. Item

1 To note the list of State Cooperative Banks which are yet to remit the Annual Subscription/Arrears of Annual Subscription to NAFSCOB.

2 To note the list of State Cooperative Banks which are either fully or partially yet to remit the Additional Subscription towards the Office premises and Guest House of NAFSCOB.

3 To note the status of Annual Subscription/Arrears of Annual Subscription and other dues payable by the member banks to NAFSCOB under AIMAS.

4 To note the status of contribution/arrears of contribution towards Federation’s Publications and other dues.

5 To note and consider the suggested models for seeking contributions from member State Cooperative Banks to purchase premises in Mumbai to house Guest House/Visiting Officers Flat for NAFSCOB.

6 To note and consider the appointments in pursuance of the decision by Search Committee of NAFSCOB.

7 To ratify the action taken by the Chairman, NAFSCOB in appointing a Personal Secretary to Chairman, NAFSCOB to assist him at New Delhi.

8 To ratify the decision of Executive Committee in nominating Dr. Bijender Singh, Chairman, NAFSCOB for participation in the Study Mission to Israel & Egypt from 16-24 August 2008 organised by NCUI and also the expenditure incurred.

9 To consider nomination to 8th Meeting of ICA-AP Regional Assembly and 5th

Asia-Pacific Cooperative Forum and other related events to be held from 1st to 6th December 2008 at Hanoi, Vietnam.

10 To consider the proposal to organise an international study tour to Australia and New Zeland under IEEF during January – March 2009.

11 To consider and recommend to the General Body the Auditor’s Report and Statement of Accounts of the Federation for the year 2007-08 and approve Compliance Report on the Observations made by the Auditors.

12 To consider and adopt the 45th Annual Report of the Federation for the year 2007-08 and recommend to the General Body for adoption.

13 To consider and approve the programme of activities for the year 2008-09.

14 To consider and approve the Annual Budget of Income and Expenditure of the Federation for the year 2008-09.

15 Any other item with the permission of the Chair.

16 To conduct election for the vacant position of Vice-Chairman, NAFSCOB representing Northern Zone.

NAFSCOB/B-4(126)/2008-09/291 Date: 30-08-2008

The Members of the BoardNAFSCOB and Special Invitees (As per the List)

Dear Sir

Meeting of the Board of Directors of the Federation to be held on 20 September 2008 at Bhubaneshwar, Orissa

In continuation of our Meeting Notice No. NAFSCOB/B-4(126)/2008-09/256 dated 11-08-2008, we are forwarding herewith the Notes on Agenda to be discussed in the above meeting scheduled to be held at 10.30 A.M. on Saturday the 20th September 2008 in the Conference Hall of Hotel Swosti Plaza, P-1 Jayadev Vihar, Opp. Nelco Corporate Office, Bhubaneshwar 751 013 (Tel.No. 0674 2300008/2300014 Fax: 0674 2301880).

Kindly make it convenient to attend the meeting.

Thanking you

Yours faithfully


Encl: as above

P.S. : Kindly bring copy of this Agenda Notes along with you.

Item No.15 Any other item with the permission of the Chair.

Item No.5 To note and consider the suggested models for seeking contributions from member State Cooperative Banks to purchase premises in Mumbai to house Guest House/Visiting Officers Flat for NAFSCOB.

As the members of the Board are kindly aware, the Executive Committee of NAFSCOB in its meeting held on 28 August 2007 constituted a Two Member Committee under the Chairmanship of Shri Jagneswar, President, Orissa SCB with Managing Director, NAFSCOB as Member Secretary and Dr. Bijender Singh, Chairman, NAFSCOB as Special Invitee to consider all relevant aspects for acquiring a premise to be used as Visiting Officers Flat/Guest House of NAFSCOB. Kind attention of the members of the Board is drawn to the following resolution of the meeting of the Executive Committee held on 23 July 2008 at Vashi, Navi Mumbai preceeded by the meeting of the above Sub-Committee:

“Resolved to note the developments with regard to procuring the Guest House/Visiting Officers Flat (VOF) for NAFSCOB. Further resolved to note the presentation of Chairman of the Sub-Committee, who was present in the meeting, on the financial implications for procuring the premises. The Chairman of the Sub-Committee made a presentation with regard to the available premises for accommodating the Guest House/VOF for the use by NAFSCOB. It has been suggested that NAFSCOB need to equip itself with sufficient funds ranging upto Rs.4.00 crores (Rupees Four crores only) to buy a decent/spacious flat of around 1800 Sq. Ft. The Executive Committee also noted the fact that such type of decent accommodation is available in convenient area in Bandra (West), Mumbai. The Sub-Committee suggested the members of the Executive Committee to mobilize resources to meet the cost of around Rs.4.00 Crores to buy the premises for the use of Guest House/VOF.

Resolved to note the presentation/recommendations of the Sub-Committee to mobilize resources to meet the cost of around Rs.4.00 crores (Rupees Four crores only) to buy the premises for the use of Guest House/VOF in a decent locality at Mumbai. Further resolved to advise the Managing Director, NAFSCOB to prepare two or three suggested models of criteria for raising the resources to meet the estimated cost of Rs.4.00 crores for purchasing the Guest House/VOF and place the same as a separate agenda items in the next meeting of the Board of Directors of NAFSCOB for its consideration.”

Accordingly, two separate formula have been worked out as given below and the details are given in the Annexure:

Suggested Formula Amount to be solicited (Rs.)1 Based on Five Times of the Working Capital of all

member SCBs ORIf member SCBs in North Eastern Region including Sikkim are exempted

4,12,92,985.00

4,00,48,360.00

2 Based on Five Times of annual subscription formula ORIf member SCBs in North Eastern Region including Sikkim are exempted

3,43,75,000.00

2,91,25,000.00

The contribution of NAFSCOB from its general resources will be around

Rs.50,00,000/- (Rupees Fifty lakhs only).

Documents

NATIONAL FEDERATION OF STATE COOPERATIVE ...nafscob.org/NOTICE_files/B-4(126).doc · Web viewAsian Development Bank (US $1 billion), kfW (Euro 140 million and World Bank (US $600