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Regulatory body for co-operative banks soon: Sinha

India's Finance Minister Yashwant Sinha on Thursday said the government would soon consider appointing a regulatory body for the co-operative banks in the country.

The government would take into consideration various suggestions, including entrusting the task with the National Bank for Agriculture and Rural Development and appointing an apex co-operative bank, while deciding on the regulatory mechanism, Sinha said while addressing a NABARD function in New Delhi.

Asserting the government's commitment to the promotion of the co-operative movement in the country, the finance minister, however, regretted the unsatisfactory response of the rural co-operative credit system to the adoption of modern technology.

''If the trend continues, the co-operatives could be left far behind in the race.''

Co-operative banks must initiate an action plan for gradual technology adoption at different levels. The Indian farmer was not averse to technological innovations and this was evident from the success of the Kisan Credit Card Scheme.

The other two basic issues confronting the sector were ensuring co-operative corporate governance and correcting the lopsided development of co-operatives across the states, he said.

It was the duty of both the co-operators and the government to rise to the occasion and proceed further with the agenda of reforms in the co-operative sector with a very positive mind. The Capoor Committee had made wide ranging recommendations ''and we are working on these recommendations very actively,'' Sinha said.

At the function, three state co-operative banks and 18 central co-operative banks were given awards for best performance.

Minister of State for Finance Balasaheb Vikhe Patil and Planning Commission Member Sompal also attended the function.

UNI

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